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by Finage at August 5, 2021 4 MIN READ

Stocks

How to Use a Stock Screener | Stocks APIs

 

What is a Stock Screener and How to Use It? When you find yourself in a position where being decisive on a particular stock proves to be difficult, you can rely on stock screeners. So how can they eventually help you make the right investment?

 

The stock market has continuously seen growth over the years. From a market capitalization of about $2.5 trillion in 1980, it has risen to more than $70 trillion today. Due to its size, it can be quite challenging to find the right stock to invest in and generate a profit.

 

When you find yourself in a position where being decisive on a particular stock proves to be difficult, you can rely on stock screeners. So how can they eventually help you make the right investment?

 

Contents:

What Should I Know About the Best Investing Tool for Stock Market Research?

What Is a Stock Screener Used for?

How Does a Stock Screener Take Your Trading to the Next Level?

Is It a Valuable Tool for Business?

 

What Should I Know About the Best Investing Tool for Stock Market Research?

You can find many trading techniques to use and make winning trades. But what is the best tool for the stock market? The most widely used trade would be looking for small float stocks out with big news or in a hot sector trading higher on strong volume with strong uptrends to go even higher.

 

For example, a stock screener is a specialized stool that is designed to carry out specific searches of stocks. These searches are guided by specific parameters issued by the investor themselves. Generally, you will have a multitude of stocks to choose from and this can be overwhelming and the process of sifting through this list can be tedious and time-consuming. A screener will help you reduce the number of options to a manageable handful. Other important points:

 

  • Stock screeners have been in use for more than two decades and in this time they have evolved. For example, today they can be customizable meaning that any investor can make use of them.
  • You can make it as simple or as intricate as possible to fit your needs. For instance, you can use the screener to limit your operations on the New York stock exchange or add several options on your screen.
  • Stock screeners enable investors to use a wide range of parameters to search for the right stock. For example, many screeners will enable you to use revenue as a possible criterion; you can also use debt as a possible factor.

 

What Is a Stock Screener Used for?

In a nutshell, the purpose of a stock screener is to narrow the numerous options of stock down to a few promising ones. As such, you will have a better chance of finding the stock(s) that will work perfectly for your trading strategy for a given period. One of the biggest advantages of using this tool is that it saves a lot of time for the trader. With this time, traders can focus on doing as much research as they possibly can on the condensed list.

 

Another important function of stock screeners is that they serve as a map to find new stock. What does this mean? When it comes to trading, many investors fall into the trap of considering a small group of stocks. Although this can lead to profit generation, it limits their chances of maximum capitalization. The screener will help you find a promising new stock that fits perfectly in your strategy. In this scenario, variety plays a huge role in investing.

 

How Does a Stock Screener Take Your Trading to the Next Level?

If you have been trading for a while now but haven’t used a stock screener, you are missing out on a lot. Stock screeners are tools that can actually make a huge difference in how you trade stock. They can be incorporated at any level of experience, this means you can start your journey with one and it will work well.

 

Stock screeners make it possible to work with as many stocks as you like. You can go through thousands in one day and have the best options waiting for you after an intense search. The new set of stocks can be further broken down into smaller sets until you have a shorter list you can work with.

 

Once you have the final list of candidates you can do further research on each one of them. The in-depth search will eventually help you know what and when to make an investment with the intention of making the highest possible profit on an asset.

 

There are a few limitations of stock screeners. One of them is that investors cannot add as many categories as they like to their strategies. Although this doesn’t sound quite problematic, it prevents the tool from being used to the investors’ fullest advantage. However, as screeners become more modern, this limitation could soon be a problem of the past.

 

Is It a Valuable Tool for Business?

A stock screener is a valuable tool and should be in the arsenal of every stock trader. They are designed to reduce the amount of data processed by the investor. As a result, more time is focused on improving their strategies which ultimately leads to increased odds of profit generation.


Therefore, investing in a stock screener is a good move. Once you have decided to use one the next step would be to find the right one for you. You have so many options available today. Check out the Finage services as some of the best examples are offered by the platform. You can also result in building your own screener if that suits you!

 


You can start building your own Stock Screener with Finage free Stocks API key.

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