Should All Investors Use A Stock Scanner To Help Them Build Their Portfolios?

Do investors need to take advantage of using a stock screening tool? Some say yes, and some say no. Each investor has different goals and plans for their portfolio. Let’s say that you just want to buy and hold five stocks. You might think that it’s not a good idea to use a screener. Whether you use a paid stock scanning tools is up to you, but to be sure, the information generated would be of big help.

Furthermore, even buy and hold investors tend to have to change positions from time to time, at least on a security or two. Warren Buffet consistently exits positions over time, and he also enters new positions. Mutual funds publish their holdings, which are changing gradually over time. Additionally, the five stock buy and hold portfolio serves as a foundation for the best case scenario in which an investor might decide against using a stock screening tool.

In other words, the stock scanner would still be useful in that regard. And so you can imagine it would even be more useful to someone entering and exiting trades more often, whether swing trading or day trading. You can generate all kinds of reports that can help you get a closer look at company data. You want to especially pay attention to sales.

All the data is important, but there sales growth is a big factor. You can find sales growth in a company that is selling at a discount. You want to pay attention to the P/E ratios, too, as well as EPS or earnings per share. There’s so much data that you can compile on the companies that you know, and you can find companies you don’t know about, too.

If you were to start using a stock screening tool, you would see that they are advantageous in many ways. I have not yet personally used one, but I have been privy to the data from an investor friend of mine who uses a paid tool. The site generates very detailed reports on companies and the forecasts for them moving forward.

There are all different kinds of stock scanning tools out there. You’re going to see that when you take a look at what’s available. If you decide to use one, I hope it helps to make a big difference in how you set up your portfolio moving forward. There are all kinds of ways in which a stock screening tool can help you.

Is Using A Stock Scanner Or Screener A Good Idea As An Investor?

Stock scanners or screeners are great tools that help people find securities to invest in, whether buying and holding, day trading, swing trading, etc. Even seasoned investors don’t know all the tickers and their endless categorizations. Plus there are always IPOs being introduced to the market. One of my friends is the most seasoned investor I know, and he uses a paid screening or scanning tool to help him find the best investments.

There are screeners that produce lists, and there are stock scanners that produce reports. If you use a paid scanning tool, you can be privy to all kinds of reports and analytical data that can help you make the best investment decisions. If you want access to that type of data, you can use the screening tools that are available. Some are better than others, so it helps to look at reviews or get ideas from seasoned investors.

If I were to use one, I would pick the one that my investment mentor uses. I have yet to use one of these tools. Initially, I thought them to be for people that had more money and not for beginning investors. While I’m not necessarily a beginner, my nest egg is at its beginning stages. Therefore, I never really locked onto the idea that I should be using an investment scanner. If you aren’t currently using one, I suggest considering doing so.

A stock screener would be a helpful tool for you as you build up your investments. Even if you have some excellent investments picked out, these scanners can help you generate reports that will guide you to the best investment decisions regarding those securities. It’s not just about picking based on the numbers. There are all kinds of factors involved.

You need that numerical data, however, and you need to get to know a company before making an investment. The old adage that Warren Buffet always uses is ‘invest in what you know.’ That is good advice, and it’s good advice to use a stock screener to gather as much information as you can to get to know a company. If you are going to be an investor, you want as much information as you can find to help fuel your decisions. That can be of big help to you when it comes to maximizing returns and compounding them over and over again towards building wealth.