Selecting profitable stocks isn’t as easy as it sounds. The sheer number of companies makes it difficult to identify good stocks. Further, the large volume of unreliable data on the internet adds more confusion to the process. This is where a good stock screener can help you in making the right selection. In this article, we will discuss how a stock screener in India works and what are its benefits. This post is going to be very helpful, so make sure to read it till the end!
7 Important Benefits Of Stock Screeners For Investment Decisions – An Investor’s Guide
A Stock screener is the best tool for analysing stocks before making investment decisions.
What is a stock screener?
A stock screener is an instrument that helps traders and investors to filter out the most lucrative stocks based on some predefined metrics. It offers the users an option to select their desired trading instrument based on certain criteria or their profile. Although there are many stock screeners out there, to have the most accurate results, it’s important to select the right one. Moreover, a stock screener in India can either be free or subscription-based. So, you can easily get one according to your budget and preferences.
Now that you know what a stock screener is and how it works, let’s throw some light on its advantages.
Main benefits of using stock screener in India
Below are some key benefits of using a stock screener in India :
1. Saves time
The manual stock screening process involves shortlisting the genuine stocks, studying each and every one of them to find out their historical performance, predicting their future and analysing the impact of current and potential events on them. No surprise why manual screening is time-consuming. If you plan to do it on your own, it will take ages for you to pick up the right stocks.
The biggest advantage of using a stock screener in India is, it saves time. It narrows down the lengthy screening process by applying certain filters and metrics that suit your investment goals. Once you select the desired metric, your screener will present you with the most relevant stocks that complement your requirements.
2. Shows new investment opportunities
Another advantage of using a stock screener in India is that it presents you with new and better investment opportunities. Since it filters out the stocks that suit your selected criteria, you would be able to pick out all the profitable instruments that you might have not explored till now. In other words, you can discover less popular but more profitable stocks to maximize your returns on investment.
3. Allows saving screens for further references
Using a stock screener, you can save a particular screen to use for future reference. By doing this, you can accelerate the screening process by quickly loading a saved screen where you’ve already set your desired metrics and filters.
4. Helps eliminate emotional and behavioural bases from decision-making
When analysing stocks, it is very easy to get drifted from your investment goals and make decisions based on behaviour and emotions instead. Such biased decisions are not really great for your investment and may result in poor returns.
For example, investing in stocks of a company just because you’re familiar with it and enjoyed using its products makes no sense if the performance of that company is going down.
Thankfully, there are stock screeners that remove this kind of emotional bias and provide you with the best stocks based on their performance and future prospects.
5. Keeps you updated
The best part about using a stock screener in India is, it keeps you updated regarding the current and upcoming market trends, events and other related information. For example: there are some great stock screeners that show live performance and price charts of the stocks to help investors analyse them better. Further, the best screeners also send regular updates and financial reports via text and email.
6. Saves you from facing losses
Stock screeners are recommended for beginners because they help them in making safe investments. By filtering out the best stocks and removing emotional bias from decision-making, a stock screen can save you from potential losses.
7. Saves money
A stock screener is like your personal financial advisor but at a minimum possible fee. Having the right screener, you can save a good amount of money that you’d otherwise spend on hiring a reliable financial advisor. So, overall, you save money by investing in risk-free stocks and not paying hefty charges of a professional.
No doubt, you can make good profits by investing in stock markets, but if you make decisions in a hurry and without doing proper research, you can easily end up facing huge losses. Stock screeners become very helpful in such scenarios because they encourage investors to make mindful decisions independent of their emotions and behaviour. We have discussed all the possible advantages of using a stock screener in India, hope it helps!