The 4 Best Stock Screeners for Day Trading
As a day trader, it’s important to find the stocks that best align with the criteria you’re looking for. Using a stock screener allows you to narrow down your selection of potential trades to a smaller number of stocks that’s easier to manage for the next trading session. Using stock screeners effectively can help you make strategic trades. Use this guide to learn what a stock screener is, the best stock screeners for day trading, and how to effectively use a stock screener as a day trader.
- A stock screener refers to software that allows you to search for stocks with user-selected criteria. Day traders use stock screeners to narrow down their list of potential stocks that have the characteristics they want in a stock.
- Whereas scanners monitor stocks with real-time data, stock screeners present information without the use of real-time data.
- Use stock screeners once per night, day, or over the weekend and narrow down your stock selection. Focusing on one to three stocks during a trading session can help you make the most of your time as a day trader.
What Is a Stock Screener?
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A stock screener is software that allows you to search for stocks with user-selected criteria. Day traders use these screeners to narrow down their list of available stocks that have the characteristics they want in a stock. For example, if a trader wants a certain stock price or volatility, they can use a stock screener to filter their list to the stocks that best match what they’re looking for. Essentially, the software filters out irrelevant stocks on the U.S. exchanges based on the criteria the user inputs into the screener. In doing so, it leaves the most relevant stocks that meet the day trader’s requirements.
You can filter stocks using various criteria, such as:
- Stock price.
- Recent performance.
- Trading volume.
- Chart patterns.
It’s also worth noting that stock screeners and scanners have different purposes. Whereas scanners monitor stocks with real-time data, stock screeners present information without real-time data.
Benefits of Using a Stock Screener
When you use a stock screener, you’re presented with several advantages that can make you a better day trader. Understanding these benefits can help you determine if this tool is ultimately worthwhile. Here are some of the benefits you get from using stock screeners:
- Saves time: When you use a stock screener, it sorts all the information for you and presents you with only the relevant stocks that have the characteristics you’re looking for. Not only does this save you a lot of hassle, but it also saves you a tremendous amount of time that you can use to work on your trading strategies.
- Removes behavioral bias: Using a stock screener allows you to view other stocks that you may not have previously considered based on your trading habits or personality. While you may feel inclined to focus on a certain stock, stock screeners show you data that can support your thought process or alert you to errors in it.
- Helps you find new stock opportunities: In many cases, using a stock screener presents you with a search list that consists of stocks you may not have previously considered. When you discover these investments, you’ll find greater opportunities as a day trader. Unfamiliar stocks are often undervalued, which gives you the chance to make a worthwhile investment.
Best Stock Screeners for Day Trading
As a day trader, you have many stock screeners to choose from. While some offer their website’s features for free, others charge a premium, which often provides you with additional features to help narrow down your stock selection. Here are some of the best stock screeners for day trading:
Though using this screener takes some practice, it’s ultimately worth it given the power it possesses. Not only can you choose from pre-existing stock screens, but StockFetcher also lets you make your own. This stock screener allows you to combine a wide variety of filters and criteria to find the stock you’re looking for. While you can view up to five high-quality stocks with the free version of StockFetcher, the upgraded version lets you see all of your search results.
When you use ChartMill, you can browse a variety of stocks based on criteria like price, performance, and volume. It’s free, and it’s also user-friendly. Unlike other stock screeners, ChartMill gives you 6,000 credits per month that continue to add up. When you run the scanner, it costs you around a few hundred credits. For most users, the 6,000 credit allotment is more than enough. If you happen to run out of credits, you can use the site with limited functionality, buy more credits, or upgrade to an unlimited plan.
With thousands of possible filter combinations, you won’t be disappointed with Finviz. This free stock screener has a user-friendly interface, and it breaks everything down into three sections: Descriptive, Technical, and Fundamental. When you insert the criteria you’re looking for, Finviz provides you with stocks that align within these sections. You can get new information on each stock when you adjust your view on the site. Finviz provides you with 14 different views, including financial, technical, valuation, and charts. Each provides you with a new perspective and the information you need to determine if it’s a stock you’re ultimately interested in. Since it uses delayed data, it’s best to screen your stocks at night for the next day.
If you like complex analytics, this one’s for you. Popular for both U.S. and Canadian stocks, Stock Rover provides you with a comprehensive list of parameters, including both basic filters and those based on performance to make your search easier. This screener allows you to view stocks that are nearing highs or lows during various times of the day, and you can also find stocks that show a price momentum. Stock Rover also lets you create custom portfolios, watch lists, and screens as an added perk. If you want more specific search results, use the site for backtesting or to create equations that allow you to combine various filters into a mathematical equation.
While all users can take advantage of the site’s various features, you get more access as a paid user. Features you get as a paid user include portfolio filters, alerts, and data exporting. Overall, Stock Rover is a popular choice for day traders who use advanced trading strategies since it uses data-driven needs results and is more complex than other stock screeners in use today.
Using a Stock Screener Effectively
While you could perform an abundance of research as a day trader, it’s important to make wise decisions in regard to your time. To avoid feeling overwhelmed, use stock screeners once per night, day, or over the weekend. Then, find some stocks that you’re interested in as a day trader. Once you’ve made your selection, focus on one to three stocks for the next trading session. Not only does this save you the time you would have spent continuously searching for stocks, but it also ensures that you’re ready to buy or sell at the most opportune times.
Now that you know how this trader tool works and what the best stock screeners are, find one that suits your interests. Consider whether you’re fine with a free stock screener or if it’s worth it to pay for a premium plan and get started screening today.