Building a profitable portfolio is easier if you have the right trading scanner. It screens tens of thousands of data to make intelligent recommendations. Hence, it’s a huge time-saver while also increasing the chances of success.
If you’re not yet convinced that a stock trading scanner will help, read on. Let’s talk about its benefits. More importantly, we’ll look at some options available.
What Makes a Stock Screener Ideal for Day Trading?
In a nutshell, a stock screener or scanner is exactly what the name implies. It’s a tool or software that monitors the trading market. In turn, it will provide recommendations on the best stocks with promising returns.
These recommendations must meet specific parameters. You have the option to configure these metrics, so they’re in line with your trading goals. Alternatively, they can also be preset, which will depend on the specific software you’re using.
The biggest selling point of a scanner for stock market is that it eliminates the need to manually assess data. You don’t have to read the latest news or look at charts to evaluate historical performance. The screener will do these things for you.
It’s like having a friend who’s an expert in trading. The stock option scanner will comb through massive data, so you don’t need to. You can spot potential opportunities in an instant.
Day traders will appreciate how they can become more efficient with the help of stock screeners. You may not have the luxury of time, so the right scanner can speed up things without compromising outcomes.
How to Optimize Stock Screener Settings for Day Trading?
While having the best screener for day trading can level up your investments, a proactive approach is essential. One way to do this is by optimizing the settings. Doing so can depend on the specific platform you’re using.
Start by Identifying Your Goal
Be as specific as possible when defining your goals. For instance, you can state the timeframe that you want. This way, the screener can help you formulate better investment strategies by choosing stocks that suit your timing.
Set up The Right Filters
A real time stock scanner offers plenty of filters, so you can customize results based on your needs. For instance, you can filter depending on the average trading volume. This will help you analyze the liquidity of the asset.
Test and Modify
It’s not enough that you set the filter once. For optimal results, test it through several trades and analyze the results. If they’re not what you initially expect, modify the parameters and test again. Do this until you find the optimal setting.
Why Real-Time Stock Scanners Are Essential for Traders?
Are you looking for more compelling reasons to use a scanner stock market? Below, we’ll list some benefits that will help you decide:
- Save Time: This is perhaps the biggest benefit of using a real time stock scanner. No more need to go through the financial details of every company you’re interested in. Best of all, you can also find under-the-radar but promising assets.
- Stay Updated: Using a real-time stock screener means you don’t have to miss out on the latest happenings. Even if you don’t have time to keep up, the stock market news scanner will do so for you. Hence, you can decide considering current events.
- Eliminate Biases: At times, investors resort to emotional decision-making. With the right screener, you can prevent biases in your investments. This allows more logical decisions based on current events, company performance, and other fundamentals.
- Allow Customization: The flexibility of a stock scanner is another great advantage. As a user, you can customize the parameters. You can change the filters of the settings depending on individual needs and preferences.
- A Tool for Learning: Especially for new traders, a real time stock scanner can also be an educational tool. This is a great way to analyze the overwhelming market. In time, it can help you become a better trader.
Finding Trading Opportunities with Stock Pattern Scanner
Make the most of your real time stock scanner. This section looks at some of the best strategies to find promising investment opportunities.
Use a Float Screener
First, let’s define what a float is in stocks. Basically, float refers to the number of shares that the public can trade. Many people believe that assets with a low float are better because they can make huge gains once their demand rockets.
To find the right assets, you need to use a stock float screener. Like with a normal scanner, you can mix different parameters for the best results.
Keep an Eye on High Probability Patterns
Not all stock patterns are the same. It’s best if you can focus on those offering a high probability, such as ascending or descending triangles. These patterns have a higher rate of success, which can increase the chances of being profitable.
Consult Multiple Patterns
The more patterns you consult, the higher the chance that the trading signals are reliable. Looking at a single pattern can provide you a tunnel vision. On the other hand, having multiple patterns can widen your parameters.
Mix With Fundamental Analysis
Using stock patterns is a type of technical analysis. If you want a more thorough look at the market, combine it with fundamental analysis. This requires looking at financial statements and market reports, among others.
The Best Stock Scanner for Monitoring Market News
Now that you reached the end of this post, you may be curious — what is the best stock screener for day trading? It’s hard to name just one as there are several choices.
If your goal is monitoring the market news, one of the top options to consider is ThinkOrSwim by AmeriTrade. The platform comes with a Scan tab, which is where you can set parameters. It has a user-friendly interface, which is what makes it even better.,
TradingView is another option you might want to consider for a real time stock scanner. The website has a dedicated News section, which is where you can read to know the latest on different businesses and sectors. You can create scans based on this news.