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Buying a Computer

Trends in the computing industry and issues to consider before purchasing a new computer or upgrading your current system.


Analyzing, selecting and trading exchange-traded funds

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Using investor sentiment to indentify tops and bottoms in the market.

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Market breadth and momentum indicators to gauge the market's overall direction.

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Screening for and analyzing mutual funds.

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Constructing a portfolio of investments and the issues involved, including risk management.

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In-depth reviews of some of the most popular investment-related software.

Stock Screening & Analysis

Using quantitative stock screening filters to identify possible investment and analyzing individual stocks.

Stock Valuation

Determining the "true worth" of a company.

Technical Analysis & Charting

Using technical indicators and charts to help time your buy and sell decisions.

Tax Preparation

Using computerized tools and resources to prepare and file your personal income taxes.
Computerized Investing > First Quarter 2014

Technical Trading Systems, Part 1: Trading System Overview

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by Wayne A. Thorp, CFA

Regular readers of Computerized Investing are undoubtedly aware of the 60 or so stock screens that AAII tracks on its website. These stock screens are based on quantitative rules applied to the universe of stocks in AAII’s Stock Investor Pro fundamental stock screening and research database program. There are several benefits of using a regimented fundamental stock screening approach to select stocks. First, it helps to remove emotion from the investment process. Second, it saves time, as with the click of a button you can instantaneously winnow down the investable stock universe from many thousands to, perhaps, only a dozen or two.

On the opposite end of the spectrum from fundamental analysis is technical analysis. This type of analysis focuses on price and volume behavior for an underlying security. Unlike fundamental analysis—which assumes that factors such as earnings and dividend growth, balance sheet strength and other fundamental elements impact a stock’s price—technical analysis is based on the premise that most, if not all, of the information regarding the underlying asset is captured in the price.

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