Stock Scanners & Screeners For Day Trading

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. This is a great day trading resource for all kinds of investors.

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.

Stock Scanners Can Generate Very Helpful Reports

When using stock scanners and other research tools, you can find out great picks that you would not have otherwise run across. How do you usually do your research? It’s one thing to run across new tickers, and it’s a completely different story to have screened them for low P/E ratios, market cap and more.

What if you want to find stocks that are at or near their 52-week lows? As an investor, I’m aware that it can be fun to do the search manually. Yet it can also take a lot of time, while you actually end up missing out on many tickers anyway. If you go at stock research manually, you are basically looking for tickers based on your interests and then looking at the metrics for each individual security one at a time.

Stock screening tools allow you to look at lists of securities that all fit certain criteria already. You can analyze the data afterward for all of those securities. It’s hard to argue with the idea that you are going to find many more great picks that way, right? Take a look at this example:¬†

It may seem a little methodical and calculating, but you only start there. Afterward, you do your due diligence as you originally intended to do. That is how you are going to improve the way you look at stocks. Now, I mentioned P/E ratios and market cap, but allow me to tell you a story so I can put it more bluntly.

While I like to think of myself as a good investor, I am nothing compared to one of my mentors. He is a seasoned investor with a lot of money, and he has been telling me about a stock screening program he uses. It is a paid tool and program, but it’s much more than just searching for tickers according to certain criteria.

Finding stocks with those kinds of search tools is advantageous, but the program uses provides detailed reports and comparisons. You see, you want to look at sales growth, too. Sales growth has a lot to do with whether or not a company is moving in the right direction.

After he sent me a few reports, I could tell that the program he uses is worth the money. Have I started using the program yet? No. Perhaps I should be taking my own advice since I’m suggesting that type of program to you now. While each person’s situations and investment goals are different, I am starting to come around myself.

The more money you have, the more cautious you start to be about it being in the right places. If you are a serious investor, perhaps it’s time to get to using a serious program. It’s very interesting how we learn things as we go, and then we look back and think now why did I…Are you going to look back, or are you going to take a new step as an investor and get a stock screening tool that can help you get those returns?