Saturday, July 24, 2010

IBD 200 List

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One of the best stock screens around is the IBD 200 list. This list is published every Thursday in the Investor's Business Daily. It includes the IBD's Top 200 Composite stocks. The composite rating is the Smart Select rating the IBD developed. It's an average of their other ratings along with some other factors. It usually contains those stocks with a composite rating of 96 or better. The list this week did have some stocks with a 95 rating.

The beauty of this list is that it all winning stocks will probably go through this list so if you watch is each week, you will be alerted to it at some point. You could if you want watch this list exclusively and try and trade it as has been recommended by Stockbee's Pradeep Bonde. Methods, results for this strategy will vary on market conditions at the time. You'll want to make sure that you watch the overall market trend too. I highlighted his strategy in my posts called Stock Market Investing For Beginners Using The IBD and Stock Trading Using The IBD 200 Composite List and How To Use The IBD 200.

The truth is though that you could take most of the stock screens in the IBD and trade them. You would get to know the traits of winning stocks that appear there. Some people think you need a bunch of stock screens when you probably should just keep it simple and choose one and study it.

This is the case with the IBD 200, the Stocks on the Move, the Stocks in the News, the Timesaver table and Weekly Review to name a few. All of these screens bring quality stocks onto your radar. The trick is to pay attention and do the research. That's the hard part. The actual work comes not from screening but from analyzing them after they hit a screen for fundamentals and buy points.

Start your stock market investing training by using screens but move onto further analysis to see if you  should buy them. Because a stock appearing on a list doesn't mean it's a good buy. It depends.

Good luck.

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