How to Screen for Stock Ideas as an Investor


Thanks to the internet, there are plenty of investors in the world today who choose to “go it alone” instead of paying for help from a professional brokerage team. Although you might still make your trades through a low-cost broker, you won’t rely on any other industry experts to give you advice. Instead, you’ll search for your trading options alone, and make your own decisions on how you want to get involved in the market. The DIY approach to trading can be a great way to save some money and learn more about how you can improve your trading strategies. However, if you want to get started, the first thing you’ll need to do is learn how to screen your stocks. In other words, this means separating the stocks that could potentially make you money, from the ones that are just going to waste your time. A digital solution like the Finviz screener could be a great way to get started, but there are some other ways that you can collect research and market data too.

Gathering Market Data

As an investor, there are few things more critical to your success than knowledge. The more you know about a specific marketplace or trading opportunity, the more likely you are to make the right decision about when and where to use your money. Gaining the best possible information about the market means tapping into a variety of different sources for information on companies, economies, and industries. Remember, to start your research; you don’t necessarily need to find out everything about every company you might want to invest in. However, you do need a basic overview of what might be driving the market at any given time. It helps to look at business reports from a range of different media channels, including financial websites, social media, and even television.

What to Look for In Successful Companies

Once you know how to track relevant information in the marketplace, you’ll also be able to start working on your abilities to identify successful companies. For instance, though there’s no one-size-fits-all strategy for finding the right investment company, most will have:

    • Higher levels of insider buying: Senior executives and other experts within a team buying up shares in a company is a good sign that the people within the business know something that you don’t.

    • Accelerated earning and sales growth: look for businesses that are accelerating their top and bottom lines by more than 15 percent. This is the benchmark that most institutions will look at when they’re getting involved with stocks.

    • Solid company charts: Technical analysis isn’t always the most critical factor that you will need to think about when you’re selecting stocks, but it’s worth noting that it does have a role to place. Investors should be consistently looking out for any business that is steadily improving its price at higher volume. This suggests that stocks are under accumulation, which means that momentum is happening within the company.

There are no concrete rules for finding the perfect stocks, but if you use these tips, you should improve your chances of making some quick cash.

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