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Hoots : What indicators should I look for when investing in various stocks or funds? Say I want to manage my own portfolio of stocks or funds, which key indicators should I primarily look for? To me there are few, although I'm not - freshhoot.com

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What indicators should I look for when investing in various stocks or funds?
Say I want to manage my own portfolio of stocks or funds, which key indicators should I primarily look for? To me there are few, although I'm not sure they are the most relevant:

Sharpe ratio
Volatility
Correlation between stocks/funds
Financial "viability" of firms

What indicators does a portfolio manager look for? Are there any simple reference material, softwares or tools that I could use to build my own portfolio?

Thanks


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Rather new here - I dabble mainly on the Quant/Math forums. The simple answer is that indicators (Sharpe, volatility, ect. are probably better classified as statistics) are mostly useless - past information rarely influence future results. If your horizon is long term, then you may wish to trust that the market has positive drift in the long run. However, passive investing can suffer from large and long drawdowns - erasing returns that take years to build. Some active strategies are effective because they in some sense "provide a service". You can sell iron condors (betting the underlying will stay between two prices) in almost any account since the risk is defined. This is a nice income generating strategy. You can also look towards some basic ways of lowing basis on underlyings that you have a positive directional bias for by selling calls or call spreads against this position.


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