Stock scanners or screeners are great tools that help people find securities to invest in, whether buying and holding, day trading, swing trading, etc. Even seasoned investors don’t know all the tickers and their endless categorizations. Plus there are always IPOs being introduced to the market. One of my friends is the most seasoned investor I know, and he uses a paid screening or scanning tool to help him find the best investments.
There are screeners that produce lists, and there are stock scanners that produce reports. If you use a paid scanning tool, you can be privy to all kinds of reports and analytical data that can help you make the best investment decisions. If you want access to that type of data, you can use the screening tools that are available. Some are better than others, so it helps to look at reviews or get ideas from seasoned investors.
If I were to use one, I would pick the one that my investment mentor uses. I have yet to use one of these tools. Initially, I thought them to be for people that had more money and not for beginning investors. While I’m not necessarily a beginner, my nest egg is at its beginning stages. Therefore, I never really locked onto the idea that I should be using an investment scanner. If you aren’t currently using one, I suggest considering doing so.
A stock screener would be a helpful tool for you as you build up your investments. Even if you have some excellent investments picked out, these scanners can help you generate reports that will guide you to the best investment decisions regarding those securities. It’s not just about picking based on the numbers. There are all kinds of factors involved.
You need that numerical data, however, and you need to get to know a company before making an investment. The old adage that Warren Buffet always uses is ‘invest in what you know.’ That is good advice, and it’s good advice to use a stock screener to gather as much information as you can to get to know a company. If you are going to be an investor, you want as much information as you can find to help fuel your decisions. That can be of big help to you when it comes to maximizing returns and compounding them over and over again towards building wealth.