Tips & Techniques to Use a Stock Screener to Find Winning Stocks

US stocks

Stock trading can be a rigorous procedure. But the most challenging aspect of it is to find stocks that are a win. When you begin trading stocks, you realize that there are thousands you can choose from. However, only a few of them prove to be worth investing in.

This is usually why a stock screener comes in handy now and then. For all those who don’t know, a stock screener is an equipment used to determine efficient stocks within some set parameters. It can help you shortlist certain stocks that match your expectations and help you achieve your desired results. 

Let’s learn more about it as we read. 

Tips & Tricks To Leverage Stock Screeners For Winning Stocks

1. Start With Ample Research

Sure, screeners for the stock market are here to help you find winning stocks, but you still need to keep up with your research. A stock screener is bound to give you potential stocks as per the parameters, but if you don’t conduct thorough research, you won’t know how to make the right choice among them. So, using screeners as a basic starting point is wise. Once you conduct your fair share of research, you can leverage your screeners to then amplify the chances of bringing desired results to you. 

2. Less Is More (Really)

You don’t have to go the extra mile to design your stock screeners. The simpler you keep it, the easier it gets for you to navigate it. So, when you design your screener, go by the concept of less is more. Simpler screeners also come with the benefit of better flexibility, which reduces the risks of inaccuracy as well. But if you still feel like you might require a more complex screener, you can start with a simpler one and go on to add more as per your parameters. 

3. Focus On The End Goal 

The main goal of building stock screeners is to achieve the output you desire. But many of us tend to go off-track by drawing our focus to the set parameters. But remember- you could do up with a highly-technical stock screener, and it could still fail you if it doesn’t contain actionable stocks. So, keep your end goal as the major focus on moving ahead with the same. 

4. What’s Your Setup?

Before you get the screen ready, take some time to define the screen. Analyze how you imagine the ideal setup to be. So, don’t jump on to using the scanning feature and using it to look for prospective setups until you have the ideal setup defined in your head. 

5. Map Out Your Timeline

Certain screeners for Indian stocks help make changes to the timeframe that each screen parameter has set for itself. But considering the strength of your strategy, you might require more time to implement it. That is why it is best to set up a modified timeframe as per your strategy and goals. This is when you can be sure that the parameters are working as per the same timeframe. 

The Bottom Line

Stock screeners are no magic pill. So, if you want to select your stocks mindfully, you’ve got to keep following these rules until you achieve the final output. Conduct your research extensively and then narrow down your options mindfully. 

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