Intraday trading means the buying and selling of stocks on the same day to make a profit. A stock screener is a powerful tool that can help traders find opportunities in real time, providing an advantage in capturing profits for intraday trading. In this blog, we will explore how to use this screener effectively.
Why Should Traders Use a Stock Screener?
There are several benefits of using an Intraday stock screener. Some of them are listed below:
1. Data-Driven Choices
Intraday screeners utilize current market data to identify stocks displaying particular trends or qualities. Now traders can make data-driven decisions based on the most recent facts by using information provided by stock screeners. This enables traders to take advantage of new opportunities and stay ahead of the curve.
2. Time Efficiency
Intraday screeners help traders save time by automating the process of examining individual stocks. In a matter of seconds, they filter through a huge universe of stocks, giving traders a personalized list of stocks that fit their predetermined parameters. Because of this, manual research is no longer necessary, allowing traders to concentrate on making wise trading decisions.
3. Customizable
Traders can adjust the parameters of intraday screeners to make the tool match their trading style and risk tolerance. Traders can also establish selection parameters depending on several factors, like volume, price movement, technical indicators, etc.
How to Use an Intraday Screener?
Here is how to use this stock screener.
Choose Your Screener
There are many stock screeners for Indian stocks available in the market. Some of them offer their services for free while others require a fee. Choose one that meets your requirements and has the functionalities that you require.
Specify the Requirements
This is where the trading strategy of traders is useful. Consider the following factors:
- Volume: Liquidity is ensured by a high trading volume, which facilitates easy trade entry and exit.
- Price Movement: Determine which stocks exhibit significant fluctuations in prices.
- Technical Indicators: Use Bollinger Bands, Moving Averages (MA), or the Relative Strength Index (RSI) to determine entry and exit points and gauge momentum.
- News & Events: Filter the stocks according to the latest developments. Price changes might be triggered by news related to the specific stock.
- Sector: Pay close attention to a specific sector that aligns with your prior experience or the state of the market.
Refine the Results
The initial results may be general. Further narrow down the lists using other filters such as market capitalization, price bracket, or charting formations.
Analyze Selected Stocks
Do not merely go by the screener. Conduct a further breakdown of the stocks that the stock screener offers. Refer to charts, read articles, and even consider the broader market sentiment.
Execute Your Trades
When you have chosen a stock you want to invest or trade in, issue your orders through your brokerage account. It is also important to note that stop-loss orders should be put in place to minimize risk.
It is crucial to understand that Intraday screeners are just tools that help in trading. These screeners should always be used in integration. Integrating the screener with disciplined risk management and continuous learning will help traders in navigating the complexities of the market and improve their trading outcomes.
To Wrap Up
Intraday screeners are powerful tools that can help traders increase their trading efficiency and make quick profits. By defining their criteria, refining the results, and combining the screener’s insights with their analysis, traders can unlock new opportunities in this fast-paced world of intraday trading.
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Pooja Yadav is a Technical Content Specialist with over 6 years of experience. She mostly writes about the tech guides for Tech Hub Digital. She also has an interest in Smartphones, Bluetooth Earbuds/speakers, Wearables and all things gaming.
In her spare time, she watches movies, series and enjoys spending time outdoors.