What are Stocks Screeners and How to Work With Them
Stock and cryptocurrency screener is an analytical service that helps you filter assets by specified criteria and find the most attractive investment positions:
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Finviz is the best screener for the US stock market
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TradingView is the best screener combined with trading tools
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CoinMarketCap is the best screener for cryptocurrencies
A stock and cryptocurrency screener is a tool that allows traders to quickly and efficiently find suitable trading instruments. It provides traders with access to an extensive database of stocks, cryptocurrencies, and other financial instruments, allowing them to filter them by various criteria such as price, trading volume, technical analysis, and fundamental metrics.
Stock and cryptocurrency screeners can be used by traders of all levels of experience, from beginners to experienced traders. They can be useful for finding new trading opportunities, identifying potential risks, and tracking already open positions.
How do market screeners work
Stock and cryptocurrency screeners typically work on the same principle. A trader sets the filtering criteria they want to use, and then the screener returns a list of instruments that meet those criteria.
Filtering criteria can be anything. For example, a trader can set the following criteria:
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Price: minimum or maximum price, price range
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Trading volume: minimum or maximum trading volume
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Technical analysis: indicators, patterns
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Fundamental metrics: company financial results, industry news
Once the trader has set the filtering criteria, they can view the list of instruments that meet those criteria. The trader can sort the list by various parameters such as price, trading volume, and returns.
Pros
Stock and cryptocurrency screeners have a number of benefits that can be useful for traders of all levels of experience. Here are some of these benefits:
• Efficiency: Stock and cryptocurrency screeners allow traders to quickly and efficiently find suitable trading instruments. This can save traders a lot of time and effort
• Scalability: Stock and cryptocurrency screeners can be used to analyze a wide range of instruments, including stocks, cryptocurrencies, futures, options, and others. This allows traders to find opportunities in different markets
• Flexibility: Stock and cryptocurrency screeners offer a wide range of filtering criteria that can be customized to meet the individual needs of the trader. This allows traders to find instruments that match their specific trading strategies
Here are some specific examples of how stock and cryptocurrency screeners can be used by traders:
• New trading opportunities: Stock and cryptocurrency screeners can be used to find new trading opportunities, such as stocks that are trading below their fair value or cryptocurrencies that have growth potential
• Identifying potential risks: Stock and cryptocurrency screeners can be used to identify potential risks, such as stocks that are overvalued or cryptocurrencies that are subject to high volatility
• Tracking already open positions: Stock and cryptocurrency screeners can be used to track already open positions, so that traders can identify potential problems in a timely manner
Stock and cryptocurrency screeners are a powerful tool that can help traders improve their results. When used correctly, they can become an indispensable trading companion.
Here are some additional benefits of stock and cryptocurrency screeners:
• They can help traders stay up-to-date on the latest market news and events
• They can help traders identify trends and patterns in the market
• They can help traders make more informed trading decisions
Overall, stock and cryptocurrency screeners are a valuable tool that can be used by traders of all levels of experience. They can help traders save time, find new opportunities, and identify potential risks.
Cons
Stock and cryptocurrency screeners have a number of disadvantages that should be considered when using them. Here are some of these disadvantages:
• Dependence on filtering criteria: The results of screeners depend on the filtering criteria that the trader sets. If the filtering criteria are chosen incorrectly, the results of the screener may be unreliable
• Lack of information: Stock and cryptocurrency screeners typically only provide basic information about instruments, such as price, trading volume, and fundamental metrics. For making sound trading decisions, traders may need additional information, such as technical analysis and news data
• Unrealistic expectations: Stock and cryptocurrency screeners cannot guarantee profit. Traders should understand that using screeners is not a panacea and that they should always make their own trading decisions
How to use a stock and cryptocurrency screener
To use a stock and cryptocurrency screener, a trader must sign up for an account on the website of a broker or financial services provider that offers this tool. After signing up, the trader can configure the filtering criteria and start using the screener.
Here are some tips for using stock and cryptocurrency screeners:
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Start with simple filtering criteria: don't try to configure too many criteria at once. Start with simple criteria such as price and trading volume
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Study the filtering results: carefully study the filtering results to make sure they meet your trading strategies
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Use multiple screeners: don't limit yourself to one screener. Use multiple screeners to get a more complete picture of the market
Best stock brokers
Conclusion
Overall, stock and cryptocurrency screeners are a useful tool, but they cannot replace the common sense and experience of a trader. Traders should use screeners with caution and understand their limitations.
Here are some tips that will help traders avoid the disadvantages of screeners:
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Carefully study the filtering results: Do not rely on screeners blindly. Always study the filtering results to make sure they fit your trading strategies
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Use multiple screeners: Do not limit yourself to one screener. Use multiple screeners to get a more complete picture of the market
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Don't forget about other factors: Stock and cryptocurrency screeners provide only basic information about instruments. Don't forget to consider other factors, such as technical analysis and news data, when making trading decisions
When used correctly, stock and cryptocurrency screeners can be a powerful tool that can help traders improve their results.
FAQs
How do stock screeners work?
Stock screeners work by filtering stocks based on your criteria. For example, you might screen for stocks that have a price-to-earnings ratio of less than 15, a market capitalization of over $1 billion, and a dividend yield of over 3%.
How do you use screener to find stocks?
To use a stock screener, simply enter your criteria and the screener will return a list of stocks that meet your requirements. You can then start researching the individual stocks to find the ones that are the best fit for your investment goals.
Are stock screeners worth it?
Stock screeners can be a valuable tool for investors, but they are not a magic bullet. It is important to remember that no screener can guarantee profits. However, screeners can help you save time and narrow down the universe of stocks to a manageable group.
What is the best stock screener for day trading?
There is no one-size-fits-all answer to this question, as the best stock screener for day trading will depend on your individual needs and preferences. However, some popular stock screeners for day trading include Finviz, TradingView, and Thinkorswim.
Glossary for novice traders
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1
Cryptocurrency
Cryptocurrency is a type of digital or virtual currency that relies on cryptography for security. Unlike traditional currencies issued by governments (fiat currencies), cryptocurrencies operate on decentralized networks, typically based on blockchain technology.
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2
Day trading
Day trading involves buying and selling financial assets within the same trading day, with the goal of profiting from short-term price fluctuations, and positions are typically not held overnight.
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3
Robo-Advisor
A Robo-Advisor is a digital platform using automated algorithms to provide investment advice and manage portfolios on behalf of clients, often with lower fees than traditional advisors.
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4
Investor
An investor is an individual, who invests money in an asset with the expectation that its value would appreciate in the future. The asset can be anything, including a bond, debenture, mutual fund, equity, gold, silver, exchange-traded funds (ETFs), and real-estate property.
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Volatility
Volatility refers to the degree of variation or fluctuation in the price or value of a financial asset, such as stocks, bonds, or cryptocurrencies, over a period of time. Higher volatility indicates that an asset's price is experiencing more significant and rapid price swings, while lower volatility suggests relatively stable and gradual price movements.
Team that worked on the article
Alex Smith is a professional day trader for a proprietary trading firm within the foreign exchange (forex) and crypto markets. His area of expertise is day trading and swing trading within the 15min-4hr time frames for both the London and NY open.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).