The stock market is full of money-making opportunities. For many people, the stock market – which has grown tremendously over the years – has become a means of livelihood. Steadily but surely, a lot of people are now using their stock investments to reap huge monetary rewards. A lot of savvy investors know how to extract money in down markets as well as in good times simply by using stock screeners.
Stock screener is a tool that investors and traders can use to filter stocks based on user-defined metrics. Stock screeners are offered on many websites and trading platforms, and they allow users to select trading instruments that fit a certain profile set of criteria. Some trading platforms and software allow users to screen using technical indicator data. For example, one could filter for stocks that are trading above their 200-day moving average or whose Relative Strength Index (RSI) values are between specified ranges. The basic course of action of a Stock Screener is, of searching for companies that meet definite financial criterion. It has three components namely a database of companies, a set of variables and a screening engine that finds the companies that satisfy those variables and generates a list of matches. Investors can find trading instruments that meet a specified set of criteria by using a stock screening tool. Investors use screeners to find stocks that are poised to perform well over time. Active traders may use stock screening tools to find high probability set-ups for short-term positions. Users can enter a varying number of filters; as more filters are applied, fewer stocks will be displayed on the screener. Stock screeners allow investors and traders to analyze hundreds of stocks in a short period of time, making it possible to weed out those stocks that don’t meet the user’s requirements and focus on the instruments that are within the user-defined metrics. There are, of course, many types of stock screeners available to potential investors and you have to decide which one to adopt. The most important aspect of a screener is to know how to use it effectively to uncover good stocks.
It is really important to remember that while stock screeners can be a really great tool for traders when it comes to choosing the right type of stock, it is not always fool proof. Stock screeners will generally only use the quantitative data about the stocks, and will not factor in any of the qualitative factors. However, a Stock prices Screener can always be a good place to start your research process as they can save time and narrow your options down to a more manageable group.