Stock screening is one of the methods of many stock investors and traders use to get the ideal stocks. Nevertheless, it is also something a bit misunderstood. Many seem to think the stock sorting science, but this form of art. There is not an exact formula that the winner every time.

The aim of shares the screen is to find stocks that match your necessary attributes for investment or trade,

Based on your screen, you can come up with 1000 stocks or not at all. Ideally, you want your stock screen to reveal the 15-20 stocks for you to look at. That's only my own room. Some stock traders and investors want lists 30-50.

If you're new to the warehouse, verification, you can find verification software (or Web site), which proposes to manufacture screens. This is good for education, but you want to learn the ropes and to develop their own criteria. We all value things differently.

While I am sure you develop your own criteria for selection, here are some common traits that I like my stocks have:


1. The company must have positive operating cash flows.

2. The company must have at least $ X million in sales-I raise this issue when I was in search of larger companies.

3. Total debt / capital under X.

The duty / equity ratio depends on the industry. It could be under .5 or 2. For example, if I were looking at the auto industry, an acceptable figure would be higher than if I was looking for computer companies.

If you want to know more about the stock verification, there are a lot of information there-including the link below. There is no right or wrong to confuse the criteria for selecting stock