To source and analyse all of this information manually would be an impossible task. This is the reason why traditionally traders and investors have tended to focus only on trading within a very limited area such as stock on one exchange, one industry or sector. By doing this investors have been able to keep track manually of all of the latest market data, news and trends, enabling them to make sensible trading decisions.
Stock selection software can remove this data overload problem. These software programs contain a predefined set of tests or indicators that need to be met. They then go off and apply their pre programmed strategy across the market data on a much wider scope than any individual could do. The output will be a list of stocks or trades that have favourable indicators. Once you have this output you have effectively taken a huge shortcut in the stock selection process.
Taking your output from stock selection software and then narrowing it down further means you are effectively picking the best from the best. With the potential benefits that stock picking software can bring to your trading profits it is a small price to pay.
|
