Stock screeners are tools that let you search through thousands of stocks to find the ones that fit your trading strategy. But different traders target different types of stocks. Finding the right stocks to fit your strategy starts with your criteria for identifying the right stock screener.
You’ll need different criteria to pick a good fundamental stock screener vs. a technical stock screener. Like many things in trading, this is 90% preparation.
What kind of criteria should you have when choosing a stock screener? Let’s dive in!
What Is a Stock Screener?
A stock screener is a tool that lets traders filter stocks based on specific criteria and preferences. A stock screener helps you find the stocks that match your trading strategy.
Most stock screeners are part of an overall trading platform, alongside charting tools and other features.
A good understanding of the tools of the trade always helps. Read my article on the basics of stock screeners to learn more.
How Do Stock Screeners Work?
Stock screeners work by filtering stocks according to different metrics to create a list. A top screener like StocksToTrade has dozens of different parameters to tailor the results to your goals.
From there, you can dive deeper into the stocks you screen and see whether they’re worth trading.
StocksToTrade is a screener made for traders by traders. I don’t know how I’d trade without it. Take it for a spin and see how it changes the way you trade. Get a 14-day StocksToTrade trial for just $7!
Uses of a Stock Screener
Like old-time gold prospectors, you use a stock screener to screen out the stocks you aren’t looking for…
Hopefully you keep the gold in!
You can also create custom stock screens to further refine your search.
This isn’t all that a stock screener can do. Stock screeners usually come bundled with trading platforms, so you might find other features like paper trading.
Charts are a must-have.
Some platforms also integrate with brokers so you can trade directly through them.
Different platforms offer different features, so shop around and find the platform that caters best to your needs.
Importance of Using a Stock Screener
Do you want to become a self-sufficient trader? Using a stock screener is a MUST.
How else are you going to comb through the 17,000 publicly-traded stocks available to U.S. traders? Looking for trades without a stock screener will just lead to random trading.
When you start trading a bunch of random stocks and strategies at random times — you’ll get random results.
A stock screener lets you find the stocks you want quickly, helping you spot potential trading opportunities and capitalize on them.
Different trading methods need different stock screeners. Check out my picks for the best stock screeners for swing trading and day trading. If you don’t want to lock yourself into a strategy, check out my article about the best overall stock screeners.
Advantages of Using a Stock Screener
The main advantage of using a stock screener is increased response time. You can save multiple stock watchlists so you can keep tabs on lots of stocks simultaneously.
Most powerful stock screeners are also heavily customizable, meaning you can tweak their filters according to your needs. This means you have the freedom to screen for the stocks you want, whatever the criteria may be.
Many screeners also offer pre-built filters. They’re made by traders and other experts for you to use right out of the box or modify according to your preferences. Either way, you won’t have to create filters from scratch.
A good example of a stock screener with all of the above features is StocksToTrade. It’s insanely customizable and has pre-built filters from expert traders.
But there’s more to StocksToTrade. It has Oracle, an algorithm-based chart analyzer. It’s a cool bit of technology that examines the day’s most tradable stocks to give you actionable trade alerts. Essentially, it handles all the technical analysis for you.
Want to see how it works? Sign up for NO-COST Oracle trade alerts now!
How to Choose the Best Stock Screener
Everybody’s got different definitions of “the best stock screener,” so there’s no one foolproof way to pick the best stock screener…
And there are a lot of stock screener options out there!
What you can do is create a list of criteria and find the stock screeners that meet them. Everybody’s got different things they need out of a stock screener, so make sure these criteria fit your needs.
Looking into reviews and doing some extra research also helps. Just Google websites with stock screener reviews to get a better idea of what a screener is capable of.
Best Stock Screener Criteria
So, what are the criteria you need to be the “best” stock screener? Here are several examples.
You can order these in any way you like based on your needs. You can even add or remove criteria if necessary. For example, you might be concerned with pricing and want an affordable screener — feel free to plug them into this list.
Now let’s dive in…
Screener Options
Your screener should have a variety of options. This will help you find stocks that match your trading strategy.
Customizable Screeners
Stock screeners live and die by their screening criteria. Your chosen screener platform should be customizable enough to meet your trading needs.
And better yet — save them for your next scan!
Built-in Screeners
Aside from customizable screeners, a good stock screener should come with built-in screeners. Look for trader-built scans like the ones that come standard with StocksToTrade.
These can either be used as-is or further modified to suit your trading needs. Either way, they can give you a good starting point.
Powerful Trading Platform
Many stock screeners are part of an overall trading platform. A powerful trading platform should include dynamic charting, a robust news scanner, and other tools to take your trading to the next level.
The most powerful trading platforms are traditionally desktop-based. Web-based platforms are catching up.
Some of the mobile apps are even pretty good… but stick with the home setup when you can.
Broker Integration
Some stock screeners are tied to certain online brokerages. Others let you integrate with your broker so you can trade without leaving the screener platform.
This saves time and lets you capitalize on trading opportunities faster.
Real-Time Data
Seconds count in the market, so the 15-minute delays that some scanners have can really hurt. Be sure to look for a screener with timely data updates so you won’t miss actionable trade opportunities.
Dynamic Charts
Charts are one of the most basic tools of a stock trader’s trade. They help you understand price action and make better trades.
A high-quality stock screener should have multiple charting methods, so you can use whichever method you prefer.
Variety of Indicators
I’m not a fan of overcomplicating your charting…
You don’t have to use all the indicators available on a stock screener, but having a good variety helps. Getting a stock screener with various indicators gives you a lot of options when screening and charting.
Limitations
A stock screener is key to your trading journey — it’s one of your most important weapons. Like any weapon, you need to know its strengths and weaknesses.
Identify your screener’s limitations and either find a way to get around them, or use another screener that covers these shortcomings.
Stock Screener Parameters
Different traders use different parameters and criteria in their stock screens. It all comes back to how you trade and what your trading goals are.
Screening stocks by technical criteria is a niche need, but the most powerful stock screeners should be able to do it. Check out some of my favorite technical stock screeners.
Stock Screener Strategies
Every trader has a different strategy for stock trading. That means their stock screener strategies should also differ.
How do you find a strategy that works for you? Experience. When you know what you’re looking for, it gets easier…
Whatever your strategy, follow these basic steps:
- Decide on a trading strategy. This should inform what stocks you’re scanning for, not the other way around.
- Learn your screening options. Remember how I said 90% of trading is preparation? Well, this is part of it.
- Keep it short and simple. Did you watch that first video? Between price, volume, news, float, and percent gain, it features most of the screening criteria you should be relying on.
- Keep refining. Did your search for stocks with earnings in the past week give you 500 results? Start narrowing it down by putting on more conditions.
- Save the custom screens you’ll use again. Once you figure out your strategy, bookmark it!
Finding the strategies that work for you is an important part of a trader’s growth. So keep trading and find the strategies and setups that give you the best results.
Stock Screener Tips
Here’s my best stock screener tip…
Fool around. Start experimenting.
I’ve got a lot of resources like this video…
But the way you arrive at your own strategy is through your own experience.
Final Thoughts
Choosing the best stock screener is a challenge because there’s no one-size-fits-all answer. What you can do is make a list of criteria and find the stock screening platform that fits your needs and trading strategies.
A stock screener that fits your needs helps you make better-informed trading decisions, potentially leading to better trades. But keep in mind — it’s not a marriage, so you don’t have to choose just one stock screener. Try out multiple different ones and stick with the ones that work.
Here’s another stock screener recommendation for you: Matt Monaco’s Alpha Scanner.
Matt was a software engineer, and now he’s a millionaire trader. He made Alpha Scanner from scratch with his trading style in mind, and he’s packed it with trade alerts, live mentoring, and so much more.
Can Matt’s Alpha Scanner give you an edge in trading? Find out by signing up to join the next Alpha Scanner LIVE broadcast!