Stock Screening Guide: Use the Power of Scanning Tools to Strengthen Your Intraday Activities

Everyone is aware of the potential of making a profit through stock markets. Rewards are substantial, but you can lose your lifetime savings in one day. And it applies to all levels of traders, from beginners to seasoned. Scrolling through thousands of stocks on the market is impossible, and selecting the best ones is even harder. How do you trade, then? Although the stock options are innumerable, you can identify ones based on your investing style or objective with the help of online tools across different exchanges.

Scanning stocks

Traders can use fundamental or technical stock scanning practices during analysis to minimize or eliminate losses and book profits. The standard principles include earnings per share, price to earnings, debt to equity, price to book, etc. Earnings Per Share stands for the company’s profit-making ability per share. A growing company will have a high EPS. Price-to-Earnings ratio indicates the possibility of a particular stock to grow or fall. 

Some use the D/E ratio to understand what a specific company owns or owes. Any entity with a high debt-to-equity ratio can be a risky investment. However, it can impact some industries more than others. The price-to-book ratio helps you compare the company’s asset value with the market price. A stock with a price-to-book ratio of less than 1 may reflect undervaluation. There are more such metrics one can apply. Can you manually check one or more of these metrics in real time or before the market opens? It’s overwhelming and almost unrealistic. You cannot obtain a precise or close estimate easily. However, you can use a robust stock scanner to perform your task. Feed your options, and it will show data based on the chosen trading criteria or fundamentals.

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Using stock screeners 

While the functionalities of a tool can vary, the strongest of them can generate deep insights within seconds, which may not be obtained otherwise, even after conducting manual research for weeks. However, applying the right filters based on your investment type and criteria is crucial. Some people check market caps of large to small companies along with their dividend yield, Price-to-Earnings ratio, return on equity, etc. Even the choice of stocks by industry also matters, such as energy, tech, consumer goods, and healthcare. Typically, growth investors want to learn about options that show excellent earnings potential and revenue growth. Value investors chase stocks with healthy balance sheets and low Price-to-Earnings ratios. What investor group do you belong to? Know your investing style so you can decide on the types of metrics that meet your goals. 

It’s just a hint of what a stock screener can do for you. Before choosing a paid version, try a free tool to assess its utility for your trading habits. Paid versions can considerably widen your investing horizon while reducing risks. Still, getting used to it is crucial. You can check multiple stock options daily with different metrics if you opt for a paid one. So, approach it according to your needs. After all, you want to secure and grow your investment. You can check out service providers like Stock Market Guides for more knowledge.

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