Advantages of using a stock screener

Posted by mffais12 on June 18th, 2014

Advantages of using a stock screener

There are stock exchanges all over the world. Obviously then, there are a large number of stocks that are traded all over the world too! As an investor, you may be interested in picking up the “right” kind of stocks. Ones that will add to your portfolio considerably. You can select your stocks the hard way – by going through each and every stock listed in the exchanges and check out their fundamentals and so on. Or you can do it the easy way and use a stock screener.

What is a stock screener?

This is software that allows you to choose the kinds of stocks you are interested in according to the criteria you set. It consists of:

  • A large database of companies
  • A screening mechanism that responds to your commands and
  • The ability to apply certain algorithms to come up with a list.

The end result of using such a stock screener is a narrower list of stocks that can help you get a more focused idea on good stocks.

Why use it?

Time - For one, it can save you an immense amount of time! You simply have to specify the kind of stocks you are interested in, based on the criteria you consider important. Feed this information into the software and it will generate the list of stocks that will suit your requirements in no time at all.

Powerful functionality – a stock screener has the capability of offering some immensely powerful functionalities and granular control into your stocks list. For instance, you can:

  • Choose the range of price to earnings ratio that appeals to you
  • Size of market capitalization
  • Stocks that have fallen in their price or
  • Stocks that have risen in their prices.

This simply means that you can play around with as many metrics as you want to find the perfect list of stocks for yourself.

Big brands – there are some big “brands” that have come up with stock screening tools. This simply means that you can rest assured of their veracity and effectiveness. Given the availability of such a wide range of options, you can even use stock screeners from various sources to cross reference your findings. Depending on the frequency with which you will use the tool and the kind of metrics you want to deploy, you may be better served by going in for a premium stock screening tool.

Thus, going in for help via software is a very good idea indeed to deal with the massive amounts of information that governs stock markets everywhere.

For more information, visit: http://www.mffais.com

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mffais12
Joined: June 18th, 2014
Articles Posted: 1