Published On: Fri, Nov 9th, 2018

Building Your Own Stock Screening Process

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A stock screener is a powerful trading tool, but it’s something that many people still struggle to understand. Screeners work by displaying the kind of stocks that are best for you, based on sample parameters that you enter into a piece of software. For instance, if you only want to see stocks that are trading at a certain price, then you can set the screener to filter out anything that doesn’t fall within those price margins. Tools like the Finviz screener have earned a lot of attention over the years for their ability to simplify the trading process and save valuable time on filtering through potential trades. Many people in the penny stock industry use stock screeners to help them search through thousands of potential stocks at once. The question is, how can you build a stock screening process that’s specifically designed to work for you?

Using Screeners, the Right Way

The first thing you’ll need to know is how to use your stock screeners the right way. In other words, you’ll need to use them as a method of finding the right potential investments, rather than using them to decide which investments you’re going to spend your money on. Ultimately, these tools are all about removing pointless investments from your sight, so you can focus more on the solutions that are right for you. If you’re interested in finding stocks without a broker, then there’s a good chance that you’ll want to start with a stock screener. However, remember that they’re only a starting point, and not a way of doing your due diligence on a company, or generating accurate information about your financial options.

It’s also important to be cautious with using pre-set screening options when you do start using screeners, as they might promote things that aren’t right for your investment strategy. It’s better to learn how you can use these screeners properly instead.

Using the Data Correctly

Once you know that a stock screener is just the beginning of your trading strategy, you can start to build a reliable strategy. The most important thing you can do is develop your proprietary way of examining trades that builds around how you plan to invest. For instance, there’s a lot of available data out there to explore, and it’s a good idea to take the time to collect the data that matters to you and look at it carefully from the right perspective.

A personal collection of information that can accompany your stock screener is a great way to make sure that you’re not tempted to make any decisions based on incomplete information. Remember, a stock screener only gives you the basics to start with when you’re looking for trades that might be right for your portfolio. Once you’ve found those potentially interesting stocks, it’s still up to you to seek out the extra information required to find out whether they’re lucrative. The more information you can collect about any given stock, the more likely it is that you’ll end up with the results you’ve been searching for.