January 15, 2024

What Is A Stock Screener?

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    As you all know, stock day trading is one of the fastest-paced and most competitive fields of work out there. It requires traders to assimilate new information, think fast, and make quick and rational decisions.

    It’s no surprise then that traders welcome any help available to work in such a fast-paced dynamic environment and having the right tools at their disposal, sometimes, can be all the help they need. One such tool that is becoming more and more popular among day traders is the stock screener.

    In this article, we will explain what stock screeners are, learn how to use them, and discuss the one that so many traders believe to be the best.

    Key Notes

      • A stock screener can help you find the best trading opportunities
      • Retail traders can become more efficient when using stock screeners
      • A great tool to use is Finviz, where you can filter more than 60 parameters
      • We have created 3 stock scanners for you to use

    What is a Stock Screener?

    A stock screener is a software or online tool that allows traders to filter stocks based on specific preferences and criteria.

    find the best stocks
    The main function of a stock screener is to help traders narrow down the thousands of available stocks to a manageable list that matches the setting chosen by the traders using it. The several settings available in stock screeners reflect the different criteria traders might be interested in at any given time; they include fundamental and technical indicators such as price, volume, market capitalization, trading range, sector, financial ratios, and, sometimes, much more.

    What are the benefits of using a stock screener?

    The reason why the use of stock screener is so popular is the several benefits it offers. The following are only a few of many:

    Identifying Trading Opportunities

    The capacity to recognize possible trading opportunities is the number one and most important of the advantages of using stock screeners in day trading. By setting their preferred parameters according to their trading styles, strategies, and risk tolerance, traders can swiftly find stocks that meet their requirements and have the best potential for profitable price movements.

    For example, a trader can configure their stock screener to only show stocks that have a high relative volume, positive earnings growth, and prices above a particular moving average, and the result he would get is an immediate list of stocks that perfectly match those requirements. It is easy to see how this would give traders a limited number of well-selected possible trades to choose from. And who wouldn’t like that?

    ttp - a prop firm for stock traders

    Better Time Management Efficiency

    Another significant advantage of using stock screeners is the time they save!
    Instead of manually searching for stocks that fit their criteria, traders can take full advantage of the stock screener’s automated process. This is of course a benefit of great importance for those trying to improve their time management efficiency which, in turn, will allow for more time to be allocated to other important aspects of their trading strategies, such as conducting research, analyzing charts, or developing new risk management plans.
    By utilizing a stock screener, traders can quickly scan the market for potential trading opportunities and immediately spot stocks that meet their specific criteria. Furthermore, this efficient use of time allows traders to keep up with the market, stay ahead of the competition, and take advantage of time-sensitive price movements.

    Minimizing Emotional Biases.

    Although it should never be the case, many trading decisions are still frequently heavily influenced (if not dictated) by emotions. Fear of losing money, or FOMO (Fear of Missing Out), can impair any trader’s judgment and cause rash and unreasonable trading decisions. Stock screeners are another useful tool for reducing emotional biases.

    A stock screener looks at and compares data objectively, and this allows traders to ignore their feelings and make informed decisions instead of letting their emotions get in the way.

    news on finviz

    Want to try a great stock screener now? Go FinViz!

    As stock screeners go, FinViz is without doubt one of the best and most popular among traders.

    Just like one would expect of a quality stock screener, Finviz (Financial Visualizations) is a powerful tool that allows traders to quickly filter stocks based on their chosen criteria. It includes an extensive set of customizable features and – although it might take a little getting used to at first – a clear and well-organized interface too.

    One of the key features of Finviz is its advanced filtering capabilities. Traders can apply all sorts of filters based on fundamental metrics such as market capitalization, price-to-earnings ratio (P/E), dividend yield, and financial strength, as well as technical indicators like moving averages, relative strength, and volume.

    finviz heat map
    These filters allow investors to focus on stocks that meet their specific preferences rather than having to constantly monitor the entire stock market.

    Also, in addition to filtering by fundamental and technical criteria, Finviz allows traders to screen stocks based on sector, industry, and location. This is particularly useful for traders who want to concentrate their positions in specific sectors and industries or have a preference for stocks from certain countries in particular.

    One of the features that helps FinViz stand apart from many other stock scanners is its advanced charting capabilities.
    Users can access a variety of chart styles, including line, bar, and candlestick charts, and can overlay several technical indicators to aid in technical analysis.
    The interactive charts enable users to visualize price trends, support and resistance levels, and other important patterns and signals.

    Amongst other things, Finviz can also provide real-time data and news updates. Traders can access the latest market news, press releases, and SEC filings, for example, directly through the platform itself.  This way, traders can remain up to date with any developments that may affect their trades.

    …and there is more!

    Finviz also offers a range of additional tools and functionalities such as a portfolio tracker, backtesting, and a heat map.

    The portfolio tracker allows traders to monitor the performance of their investments, the backtesting feature enables them to test their investment strategies against historical data, and the heat map provides a visual representation of the market status and performance, allowing users to quickly identify stocks or sectors that are outperforming or underperforming.

    All in all, Finviz is a great stock screener. Its vast range of features and customization possibilities make it a popular choice among traders looking for an easy and quick way to research and identify potential investment opportunities.
    Why don’t you give it a try today?

    Simple Stock Screeners

    We have created 3 simple stock screeners for you to use on Finviz. You can just “copy/paste” them to your user.

    Small cap screener


    Earnings screener


    Short squeeze screener


    How to implement it

    Go to “Screener”

    Finviz screener
    Click on “Edit Screens”

    finviz screener

    Copy/Paste the screeners above

    All right traders, I wish you the best of luck and hope this helps.

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