What is a Screener - Meaning and How to Use it

A stock screener is one of the most useful tools for traders and investors. Whether you are just starting your journey in the financial world or already trade regularly, knowing how to use a stock screener can help you find the right stocks quickly. But what is a screener, and how does it work?

In this guide, we will explain the screener’s meaning, its types, and step-by-step instructions on how to use screener tools to make smarter decisions in trading.

What is a Screener: Basic Meaning

A screener is an online tool that helps traders filter and find stocks, ETFs, or other assets based on specific rules and conditions. Instead of checking every single stock one by one, a stock screener lets you set filters like price, volume, market capitalization, or technical indicators. It shows you only the stocks that match your conditions.

In simple words, a stock screener is like a search engine for stocks. You tell it what you want, and it shows you matching results.

Why Use a Stock Screener?

Using a stock screener saves time and makes trading easier. Here are the main benefits:

• Fast Filtering: Instead of manually looking at hundreds of stocks, you can quickly filter them.
• Better Decisions: By setting clear rules, you can avoid emotional decisions.
• Custom Strategies: Combine different filters to match your trading strategy.
• Stay Updated: Many screeners update results in real-time, so you get fresh information.

What is Screener: Common Terms You Should Know

Before jumping into the details, here are some common terms you should know about screeners:

• Market Cap: The total value of a company’s shares.
• P/E Ratio: Price-to-Earnings ratio, showing if a stock is overvalued or undervalued.
• Volume: Number of shares traded in a day.
• Price Change (%): How much a stock’s price has changed in a period.
• Technical Indicators: Numbers based on price and volume data (e.g., moving averages).

These terms help you build better filters when using a stock screener.

Types of Stock Screeners

There are different kinds of screeners you can use depending on your goal. Here are the main types:

1. Fundamental Stock Screener

A fundamental stock screener focuses on the financial data of companies. It looks at numbers like earnings, debt, sales, and more. If you are interested in long-term investing, this screener is perfect.

For example, you can filter stocks with:

• Low P/E ratio.
• High dividend yield.
• Low debt-to-equity ratio.

2. Technical Stock Screener

A technical stock screener looks at price movements and volume patterns. Traders use this to find stocks that meet specific price or technical conditions.

Some common filters in a technical stock screener include:

• Stocks trading above a 50-day moving average.
• Stocks with increasing volume.
• Stocks showing bullish patterns like “Golden Cross”.

3. Trading Screener

A trading screener is a mix of fundamental and technical filters. It helps active traders find stocks ready for short-term moves based on technical and financial data combined.

For example, you could filter for:

• Stocks with high volume and a low P/E ratio.
• Stocks are near support levels.

How to Use a Stock Screener: Step-by-Step Guide

Using a stock screener is easier than you think. Below is a simple step-by-step guide to get started.

Step 1: Choose a Good Stock Screener

There are many free and paid stock screeners available. One powerful option is the Tradomate stock screener. You can use it here

Tradomate is designed to help traders of all levels screen assets, create strategies, and backtest easily.

Step 2: Define Your Goal

Before using a screener, ask yourself:

• Am I looking for long-term investment opportunities or short-term trades?
• Do I want fundamental data, technical patterns, or both?

It will help you set the right filters.

Step 3: Set Your Filters

Here are some common filters to start with:

For Fundamental Screening:

• Market Cap above $1 Billion.
• P/E Ratio below 20.
• Dividend Yield above 2%.

For Technical Screening:

• Price above 50-day Moving Average.
• RSI below 30 (indicates the stock might be oversold).
• Volume increase by 50% compared to the previous day.

You can combine multiple filters for precise results.

Step 4: Run the Screener

Once filters are set, click the “Search” or “Run” button. The screener will process thousands of stocks and give you a list of matching results in seconds.

Step 5: Analyze the Results

Review the list of stocks carefully. Look at the charts, company fundamentals, and recent news. Don’t blindly follow the screener; always double-check the data before making any decision.

Step 6: Save or Export the List

Most stock screeners, including Tradomate, allow you to save your filter settings and export the list of stocks for future use. It makes it easy to track stocks or share your strategy.

Tips for Using a Stock Screener Effectively

Here are a few extra tips to get the most out of your stock screener:

• Keep It Simple: Start with basic filters. Avoid too many conditions that could return no results.
• Stay Updated: Use real-time screeners if possible, so your data is always fresh.
• Test Different Strategies: Try different combinations of filters to see what works best for your trading style.
• Check News and Reports: A stock may pass your filter but still have bad news. Always do a final check before investing.

Why Choose Tradomate Stock Screener?

At Tradomate, the stock screener is built for both beginners and experienced traders. Here’s why it stands out:

• User-Friendly Interface: Simple design, easy to set up filters.
• Fast Results: Processes large amounts of data quickly.
• Customizable: Allows advanced users to create complex screening rules.
• Reliable Support: Backed by a team that understands every trader’s journey.
• Strategy Creation and Backtesting: Beyond screening, Tradomate helps you create and test strategies before risking real money.

Common Mistakes to Avoid While Using a Stock Screener

Even though stock screeners are helpful, some mistakes can cause problems.

• Relying Only on Screeners: Don’t blindly trust the screener. Always double-check stock charts and news.
• Using Too Many Filters: If you set too many filters, you might get zero results.
• Ignoring Market Conditions: A stock might look good now, but overall market conditions matter a lot.
• Not Updating Filters: Market trends change fast. Make sure you update your filters regularly.

Conclusion

A stock screener is an essential tool for traders and investors. It helps you find stocks that match your strategy quickly and efficiently. By understanding what a screener is, screener meaning, and how to use screener tools like the Tradomate stock screener, you can take control of your trading journey.

Always remember, no tool replaces knowledge and research. Use screeners wisely, combine them with charts, news, and fundamental analysis, and you will become a smarter trader.

At Tradomate, we are committed to supporting you at every step of your trading journey.

To know more, explore Tradomate’s informative blog section!