How To Filter Stocks That Are Risky?

If you are used to sitting in front of your computer and trying to figure out the best stock picks in the market to entrust your investment, chances are that you have not used the efficient methods of stock filter yet. This tendency of yours is a sure sign of a confused investor who is grappling with a surfeit of stock market information and unable to decide about the stocks to invest his money in. It can be that the risk of losing your hard-earned money by investing in non-performing stocks is getting the better of the confidence in your decision making.

If this synopsis of a troubled investor is similar to what you find your state of investment in, it is nothing to be alarmed about as many stock traders have to go through the same turmoil. This continues till they are able to use stock filter and streaming filter to screen out thousands of stocks to a manageable list of a few. After you are able to do this, it would become easy for you to focus on your favorite stocks and that too, within seconds.

A confused stock trader needs to make his task easier with the help of stock filter software. You can tailor such a filter to suit your style of trading. There are some free and some paid versions of these stock charting software and scanning tools. There are stock filters which can filter by price, by volume and some others which let you define a set of criteria for filtering.

After you have filtered the stocks by price or volume, the investor may need to filter them on the basis of certain criteria or setup event. This event or criteria could be detailed as well as simple but you do need to be specific about it. If you can do that, you open up all the chances of creating a filter for narrowing down your stocks. Some commonly used trade set ups include Candlestick Patterns, Moving Average crossovers, Price closing above or below a Chart Indicator.

Once you get used to setting up a stock filter of your choice, it would help you setting up multiple scans and filters in your charting software. Your ability to set up these filters and scans would cut across set ups, indicators and multiple time frames. After having become adept with stock filters, you would have the option of using a streaming filter too, which lets you scan based on your customized queries.