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How Stock Screeners Can Improve Your Trading Strategy

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If you’re thinking of getting involved with investment trading, then the first thing you’ll need to do is learn as much as you can about the market. The more you understand things like stocks, and the businesses or “securities” that list them online, the less likely you are to waste your money on a stock strategy that isn’t right for your needs.

As you begin to learn more about the stock trading market, you’ll discover that there are tools available online to help beginners make more informed trading decisions. For instance, a stock screener is a trading tool that investors can use to filter a large selection of stocks into a more manageable list of potential investments. Here are just some of the ways that stock screeners like the Finviz can improve your trading strategy.

Stock Screeners Save Valuable Time

There are thousands of stocks available on the market at any given time, and stock screening databases will help you to browse through a subset of them, based on the specific filters and choices that make you more or less likely to choose a stock. For instance, you might decide that you only want to invest in a stock that sells for a specific price or has a specific history of growth. Once you determine which metrics you’re going to use in your stock screening strategy, the screener will simply filter out any options that don’t match with your criteria. This means that you can save a lot of time that you would have spent filtering through stocks that aren’t relevant to you.

Stock Screeners Remove Bias

When you’re first getting started with stock selecting, you may not realize that certain biases are playing into your decisions. Over time, you begin to notice these behavioral biases and attempt to filter them out of your choices. However, while you’re watching the latest stock market news, your stock screeners will make it easier to detect your bad investing decisions.

Stock screeners force you to look at potential stocks from a highly logical and numerical perspective. There’s no background knowledge on a company available when you’re using a stock screener. Instead all you have are numbers with which to make your decision about which stocks you should purchase. Once you’ve narrowed down your choices logically, you can always do additional research into your chosen stocks to ensure that you’re making the right decisions.

Stock Screeners Unveil New Investment Opportunities

Finally, one major benefit of using a stock screener is that they allow you to unearth potential opportunities for investment that you might not have seen or considered otherwise. If you’re browsing through thousands of stocks on any given day, the chances are that you’ll ignore a few that you might have been better off looking at in closer detail. Stock screeners will eliminate the stocks that are wasting your time, so you have more chance to focus on the stocks that matter. Additionally, a stock screener will also ensure that you don’t forget to consider some of the smaller and less familiar stocks that often get overlooked in the trading market. These stocks can sometimes be the best investments.

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