Exploring the use of technical stock screening tools

Finding effective technical stock screening tools can mean the difference between making a large investment on playing the stocks and losing a large investment. For this reason, it is vital to understand not only what the best technical stock screening tools are, but also how to use them and where to find an authoritative source that you can trust.

To begin, stock screens essentially tools that allow traders to look over the entire stock market in one simple command so that they can ascertain which stocks meet their criteria as a trader. Modern stock traders often define these tools as indispensable since they minimize the amount of time it takes to find a solid stock buy in opportunity and help make the investment system a bit more automated which also saves time and trouble.

In order to comprehend the role of a technical stock screening tool, the best way to compare their use is to consider how stock screening used to be carried out, with a large amount of newspapers and other printed sources or real time stock machines. This required traders to manually scour thousands of sources and compile the results to make a trading decision. In comparison, with the aid of the modern tools which can either be stand alone or web based tools, having a pre-selected set of ideal stocks laid out in front of you on a screen out of tens of thousands of stock options is much more effective and efficient when making a trade decision.

The additional advantage of using technical stock screening tools is that you can choose the best tools based on your own set of predetermined criteria. For example, you may choose to set the screening tool to look for long term earning potential, short term earning potential, stocks that are suitable for growth or stocks that have an overall value that will increase in a very short period of time. Other technical criteria sets may include breakouts, key reversals, or any custom stock criterion that a stock trader feels is vital. Most tools can also accommodate stock screening based on more than one criterion.

When searching for a technical stock screening tool, you should look for the following criteria to be included at a minimal to ascertain if it is an effective purchase: rising on an abnormal volume, stock trending up, price at the support line, price at new highs, and price over the resistance line. Along the same lines, you should also look for a nominal fee to be attached to the technical stock screening tool.

This latter part is very important, because while your instinct may be to search for a free technical stock training tool, you need to keep in mind that you will use this tool to manage your investments in the stock market. In the same way that you would want to hire a stock analyst who has something to gain in your investment to assure that they perform at their maximum with your money, you want to purchase a screening tool from a professional who also has a stake in how their screening tool produces results. This way you can rest assured that they have your best monetary interests aligned with their own.

For more information about where you can obtain a technical stock screening tool to free up your time and help offer you the best of the stock market in terms of opportunities, head on over to Technical-Stock-Screener.com.