Stock screeners can sound like an important part of your investment management process if you are fairly new to investing in stocks, but not many people even know what they are. While they can be useful in helping you manage your portfolio, it is important to know if they are actually right for your needs.
But what are stock screeners, and how do they help?
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What is a Stock Screener?
A stock screener is an advanced analytical tool that helps you search for equity assets to invest in. They provide a way for investors to scour through hundreds (or even thousands) of stocks to find the ones that are most worth their time and money, giving you a range of ways to filter them down further as needed.
These can be incredibly powerful tools for serious investors, but they are also very accessible to newer traders who might want more guidance on which stocks are available to them. With home trial and error, it is not hard to pick up how a stock screener works.
How do Stock Screeners Help?
Even with access to tons of data about stocks and markets, it is hard to find the ones you want to invest in, especially when the sheer amount of data available can overwhelm even the most prepared investor.
A stock screener helps you find the information you need to make a decision in a much shorter amount of time by helping you filter the data based on the parameters you are interested in.
This basically makes it much more convenient to hunt down specific kinds of stocks and allows you to tailor your list of possible stock choices to only ones that suit your needs. This also means that you can exclude any stocks that simply are not interesting to you, whether that is due to their value or some other factor.
Do Investors Really Need Stock Screeners?
Stock screeners can be incredibly useful if you are serious about your investments and want to spend as little time as possible hunting down stocks and information. If you do not have as much time to dedicate to sifting through tons of information to find what you want, a stock screener is a great way to save time on that.
While they can be intimidating for people who have not used them before or who are brand new to stocks, they are an incredibly easy tool to learn if you really want to use them. A stock screener gives you a way to search for stocks that fit your needs, no matter what they are.
For newer investors, a stock screener is a great way to get your feet wet in this area of the market without having to do tons of heavy work yourself. Stock Screeners can take the legwork out of your research and help you find stocks based on the criteria you are most interested in. This can save you a lot of time if you are still new to investing as a whole.
Finding a good premarket stock screener is not necessarily that difficult, even if you’re very new to the idea. The important thing is to go for an affordable (or free) option that suits your needs and offers the kind of quality you are looking for.