A Beginner's Guide to Finding Stocks for Trading: Stock Scans as the Easiest Way

As a beginner trader, the journey to finding stocks can seem daunting. However, with the advancements in technology and software, you can make the process much simpler and more efficient. Let’s dive into stock scans, a powerful tool for beginners looking to streamline their stock selection process.

Understanding Stock Scans

Stock Scans are a essential feature in modern charting software, designed to help you find and select stocks based on specific criteria. These criteria are tailored to meet your investment style and preferences, making it much easier to narrow down your options without manual research. For a beginner, this can be a game-changer in your trading journey.

Key Criteria for Stock Scans

Price Range: You can set a price range, such as 20-50, to only select stocks within that price range. This ensures that you stick to your budget and do not overpay for stocks that are out of your reach. Lot Size: By specifying the lot size, you can determine the number of shares you wish to trade on average each day. The scan will then filter stocks based on this criterion, simplifying your trading strategy. Industry Interest: If you prefer to concentrate your efforts on specific industries, such as technology, healthcare, or energy, you can filter out industries you are not interested in. Type of Trading: Different trading styles, such as short-term day trading or long-term investing, require different approaches. Stock scans can help you tailor your search to align with your chosen trading style, whether it is day trading, swing trading, or even value investing.

How Stock Scans Work

Quality charting software provides a simple interface for users to set their criteria for a stock scan. You can choose from pre-defined criteria, allowing you to perform the scan with minimal effort. Once you set your criteria, the scan performs all the work, providing you with a list of stocks that meet your specified criteria. This process eliminates the need for manual research and allows you to focus on analyzing buy entry signals and confirming indicators.

Recommended Platforms

There are a few excellent platforms that offer stock scanning features that are user-friendly and well-suited for beginners. Here are two popular options:

Koyfin

Koyfin, for instance, is known for its user-friendly interface. It also offers a stock screener and free charting with a decent selection of indicators. Simply sign up for an account, and you can start exploring what Koyfin has to offer. When contacting their support team, you can mention that you are a non-professional and request real-time data. This will enhance your trading experience and give you a more accurate view of the market.

Thinkorswim

Thinkorswim is another powerful platform that is highly regarded in the trading community. It offers a robust stock screener and free charting with a decent selection of indicators. While it does come with a steeper learning curve, it is still very beginner-friendly. If you are just starting out, you can open an account and ask for real-time data and a desktop application. This will make your trading experience more seamless and enjoyable.

Pro-Tips for Using Stock Scans Effectively

Start Small: As a beginner, it is wise to start with a small portfolio and gradually increase your investments as you gain more experience. Set Clear Goals: Define what you are looking to achieve with your trades. Are you looking to increase your knowledge, or are you aiming for specific financial outcomes? Stay Disciplined: Stick to your criteria and do not deviate from your trading plan just because a stock looks interesting. Discipline is key in successful trading. Conduct Further Research: While stock scans are a great starting point, they should not be your only source of information. Conduct fundamental and technical analysis before making a trade. Stay Informed: Keep up with market news and economic indicators that can affect your investments. Staying informed is crucial in making informed decisions.

In conclusion, stock scans are an invaluable tool for beginner traders. By using them effectively, you can save time and effort, allowing you to focus on the more critical aspects of trading. With the right platform and a solid trading plan, you can embark on your trading journey with confidence and success.