The number one parameter for finding success trading in the stock market is research. The importance of understanding what instruments you are buying and selling cannot be emphasized enough. In days past, traders relied on word of mouth, and rumors and fraud were rampant. In some cases, those problems are still out there today — particularly in the more volatile, less transparent world of penny stock trading. Luckily, there is penny screener software available at our fingertips that can help research and navigate the penny stock market.
Embrace the Penny Stock Screener
A penny screener is a software program that helps keep track of penny stock movements and selects penny stocks that will interest the trader. There are thousands of stocks to select from, and penny screening software allows the user to set up a series of parameters in order to pinpoint those penny stocks that are of the most interest to the penny stock trader. By utilizing penny screening software, the trader can narrow the field of stocks down from thousands to hundreds or even down to a handful of penny stocks that fit with the precise preferences of the trader.
Customize the Stock Criteria
Penny screening software gives the trader an array of criteria with which to narrow the field of stocks down to those that are of most interest. Stocks can be selected based on market or industry, price, and volatility. Screening software can also be used to evaluate the historical trading of a particular stock.
Handy tools like the high and low price over a span of weeks or months can give the trader a better idea about how a given stock may perform in the future. Particularly for the penny stock trader, who tends to buy and sell positions quickly, screening software can highlight a stock’s volatility and reveal patterns the trader can capitalize on.
Find the Screener That Works for You
There are quite a few different stock screening programs available. The right screening software will vary from one trader to the next. Some traders are more technical and might be happy with a complicated screening software package that features a ton of options, while others may want a more “bottom line” type of screener that is easier to get their heads around.
When selecting a screener, look for one that provides you with the parameters you want to set for your stock searches, and is also relatively easy to use. There are a number of free stock screening programs available online, including powerful screeners provided by Google, Yahoo, and more.
Why Penny Stocks Should Be Part of Your Investing Strategy
Penny stocks are a good way to diversify your investment portfolio, and they also offer some advantages over higher-priced instruments. First off, the price to buy into the market is low, so a great deal of capital is not required to get started in the penny stock market. Penny stocks are generally shares of companies that are either just starting up, going through a bankruptcy and restructuring, or carrying an excessive amount of debt. This is where research is essential. While penny stocks are inherently more risky than more expensive stocks, there are great opportunities to be found.