How can you filter stocks? If you are a trader or an investor, then it is beneficial to be able to filter good stocks from the thousands of choices that are out there. There are endless products available that can filter stocks for you. Here are a few things to consider before choosing one.
Stock Screeners
A stock screener is a software program that, as the name implies, filters stocks based on a set of criteria selected by you. There are nearly endless choices of screeners to use. Some are free, and some charge a fee. Basic screeners will have some predetermined criteria that you can filter. More advanced screeners will allow you to screen stocks by nearly any set of variables that you choose.
How to Screen Stocks
In order to effectively use a stock screener, you must know what you are looking for. Many screeners allow you to search for a nearly endless combination of criteria. So much so that it can become overwhelming.
Once you set the proper search criteria, searching for stocks is straightforward. Just be aware that screeners have limitations, and a screener doesn’t replace your own research.
Screeners operate on quantitative data only, so once your screener gives you a list of stocks that fits your criteria you will have to do your own research to see if the recommended stocks fit your investment goals.
A stock screener can help narrow down the field for you, and they can point you in the right direction, but just make sure to do your own vetting of any security that you might invest in.
Conclusion
How can you filter stocks? There are literally thousands of stocks that you can potentially invest in. No one has the ability to research all of them, so a stock screener can help narrow the choices. By plugging in the criteria that you want, the screener will give you potential investment choices. Just be sure to do your own research and not blindly invest in the stocks that the screener suggests.
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Writer and Investor. Based in the Pittsburgh, PA area, Brian holds full-time employment as a Warehouse Manager for an electronics firm. Brian enjoys wealth building, investing, gardening and the great outdoors. Brian holds a B.A. in Environmental Studies from the University of Pittsburgh and an MBA from Robert Morris University.