MQTrader Education Series

MQ Trader – Fundamental Screener

MQTrader Jesse
Publish date: Tue, 07 Aug 2018, 05:54 PM

Introduction

Fundamental analysis of a stock plays an important role for picking stocks for long term investment. In this article, we will be focusing on the key features of MQ Trader Fundamental Screener. This article is the continuation of the previous post, kindly read MQ Trader – How to pick a stock? for a better understanding.

What is Fundamental Screener?

A fundamental screener serves as a popular framework to investigate investment tips in an organized and systematic way. It can provide an initial impression of a company and its prospects. Generally, fundamental screeners focus on criteria like a company’s financial growth, income and revenues to determine whether the company possesses qualities for long term investment.

MQ Trader Fundamental Screener is a stock screener that is designed for filtering the stocks in Malaysia stock market based on fundamental analysis. There are some key metrics which are available in this screener, are explained in details at MQ Trader – Variables of Fundamental Screener.

Source: MQ Trader Stock Analysis System

Screen categories

The hardest part of deciding what to invest is actually deciding what criteria that traders want to consider in a company. The set of criteria can be customized based on the type of trading or investment that we perform. Longer-term investors which focus primarily on fundamental analysis can be divided into a few categories:

Category of investing

Type of stocks

Value investing

  • Place a higher priority on whether current stock price is proportional to the health of a company
  • Seek profits from those undervalued stocks neglected by the market
  • One of the examples for value investor is Josef Piotroski

Growth investing

  • Put higher priority on the future prospects of a particular company
  • Pick stocks that are undergoing growth stage of their life cycle where high rate of expansion in sales take place.
  • One of the famous growth investors in Peter Lynch

Income investing

  • Generate gains mainly from dividend income instead of capital growth
  • Michael B. O’Higgins applied this trading strategy

Bargain Investing

  • Identify market mispricings of extremely out of favour stocks
  • One of the famous bargain investor is Walter Schloss

Quality investing

  • Select the companies with high return of equity that will continue to outerperform
  • Buffett Hagstorm practised this investing style

Short Selling

  • A high risk investment focusing on overvalued or fragile companies by gaining profits when the share price falls

What to filter?

Different trading approaches possess risks at various levels, so it is very important for traders to understand in depth on the risk management and the rate of return of the investment approach that we are using.

There are several considerations which have to be taken before deciding what kind of screening that traders want to obey:

  • The time taken for the profits to be earned
  • The risk tolerance and needs of traders
  • The suitability of the investing styles to the current stock market condition (bullish, sideways or bearish)
  • The frequency of the list qualified stocks to change
  • The amount of investing capital required

Conclusion

Stocks screening is an initial step of investment to help traders to narrow down the stocks that meet your expectations and requirement efficiently on making a wise decision in stock investment. However, it is neither a substitute for independent research on the stocks nor buy list of the stocks. Further study on the financial background stocks has to be done before we start our investment.  For knowing more on how to use MQ Trader Fundamental Analysis System, you can read Introduction to MQ Trader Trading Strategies.

Technical screener and volume screener can help traders to determine the entry share price as well as the trading volume of the stocks respectively. They are also available in MQ Trader Stock Analysis System. If you are interested to know more, please visit MQ Trader – Technical Screener for Up-trending stocks and MQ Trader – Technical Screener for Down-trending stocks, MQ Trader - Volume Screener.

Community Feedback

We encourage traders to try out and evaluate the MQ Trader system and provide us feedback on the features you like to see in the system. We have received many positive feedbacks so far, and we are currently compiling and reviewing them for possible inclusion into the next release of the system.

We would like to develop this system based on community feedback to cater for community needs. Thanks to all those who have provided valuable feedback to us. Keep those feedbacks coming in!

Disclaimer

This article does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties in the Internet. We may or may not hold position in the stock covered, or initiate new position in the stock within the next 7 days.

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MQ Trader stock analysis system uses Artificial Intelligence (AI), various technical indicators and quantitative data to generate accurate trading signals without the interference of human's emotions and bias against any particular stock. It comprises trading strategies which are very popular among fund managers for analysing stocks. 

MQ Trader stock analysis system is SPONSORED for MQ Trader members. To use this amazing tool, you can sign up via MQ Trader Sign Up!

More features will be released soon. Stay tuned!

Contact us

Please do not hesitate to contact us if you have any enquiry:

Email: service@mqtrader.com 
 

 

Discussions
1 person likes this. Showing 2 of 2 comments

Bystander123

thank you Jesse ! for your MQTrader info blog, very educational, look forward to your continual sharing.

2018-08-07 20:26

hstha

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2018-08-09 23:34

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