Friday, June 18, 2010


Stock screening  is a powerful basic research tool. Gone are the days when you have to check through piles of newspapers, journals; making research for days and weeks looking for credible stocks to add to your portfolio. I call stock screening a powerful tool because within minutes, you can find good stocks you can buy. You can be your own stock analyst by leveraging on the power of stock screener. This tool will save you time and money giving you an effective analytical method.This is because, you can obtain this service for free across the internet. Don't worry i will give you the links on where to find stock screener free tools just read on. Some brokers allow their clients to use this tool for free.

There are categories which you will need to look into while screening your stocks:
  1. Stock Price: this is where you enter the price range of the stocks you want to research. Assuming you want to research across penny stocks, knowing that penny stocks are stocks with prices from $5 and below, you will simply enter the range of $0 to $5 to get the list.
  2. Volume: you can use this select the stocks that are trading at good volume at the moment. Volume is a very important factor to consider and it is mostly used by technical stock analysts. By picking a good range in the volume, you cut off those stocks with low trading volume.
  3. Fundamentals: under fundamentals you find stocks at your specified P/E ratio and market capitalization. Assuming you type in P/E ratio from $1 and above, you have been able to cut off stocks with negative P/E ratio. Market capitalization tells you the worth and the class a company stock falls into. Whether it is small cap, medium cap or a large cap stock. You can get this by multiplying their number of shares with their current stock price. Buying stocks within the small cap and medium cap is good for long term strategy because, it shows that the company still have enough room to grow (that is if they are doing well),
  4. Exchange and Industry: i like this part because i like playing with energy and technology stocks. By specifying the particular industry you will like investing will streamline your search. The exchange is the market where the stock is traded on, it can be NASDAQ, NYSE, AMEX or All the exchanges. 

You can get this free Stock Screening tools from MSN, YAHOO, MORNINGSTAR and so on. With these tools, stock research has never been easier.

Below, you will find incredible books dealing on stock screening, buying them will give you an advantage to know more about stock screening and you can fire your stock analyst or even open your own stock analyst company.

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