Sunday, February 26, 2012

Absolute Filters, Fuzzy Logic, Rumours

In the beginning stage of an investing process, is to select a stock. Selecting a stock is a very frustrating task to me because there are many factors I need to take into consideration. I found there are two common methods that people always do in selecting a stock: absolute filters, fuzzy logic, and rumours from newspaper.

Absolute filters is a process of screening through every stocks and filter out those stocks that doesn't meet your minimum requirement. For example, those stocks that have dividend yield more that 3% and growth rate over 15%.

Fuzzy Logic is to go through a list of interview question, such as the product, future development plan, any achievement base on the last three years track record. And then from that answer will be given a score. Those stock with high scores will be short-listed candidate into buy/sell list.

Rumours from newspaper always the last to know, and always miss out the golden opportunity to buy/sell. But don't few bad on it, some people usually overlook the opportunity that hide inside the newspaper.

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