In the past, individual investors have always left stock sorting to the professionals. After all, they have the people and resources to sort through the outrageous amount of available data. However, a stock screener can help you tackle this task from your own home. These tools can sift through that same data in just seconds and give you companies to invest in that meet your needs. The more you use one, the better you will become at identifying which stocks to purchase. However, there are a few things you should think about before jumping in and purchasing one.
Overall Function
To ensure the screener you choose can handle your extensive consolidated screening list, you must ensure the overall function is robust enough. The key things to look for are a wide range of search criteria, a long time on the market, ease of use, options compatibility, and interactive charts. If you are going for overall function, you want to avoid any screeners that only include US and Canadian companies in their database.
Cost
Aside from the ability to handle large amounts of data, such as EDGAR by the Securities and Exchange Commission, you want to ensure it comes at the right price. Many websites offer free options which provide you with basic search tools. When looking at free and low-cost options, you should make sure they are well equipped, include many variable options, have an extensive database, offer options trading, and fit with your budget. Just be wary of any that have limited screening capabilities.
Day Trading Capacity
Day trading is its own ballgame, so you will want to make sure you get the right screener if this is your main intention. The best day trading screener will come equipped with AI learning capabilities, extensive filter options, brokerage integration, customizable screens, and a live trading room. It is essential to watch out for screeners that only have US and Canadian companies in their databases if you are a day trader.
Swing Trading Capacity
As you already know, if you are into swing trading, you need to have a specific set of tools at your disposal. The best screeners for swing traders will be highly visual and intuitive, easy to use, equipped with plenty of screening criteria, have access to global stock markets, and have low costs. Conversely, if you are into swing trading, you want to avoid screeners with fewer search metric options and those that can only track one exchange at a time.
Global Investing Capacity
Finally, some people like to buy and sell stocks all over the globe. If you are interested in this, you need to find the best platform for your needs. Look for a screener that offers a plethora of search options, charts, global access, live trading rooms, and a low-cost plan. The thing to avoid in this case is a screener that doesn’t contain much data.
Today, a tool lets you sift through the mountains of data associated with stock trading. It is called a screener. The best of these will fit in your budget and do everything that you want from them. Just be sure to find one that you can use without assistance.
