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Simplifying Stock Screening Using A Technical Stock Screener: Tips For Indian Investors

If you’re not leveraging the power of stock screening to aid your investment-related decisions, then you’re at a disadvantage for a number of reasons. For newbie investors, stock screening is a process of finding profitable stocks from a pool of available stocks in the market. It usually involves performing in-depth research and analysis, which can take days and even weeks if done manually. Thankfully, there are stock screeners that make screening stocks a breeze. Using a technical stock screener in India, you can find out the best stocks in seconds, at your fingertips. Yes, that’s absolutely right!

In this article, we are sharing everything you need to know to carry out stock screening using a technical screener. If you want to know more, keep reading!

A technical stock screener is a popular stock analysis tool used by traders and investors to find the right stocks.

What is a technical stock screener in India?

A technical stock screener in India is a tool that can help you identify the stocks listed on a stock exchange that fulfil a predefined criteria set by you. The predefined criteria here corresponds to certain metrics that help in determining the performance and future aspects of the stocks listed by various companies.

The tangible parameters based on which a technical stock screener in India works can include market capitalization, dividend ratio, growth rate, average volume, price to earnings ratio (P/E ratio), debt to equity ratio, average ROI, and a few others.

How Stock Screeners Work?

Stock screeners usually have a master database comprising hundreds and thousands of companies and individual stocks listed on the stock exchanges. Note that different screeners have different filtering criteria, but most commonly they include the ones we have discussed above.

When an investor or a trader uses a stock screener, he chooses a set of metrics with some predefined values. For example, you can filter all the stocks and get a list of the lens with a market capitalization value above Rs. 100 Crore. Your screener will search through its master database and display all the companies that fulfil your criteria.

Tips to use a technical stock screener in India

Using a stock screener is very simple and easy. It usually comes in the form of mobile or desktop applications which you can use just like any other mobile application. All you need to do is, find and install the right technical stock screener in India, in your device and set the criteria you want your stocks to match and that’s it. The screener will show you a list of stocks matching the criteria set by you.

Below are some tips that will help you learn and use a technical stock screener in India :

Getting started

The very first step is selecting the right technical stock screener in India. And once you have it, all you need to do is create your account. Most screeners offer multiple customization options using which you can set your preference, create a watchlist, etc.

Pay attention to technical indicators

Technical indicators take the volume and price data into account to show investors the variables set by them.

Specify a time frame

It is a very important tip for the investors, especially the ones who have just started. Plan a specific time frame according to your investment goals and trading strategy when settling your parameters. Make sure that all the variables are selected for a specific timeframe.

Focus on high volume stocks

If you don’t have any trading experience, then always prefer high volume stocks. The reason is, high-volume stocks offer enough buying and selling opportunities, hence you’ll be able to trade without exposing yourself to greater risks.

Do in-depth research side-by-side

No doubt, stock screeners make selecting the right stocks easy and convenient. However, they can not be used as a substitute for research. So, always use a technical stock screener in India alongside your in-depth research. Your research should be based around the latest news, company announcements, market mood, etc.

Record a trading journal

While this tip may not seem very important at first, it is great for beginners. To make informed and smart investment decisions, it’s a good idea to maintain a nice trading journal that records your trades, preferred stocks, investment goals, trading strategies, etc. This will help you screen the desirable stocks in an easy way. You can use this journal for analyzing and improving your trading strategies and become a better trader.

Create stock watchlist

The best technical stock screener in India allows you to create your own watchlist. By doing so, you can keep an eye on the companies or stocks that you think have the potential to offer you high returns in future. Also, keep performing your research on the selected stocks to find the right time to invest in them.

There you have it!!

A technical stock screener is a very powerful tool for investors. It helps you make informed and safe investments by allowing you to find the most profitable stocks in the market. We hope these tips help you in getting started with a technical stock screener in India.

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