| Stock screeners allow traders to screen the | | | | technical analysis can also be included to fine tune |
| entire market for stocks that conform to certain | | | | the screening. |
| criteria to meet the needs of the trader. They | | | | So how should these screeners be used? Let's |
| are indispensable for modern stock traders, and | | | | have a look at the technical criteria that can be |
| can be either web-based or stand-alone tools. One | | | | used in filtering the stocks that you want on your |
| of the benefits of web-based screeners is that | | | | Watch List. You could start by trying to find |
| upgrades tend to be automatically available. | | | | trending stocks, or those that will break out |
| If you consider how stock screening was carried | | | | above or through resistance levels. The criteria to |
| out some years ago before the advent of the | | | | use in your filtration in order to screen for these |
| modern online stock screener, you will begin to | | | | could include: |
| understand the benefits that these systems have | | | | - Stock trending up |
| provided in enabling trading opportunities to be | | | | - Rising on unusual volume |
| identified in seconds. Think of pouring over the | | | | - Price crossed above resistance line |
| stock exchange sections of newspapers, of trying | | | | - Price has touched support line (It is likely to climb |
| to make sense of radio, real-time stock quote | | | | again) |
| machines and of charting graphs by hand. | | | | - Price has reached new highs |
| These manual procedures allowed very few | | | | Many of the fundamental screeners can be |
| stocks to be examined in a given timeframe, and | | | | obtained free although if you want a real-time |
| you would be lucky to spot any stock to meet | | | | technical screener then you will likely have to pay |
| your criteria, let alone compile a useful Watch List. | | | | a nominal fee. However, although it is normal for |
| By allowing today's traders to set criteria and | | | | stock screeners to be predominantly one or the |
| automatically screen out all companies that do | | | | other, there are screeners available that can be |
| meet these criteria, today's stock screeners can | | | | used with both fundamental and technical criteria. |
| examine tens of thousands of stocks in a very | | | | This expands the type of screening available to |
| short time. Results are virtually instant. | | | | you, and you should never buy a stock unless |
| The filtering criteria used can detect stocks | | | | both the fundamental and technical criteria are |
| suitable for growth, for short or long-term | | | | both positive for the stock. You will achieve |
| earnings, or whose values will increase in a | | | | better results if you screen the stocks for both |
| relatively short period of time. Using technical | | | | types of criteria, and for that you will need either |
| criteria to spot key reversals and breakouts can | | | | a combined stock screener, or one of each type. |
| boost your stock earnings several-fold. If a trader | | | | Stock screeners are essential for screening in |
| feels a specific criterion to be important, then the | | | | today's markets because most professionals |
| stock screener will find a list of stocks that fit, | | | | actually underperform the market due to human |
| and if several criteria are used in the same | | | | influences. A machine-based model can filter out |
| search, stocks with very specific properties can | | | | human weakness, such as believing press |
| be identified. | | | | forecasts, and produce better results assuming |
| There are two specific types of screening that | | | | that the criteria, or variables uses, are those that |
| can be carried out: by use of either fundamental | | | | affect the direction of stock prices in the future. |
| or of technical criteria, and each can be made | | | | Given that is so, stock screeners are a must for |
| available either as end of day or real time intraday | | | | the modern investment professional and novice |
| screening. Most normal stock screeners utilize | | | | alike. |
| fundamental criteria, although elements of | | | | |