You leave bed feeling renewed and prepared to accomplish your daily objectives. Picking the stocks that will guarantee your fair share of the stock market returns is one of the objectives set for the day. You start your search by scrolling through the index and looking at each stock’s fundamental, technical, and descriptive information. After spending the day, just half of your goals were completed.

Even though the Nigerian stock market index still has hundreds of stocks that need to be examined, you are already worn out, and your objectives still need to be met. Many people dislike the aspect of investing that involves looking for a good stock. It can be intellectually and physically demanding because many elements must be considered before approaching an appropriate stock. You’re reading the appropriate article if choosing the best stocks seems like a daunting undertaking to you. This article will provide the tool you need for your investment journey. Discover what this tool is and why you need it by reading about it.

What Key Tool Should Every Investor Have in Their Toolbox?

A stock screener is necessary. The stock screener uses cutting-edge automated trading tools and many filters for backtesting. Pre-configured layouts might help traders and investors get off to a good start. As they gain more knowledge, traders and investors might add their own criteria to their screens.

When you enter your selection criteria, a stock screener compiles a list of stocks and eliminates them. After entering your desired traits, the stocks still on the list meet your targets.

The remaining stocks can then be used to make investing selections, or you can carry on your research to find out which of the remaining stocks will help you achieve your objectives.

Why Would An Investor Need A Stock Screener?

To Narrow Your Search

As previously stated, a stock screener is a crucial tool that assists you in removing hundreds or thousands of stocks based on your needs, which is the tool’s primary goal. You may make smarter judgments and reduce your risks of choosing the incorrect stock by concentrating on a few stocks.

To Save You Energy and Time

Why spend all day looking up stocks when you can just spend a few hours? Your stock research will take much less time and effort if you use the stock screener.

It Facilitates Better Watchlist Creation

Consider visiting the store with a list of things you want to buy. Food and non-edible things are bundled together when you arrive at the grocery store. Finding the places to purchase the things on your list becomes challenging.

However, it becomes less stressful if each part contains goods with some characteristics, such as having a division for beverages, pastries, spices, perishables, etc. Each section categorizes items that share some characteristics. You’ll be able to complete everything on your list as quickly as possible.

In the stock market, a stock screener aids you in doing this by quickly compiling a better watchlist of only the stocks that meet your requirements. Instead of dealing with many stocks, you spend more time on a stock that fits your investing style.

Find Stocks that will Perform Well in the Long Run

Investors frequently use stock screeners to find stocks likely to do exceptionally well over the long term. An active trader will likely employ stock screener tools to find potential setups for short-term trades. People may employ numerous filters. The number of stocks displayed will decrease as the number of filters increases. The stock screeners enable users and investors to quickly assess several stocks. This tool will assist you in locating and removing equities that do not satisfy an investor’s or user’s needs while emphasizing those items that fall within the previously established parameters.

The stock screeners may aid users’ trading techniques. All trade entry and exit points must adhere to the norm. The parameters may include, among other things, the entrance ticket size, a stock filter, and particular price triggers. Users can predict future performance using historical data, such as earnings, projections, and indicators.

Understanding how to establish the stock screener is crucial for utilizing it correctly since the incorrect configuration will result in selecting the incorrect stocks and vice versa.

The setting is merely a guide for how the stock screener should operate. For instance, the world of technology has made travelling to an unexpected location simpler than ever. To use your GPS (Global Positioning System) to guide you to your location, you only have to switch it on. Only if you precisely infuse the correct address will you be able to reach the intended location. The incorrect address will just lead you to the incorrect location. Because you entered the wrong location, the GPS is still accurate even though you got everything wrong.

By utilizing market capitalization, P/E ratio, earnings per share (EPS), sales growth, current ratio volume and volatility, price, dividend yield, and other technical and fundamental indicators, stock screeners enable investors to look for stocks that satisfy specific criteria.

Therefore, utilizing a stock screener is fantastic and can help you build wealth through stock investments. However, the tool will only be beneficial if you know how to configure it to suit your investing style, method, and strategy. This statement implies that the results you get depend on the circumstances. Therefore, knowing why you’re looking for such things and what kind of outcomes to anticipate is crucial.

Adding Up

Building wealth is the main objective of investing, and you must choose wisely. Your investments determine your overall stock market returns and potential for profits or losses. A stock screener is one tool that every investor or trader needs to locate and assess the many stock alternatives that are available to them.

Thanks to stock screeners, thousands of stocks can be easily curated based on your precise criteria. It’s crucial to take some time to establish your investment objectives and approach before attempting to select the ideal stock screener. You can more accurately determine the characteristics required for a screener if you have a strong foundation in those two areas.

However, you shouldn’t rely solely on any stock screener.

Even if you shorten the list to a few stocks, resist making a blind investment in each one because it matches a few requirements. Spend some time investigating a few stocks.