Stocks are an essential part of any successful investment portfolio, but for many novice traders finding and researching different stocks and options can seem far too challenging. By using a stock filter you are able to easily research companies in greater detail, organize stocks based on specific criteria or benefit from the wisdom and insight of a more experienced trader, fund manager or other financial organization. Filters are essential tools for organizing stocks in a way that will provide you with the information needed to make sound financial decisions.
Filters Offer a Quick and Easy Way to Aggregate and Organize Stocks
Stock filters and screeners can be employed and configured to list stocks based on any number of criteria including:
- Current and projected price changes
- Ratings based on earnings per share
- Changes in volume percentage and 50-day averages
- Relative strength and performance
- Accumulation and distribution ratings
- CEO and upper management changes
- Chart pattern detection
The ability to organize stocks based on key criteria can be of great benefit for investors seeking to compare their options, research a stock or even manage their existing portfolio with greater ease, convenience and success.
Creating Your Own Stock Filter or Using an Existing One
While seasoned investors may be able to gain greater benefit from a filter they have built to utilize their own specific criteria and benchmarks, novice investors may find using a pre-made filter to be more suitable. Investors who have limited experience making trades or navigating the market can use a pre-made filter to narrow their options and maintain their focus on the stocks and companies that will be most likely to provide them with a more rewarding investment opportunity or a superior return.
Monitoring and Managing a Large Portfolio
Larger portfolios that consist of multiple stocks and holdings can be difficult to manage effectively. Filters that can provide you with quick at-a-glance information regarding your current holdings and can simplify the process to ensure you stay informed about any price changes or developments that may be likely to impact your bottom line. Attempting to collate and organize information on your entire portfolio can be both time and labor intensive should you lack access to the right tools and resources. Adaptable and versatile, stock filters and screens offer a way to simplify the process and ensure that you do not miss out because of lack of information.