Last update on 2023-12-06 / Affiliate links / Images, Product Titles, and Product Highlights from Amazon Product Advertising API
Winning Strategy Scan
Trading strategies vary depending on the market conditions and individual circumstances. The best option for you is the one you end up choosing. The next step is to find a stock screening tool that will let you combine your preferred setups into a winning strategy scan.
Percentage Gainers Screener
Check out the stocks that are trending on this screen. The functionality is a standard part of most stock screening software. Keep in mind that large percentage increases are only one of many potential red flags to look for.
In this search, you're looking for stocks that satisfy all of your requirements. In order to refine your search, you could look for a high throughput and potent catalyst.
Watchlist Filtered News
For someone dealing in penny stocks, this is big. The stocks on your watchlist should be the exclusive focus of your news streamer. Then you can be notified of potential market-moving news.
If you wanted to do research of this caliber 10 years ago, you had to sign up for a number of different sites, many of which had a fee. StocksToTrade consolidates this information for you.
Dynamic Charts With News Indicators
The charts in your stock screening software should be dynamic and allow you to toggle between different time periods. It's important to be able to include technical indications and connect the dots between the news and price movement.
Proven ability to generate financial statements More data points are always helpful. They are less likely to be a fraud if they are forthcoming about their financial situation.
Successful in the past; you need to show "proof of concept" before investing.
Management has a well-defined strategy for the company's future. Management should have a distinct goal in mind for the business, as well as a solid plan to get there.
Avoiding Being Diluted By New Issues of Stock Or Employee Stock Options Is a Red Flag for Any Serious Investor When new shares are issued, existing shareholders see their ownership proportion reduced, and the share price declines as a result.
For example, the announcement of a new product launch, a collaboration agreement, or a merger and acquisition can cause a sharp increase in the price of a penny stock.
These are the sorts of things that are notoriously difficult to predict with penny stocks. This is why technical analysis and trading on shorter time frames are preferred by those who deal in penny stocks. Why "invest" in penny stocks when you could easily lose everything?
Sufficient Volume: You won't be able to enter a position of any size and you could have to settle for less-than-desirable pricing if a stock doesn't trade enough shares.
Stocks with a high relative volume get a lot of attention from investors and can experience dramatic price changes.
High Levels of Short Interest: Shares of stock with a high level of short interest (as measured by the short interest as a proportion of the float) are good candidates for a short squeeze.
Day traders focus mainly on stocks that are gaining or losing momentum, such as those that are making new highs or lows, crossing their moving averages, or displaying other technical patterns.
All of this is interesting in theory, but you may be wondering how on earth anyone could ever analyze thousands of stocks daily. Isn't it a bit like trying to find a needle in a haystack?
But there is nothing to worry about.
That's why you need a stock screener...
What are penny stock screeners?
Screeners for the stock market are useful tools for finding stocks that meet certain criteria. Filter your stock search results by price, volume, market capitalization, and more. There are many scanners out there for penny stocks if you are a trader of such stocks.
Quickly and efficiently search the market for penny stocks and report back with the results. You can set them up in your own unique way to make a custom watchlist. But in the conventional approach, investors have to spend a lot of time and energy looking for stocks. When we have portable stock scanners, why do things any other way?
What Is Technical Stock Screening?
Finding stocks to invest in based on technical analysis or indicators is called "technical stock screening." Stocks crossing a moving average or reaching fresh 52-week highs are two examples of such patterns. Technical indicators also include large percentage gains and gap-ups.
What Are the Best Free Stock Screeners?
Finviz, Yahoo, and MarketWatch are three excellent examples of free stock screening tools. With their in-built scanning capabilities, compiling a watchlist is a breeze. However, the fact that they are without cost means that they may lack cutting-edge features and information. Investing seriously requires you to think about investing in a stock screener.
Can You Become Rich by Trading Penny Stocks?
Yes. And I am the proof that the statement is true. However, don't misunderstand me. Trading penny stocks requires a lot of discipline and perseverance if you want to become wealthy. It requires a lot of time spent learning and practicing... Unfortunately, even that is no assurance. Keep in mind that the vast majority of traders end up losing. Don't put more on the line than you can afford to lose.
What is the Best Scanner for Penny Stocks?
It's clear from the examples in this post that Scanz is one of my preferred scanners for cheap stocks.
You can always know what's happening in the market thanks to the one hundred plus price, volume, technical, and fundamental filters and the one hundred plus real-time news sources.
You can find out more about Trade Ideas, another excellent scanner for penny stocks, in my Trade Ideas Reddit review.
MetaStock is a better option if you want to select stocks based on technical indicators and are interested in larger companies operating around the world.
Investing in penny stocks is a risky business, but with the help of a stock screener, you can choose the best ones to put your money into. These resources are useful because they reduce the need for time-consuming manual investigation. These days, you may find a wide variety of penny stock scanners online. But not every one of them is created equal. They have several functions that set them apart. Pick the one that works best for you. Consider price performance, volume, volatility, technical analysis, and fundamental analysis as you set up the scanner. You'll need these things most of all if you want to find the best possibilities in the penny stock markets.