Candlestick Trading Forum
keyword search

Candlestick Trading Forum        

Modern Stock Screening Tools

Remember bell bottom jeans? How about the TRS-80 computer or the Rubikís Cube? Everyone can remember something from ancient history. Twenty-five years ago on Wall Street, the suits might have looked about the same and many of the same companies were there, but researching stocks hadnít moved ahead because stock screening tools didnít exist. Successful traders needed advice from brokers who only got paid when transactions occurred, or out-dated information from annual reports, 10-Qs and other documents. Stock screening thousands of companies for stock market tips was an idea that was simply was not possible

The 21st Century, Thanks To The Computer
Now letís talk about today. Because of the power and wealth of knowledge that exists in the Internet, it has become the source of an incredible amount of data about everything, especially the stock market. Personal computers have become powerful tools, able to screen the results of stocks and analyze mountains of data in no time at all. Like bell bottom jeans, itís great when the ďgood ole daysĒ gave way to advanced abilities and someone actually came up with electronic technical analysis tools?

Before, it simply wasnít possible to do stock screening of more than a few companies without a flock of analysts. Trying to find potential acquisitions out of a pool of more than two or three companies was overwhelming. Today, it is possible to compare many companies and to screen their stocks quite accurately. Today, any investor can access powerful stock market trading tools that did not exist before. Now, these tools for analyzing stock market indexes exist on the Internet and many of them are free. As you might guess, some of the top-end tools are quite expensive but for most people, the research they want and need is free or available for a modest subscription. Itís time to throw away the Rubikís Cube and step into the 21st Century.

Finding Needles In The Haystack
These days, one of the most basic research tools available is the stock screening tool. Stock screening tools are provided in programs that can do in seconds what you canít do even with hours of research by hand. The best part is there are many stock screening tools on the Internet that are free for you to use. While some of the high-quality ones are included as part of subscription packages for research sites, there are plenty that you can find free of charge. What are you actually doing? The concept isnít difficult. Find stocks that meet certain search parameters instead of investing in a stock because it looks good at the moment. Sounds like Iím about to start a lecture on stock trading plans, doesnít it? Put together a stock portfolio based on strong research and come up with ways to measure its performance afterwards.

Stock screening tools give you the ability to define multiple variables such as stock sector, market cap, sales, dividends, and more. As you include more variables, your screen becomes more complex and you will receive fewer matches. After you enter your variables, the stock screening tool reviews all the companies listed on the stock market and outputs those that meet your parameters; this is your list of prospects. Have too many?  Simply run the stock screening tool again with more variables to reduce the number of hits. Some of the better stock screening tools will let you run more tests on the results you just received, while many of the lower-end programs leave you to set up your screen and run it again. Even if you are left to run your test over, you have saved a tremendous amount of time and hopefully you have just identified your next hot stock.

Conclusion
What happened to the 8 Track?  How about the Beta VCR?  These items evolved into new products thanks to technology. Thanks to the Internet and stock screening tools, even a beginner investing in the stock market can become something different too....he or she can become someone who makes money investing in stock. While youíre at it, get rid of your pet rock too!

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Candlestick Trading Forum