Only you can decide that! It is important to understand in depth the risk profile and return characteristics of any investment approach you are using. By reading the background and browsing through the screen lists generated, you can get a good sense for the kind of companies that a screen favours and any industry or risk concentration that a given screen may generate. When determining which screen(s) you might want to follow, it's worth asking yourself the following questions:
- Does the screening approach match my risk appetite and individual needs?
- How is this screen likely to react relative to the current market environment? Is it bullish or defensive?
- What is the proper benchmark to measure the performance of this screen (in terms of market capitalisation, industry concentration, growth vs. value)?
- In terms of rebalancing, how frequently does the list of qualifying companies change?
Most importantly, remember that screening is just a first step on a journey. There are qualitative elements (e.g. the calibre and honesty of the management team) that cannot always be captured effectively by a quantitative screening process. Detailed fundamental analysis of any stock you are considering for purchase is likely to be important for successful investing.