Stock Screening
From Wikipedia, the free encyclopedia
An Overview
Success in stock trading depends on finding suitable trading ideas. Finding good ideas, however, is not always easy. Many traders, analysts, and individual investors thus rely on stock screening tools to make the process less cumbersome.
Stock screening is a method of finding trading ideas by filtering through vast amounts of investment-related data. In today's world, the process is almost always automated, with the assistance of a PC. There are two types of stock screening, static and real-time.
Static Stock Screening
Static stock screening uses data that does not change in real-time, and is mostly used for finding long-term trading or investing ideas. The user enters technical or fundamental search criteria in a stock screening program, and the program return stocks that meet these criteria.
Real-time Stock Screening
Real-time stock screening (a.k.a. stock scanning of stock filtering) uses live data, such as the current trading price. This is critical for market professionals or active investors that demand more time-sensitive search results. Real-time stock screening is used mostly by short-term traders.
