Stock screener: Definition and its types

Posted on Nov 12, 2017 in Uncategorized

 

Stock screener is the tool that traders can used to screen out the various stocks available by using the different parameters. These are used to find the stocks that are performing over a period of time. These are basically used for long term investments. Users can enter a variety of filters. The more the filters applied, the fewer stocks will be displayed as a result of cancelling out those options that don’t meet the user’s requirements and focus is on the instruments that are within the metrics.

How stock screening is done?

Stock screening is done by two ways:

  • On the basis of fundamentals
  • Technical analysis

Fundamental stock screening involves finding those companies with specific financial profiles. Traders try to screen stocks on the basis of factors like balance sheet ratios, price, market cap, etc. The filters are adjusted so as to find the companies making new highs and lows . Stock screening doesn’t simply mean that the stocks will move in the desired and required direction but it simply means that the stocks have the criteria that are needed by the trader. Stock chart screeneris very much capable of doing so.

Technical analysis involves the prediction of the prices of bonds, stocks, indices, etc. The primary requirement of the technical analysis is to speculate the future price level, though technical analysis doesn’t give any explanation regarding the change in prices. It involves the use of different kinds of charts.

There are plenty of stock screener available online. Choose the one that fits your needs. If possible, first try the trial version. Only once you’re happy with its performance, then go for the complete subscription. These stock screeners are worth spending time and money. They can serve as a helping hand to the traders. Stock scanner not only saves time but also helps to reduce the tedious work of screening out.

 

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