Not too long ago, traders did things very differently. There weren’t any sophisticated computing technologies to help you stay abreast of the latest real-time stock price movements, stock volume movements, or financial reports. It was for want of a better phrase, a grind. Traders with a passion for the stock market had to work extremely hard to source reliable information on performance metrics for stocks. Much of the data was out of date, incomplete, or flat-out irrelevant.
Today, the world’s stock market traders have access to an enviable selection of powerful training tools, and trading resources. Foremost among them is a nifty resource known as a stock screener. As a trading tool, a stock screener allows you to input specific parameters based on your trading needs. You can filter out all the noise and focus on precisely what you’re looking for in a stock. Put differently, you can tailor your trading activity according to your budget and your preferred trading strategies. With a penny stock screener, it’s possible to filter according to specific criteria, including:
- Stock Price
- Stock Sector
- Percentage Gain
- Market Capitalization
- Volume of Trading Activity
What is Trading Like Without a Stock Screener?
Stock screeners essentially lift the veil off thousands of stocks that would otherwise be impossible to assess. Imagine how many stocks are listed on the world’s premier exchanges? Thousands of them. It’s not just the S&P 500 stocks that trade on a daily basis; it’s little-known companies with potentially outsized yields. A stock screener is not a panacea to trading; it’s one of several powerful tools and resources you can use to make your life easier.
In the absence of a stock screener, it’s back to the grind. Sort of like going from a high-powered A.I. vehicles back to Flintstone-style manpower vehicles with stone wheels. Stock screeners boost your efficiency to the nth degree. You don’t have to pour over mounds of data on a daily basis, hoping that you didn’t miss that one golden stock with extreme volatility, massive price movements, or incredible percentage gains. It’s all about leveraging the power of technology, harnessing that potential, and implementing it in your day trading regimen.
Stock screeners are not designed to be used once in a while; they are daily-use resources and they work. Of course, not every stock screener is cut from the same cloth. Some are better than others. Imagine using a stock screener that doesn’t update in real-time? The value of information provided by such a resource would be limited, especially in the world of day trading. When you open and close trades within the course of the same day, you cannot afford to rely on out-of-date information. Only real-time data will serve your needs well.
Of course, there are other instances where stock screeners may be lacking. If a stock screener is limited in terms of the stocks it screens, it is also seriously lacking for traders. Imagine a resource that simply doesn’t assess the performance of newly listed stocks, or stocks below a certain market capitalization, or foreign stocks, et cetera.
You can well imagine the shortcomings you would face if you’re looking for profitable opportunities, and they simply aren’t listed on the trading platform utilizing the stock screener. For all of these reasons, it’s important to perform the requisite research to ensure that you are using the best possible tools for your trading needs.
Hallmarks of Top-Tier Stock Screeners
We already know that it would be disadvantageous to limit yourself to an inefficient stock screener. But what are the characteristics of world-class stock screeners? Let’s take a look!
- Stocks screeners should be compatible with multiple browsers.
- Search functionality according to sector, and market capitalization.
- Price, affordability, and ease-of-use are important factors to bear in mind.
- Quick-click functionality without having to open multiple tabs, and searches.
- Social media connectivity and integration to find the stocks making the news.
Naturally, it is vitally important to pick stocks that are actually ‘doing something’, not merely static. In terms of price performance criteria, it’s always worthwhile looking for substantial dollar gains and substantial percentage gains. Those are important beacons for trading purposes. Volatility refers to price fluctuations about the mean. The more volatile the stock, the greater the potential for realizing gains during your trading sessions.
Now that you have a pretty good idea about what stock screeners are all about, you will definitely want to implement them as part of your daily trading regimen.