How to Pick and Choose Among the Different Penny Stock Screener Programs
A penny stock screener is an essential tool that enables investors to filter out certain stocks according to certain criteria. How can you know which penny stocks to watch if you do not have a penny stock screener? With a penny stock screener you are able to zero in on those stocks that suit your investing strategy and account size. It is often advisable for investors with smaller accounts to begin with small investments. By utilizing a penny stock screener you are able to make sure you do not lose all your money as some stocks can result in large losses.
Most programs offer some sort of volatility or measure of how volatile the penny stock has been over the last month or year. Volatility is calculated by averaging the daily price of the stock over a period of time. For instance, if you have bought stock A and currently are watching it’s price increase to a daily value of eight dollars, this would be a good stock to invest in. Since it has been increasing in value, there is a reasonable chance it will continue to increase in price during the next trading day.
Other stock screeners offer more detailed information based on market cap. This information is normally built-in within the software and provides the overall market cap value of the stock as well as other important information such as current news. Built-in scans can also provide graphs and other visual representation of the price and volume of the stock.
There are many different types of penny stock screeners available. Some of the more popular include: Yahoo Penny Stock Screener; Yahoo Finance Penny Stock Screener; Google stock screeners; and Microsoft stock screeners. Most of these screens allow you to manually select the penny stocks you wish to research, and some even provide charts and other visual representation of the data. Penny stock screeners usually require a small membership fee, but many offer a free trial period.
Once you are able to use the penny stock screener that allows you to pick and choose which stocks you wish to monitor, the next step is to enter in the beginning and end price changes for each stock. The screen will then calculate the volume of trading for each stock and will give you the percentage change in price between the end of the period and the start of the period. If there was a significant price change, this is a good stock pick to buy, and will likely result in a profit. However, if the price change was very small, the stock may be a bad choice to get in on.
With so many different penny stock screeners available, it can be a little intimidating to choose which one to use. Luckily, there are some criteria you should look for in each program. First, you should make sure that the penny stock screener you go with has a solid reputation. There’s no sense in taking the chance on a program that won’t give you reliable information. And if the program you use reports that it is the best, it will also provide proof by monitoring and recording real-time market data to ensure its reliability and effectiveness.