Previously in my Stock Screening : Dow Jones 30 posted in November 2012, I discussed lightly on the screening strategies on the Dow. Well, the screening strategy is applicable almost to every stock exchange in the world. Blue chips or companies that have significant weight on the exchanges are worth to consider.
Fundamentalists like the screening the financial data very much. Specifically, many private investors and traders believe that being conservative and aiming stable big companies should be in their portfolio. However, for small traders, the cost per unit share may sound awfully daunting. They may need to have a substantial amount of capital in order to successfully execute this strategy.
To make it more relevant, I back tested Malaysia Blue Chips on Bursa Malaysia. It is quite a straight forward exercise. You could simply open up the newspaper and look for the top 30 of stocks based on the market capitalization.
You can also try to screen specific industry indices. Aim for the big indices like Finance, Plantation, Properties and Trade Services. These sectors carry more weigh and more choices for investors.
For me, I like Bumi Armada, Hong Leong Bank and Oil and Gas stocks. These stocks could offer stability in the earnings. In fact, their fundamental and business model are solid. It is quite unlikely to see a sudden turbulence in these sectors and as long as there is a quantifiable certainty, I could have a good night sleep.
The key for this successful stock screening is the status of blue chip i.e. the size of market capitalization. Then, perhaps you want to find the cheapest of them. If your capital is limited, perhaps you should not be putting your bet on British American Tobacco or Nestle.
Thus, screen the big companies or blue chips. Find the cheapest. Play your volume.
Fundamentalists like the screening the financial data very much. Specifically, many private investors and traders believe that being conservative and aiming stable big companies should be in their portfolio. However, for small traders, the cost per unit share may sound awfully daunting. They may need to have a substantial amount of capital in order to successfully execute this strategy.
To make it more relevant, I back tested Malaysia Blue Chips on Bursa Malaysia. It is quite a straight forward exercise. You could simply open up the newspaper and look for the top 30 of stocks based on the market capitalization. You can also try to screen specific industry indices. Aim for the big indices like Finance, Plantation, Properties and Trade Services. These sectors carry more weigh and more choices for investors.
For me, I like Bumi Armada, Hong Leong Bank and Oil and Gas stocks. These stocks could offer stability in the earnings. In fact, their fundamental and business model are solid. It is quite unlikely to see a sudden turbulence in these sectors and as long as there is a quantifiable certainty, I could have a good night sleep.
The key for this successful stock screening is the status of blue chip i.e. the size of market capitalization. Then, perhaps you want to find the cheapest of them. If your capital is limited, perhaps you should not be putting your bet on British American Tobacco or Nestle.
Thus, screen the big companies or blue chips. Find the cheapest. Play your volume.
Reading these blue chips stocks,In this content Every stock has been defined in a detailed manner so that one may earn huge profits after investing his or her money in a best stock.
ReplyDeleteThanks Daniel. You can use the same method on any major exchanges though. Have fun!
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ReplyDeleteYour fundamental and technical reports on the stock market is awesome. Epic Research has some great ideas about the stock market.
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