Is It Time to Use Stock Screeners in Your Trading Strategy?


If you’ve been thinking about getting involved with penny stocks for quite some time now to earn extra money, then you might have begun to look into the tools you can use to improve your chances of success. While no-one can tell you which penny stocks are going to be successful and which ones are going to flop, there are services out there that can be extremely helpful to people exploring the market for the first time. A stock screener is a tool that helps to filter the stocks available on the market down to a handful of potential investment options that suit your parameters. For instance, you might filter through stocks based on their earnings, or price per share. This way, you spend less time considering stocks that simply don’t fit with your investment strategy.

Using Penny Stock Screeners

There are plenty of different penny stock screeners out there, like Google and the Finviz screener, and each comes with its own unique benefits. For instance, with the Finviz screener, you can come back to your saved stock list at a later time if you need to go away and think about your options for a while before you invest. Stock screeners are most popular with penny stocks, rather than conventional trading assets. The reason for this is that there are so many different penny stocks on the market that it would be practically impossible to find the right ones without any additional help. With a stock trader, you can filter thousands of choices down to a few hundred, or even a few dozen. Depending on the stock screener you choose, you’ll be able to filter results according to either a pre-set range of parameters or a filter that you create for yourself. Some of the things you can look at include:

  • Share price
  • Profit margins
  • Industry
  • Growth rate
  • Trading volumes
  • Dividends

Do Stock Screeners Make Trading Easier?

The important thing to remember if you’re thinking about using stock screeners is that they’re not the answer to all of your trading problems. Many people accidentally end up using stock screeners as a crutch to guide them through the trading process, when the truth is that these tools should only really be used as the first step in your research strategy. The most successful investors use stock screeners to track down potential investments that are best-suited to their needs or eliminate investments that just don’t appeal to them. This is a particularly important process when you’re sorting through penny stocks. However, it’s important to remember that stock screeners will only provide a certain amount of information about the stocks you’re interested in. A stock screener can tell you what the current price of a stock is and reveal other useful quantitative data, but it can’t provide an insight into what’s going on within the business, or whether the company has any plans for immediate growth. The best way to look at a stock screener is as a launching pad for your initial trading strategy.