Page 14 - Trading #101 Course – PART II TWO: SUCCESSFUL TRADING PIE – www.traderscoach.com

TRADING #101 COURSE – PART II TWO: SUCCESSFUL TRADING PIE – WWW.TRADERSCOACH.COM

The value of using software tools for scanning is that they do all the heavy lifting. There
was a time when scans of this nature had to be done manually, which can be a
laborious task.

It is well worth the cost of buying the right software to expedite your scanning and speed
up your action and reaction time, making you more able to get in and get out quickly
when there are markets on the move.

Of course, scanning software also saves your valuable time, which translates into
saving you money.

Fundamental Scanning Techniques

There are many pieces of information that traders using fundamentals work with to find
opportunities. Some of these fundamental scans are available as standard tools in
many front-end platforms. Examples of some popular fundamental scans are:
• Price-to-earnings (P/E) ratio.
• Debt-to-equity ratio.
• Price-earnings growth (PEG) ratio.
• Return on equity.
• Earnings growth.
• Revenue growth.
• Historical volatility.
• Shares outstanding.
• Calendar year high.
• Calendar year low.
Corporations release quarterly data. It is this data that is poured into your front-end
charting platform or other scanning service to give you the end result of your scan.
It is a massive amount of data, considering that on just one stock exchange, the New
York Stock Exchange, there are well over 3,000 companies listed. And each company
must report an extensive amount of information: earnings, debt, growth, and more. With
today’s computer power, it is possible to scan for the criteria you are looking for quickly
and efficiently.

Governmental Financial Reports May Assist You

in Scanning for Opportunities

The ever-changing financial landscape of the country may also assist you in scanning
for fundamental trading opportunities. A change in market trend may be indicated by
some late-breaking news report from a Federal Open Market Committee (FOMC)
meeting or from the U.S. Department of Labor.
Shifts in the economy are tracked and reported by the many governmental agencies
that are assigned the task of monitoring a country’s financial health and growth.

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