Question About Scanners

[CType 10]

I've just made my first introduction post and have questions already.

 

Probably the biggest problem I have in trading is in finding stocks before they get to a good entry point. I generally get my picks from internet sites like 'StockScores', take a look at them, and then enter the trade so late that I'm lucky to get out even, or maybe make enough to cover the commission.

 

It seems pretty clear to me that I will need to find my own picks, which brings me to the question - What do I need for a scanner? Are the free online scanner good enough to start with? Which one has the most bang for the bucks?

 

I don't mind spending some money on good tools, but most scanners are expensive and I have no idea if they will help before hand.

 

Thanks

Bill

[zapisy 10]

Hi Bill,

 

The best scanner to find stocks I know is included in Tradestation - Radarscreen.

You can scan the stocks live or daily etc., using all the possible technical analysis.

But it depends on what exactly you are looking for.

[CType 10]

I think this should be in the 'Noob Question' thread. Sorry.

 

Thanks Zipasy,

 

I did search the site and found some posts on scanners that was helpful.

 

TradeStation is impressive, but I don't have the 1 million dollars, nor could I make that many trades a month to cover the cost.

 

Maybe this forum isn't for totally inexperienced people like myself.

 

Thanks again

Bill

[zapisy 10]

No... at all.

 

You red something wrong...

 

In order to have tradestation free, you need to trade 10 rounds futures a month or 5000 shares a month, and then you do not have to pay the $99 fee.

 

Also, to trade futures you need only $5k in account. Nothing more.

What you can do, you can buy or sell 10 contracts a month and it's completly free.

[uexkuell 10]

In order to have tradestation free, you need to trade 10 rounds futures a month or 5000 shares a month, and then you do not have to pay the $99 fee.

 

If you are really new to trading this will save you much money:

 

Stay away from trading just to avoid the fee!

 

You will unevitably pay much more than the 100 bucks for Tradestation in the end if you try to avoid the fee by trading.

If you think you really want to get into Tradestation better take into account that it will cost you 100 bucks every month until you get profitable (which will for the most people take 2 years at minimum).

 

Free screener:

Finviz.com

 

Test any strategy thoroughly in paper trading first.

[Tams 20]

msn.com Stock Research Wizard

 

Using a guided approach, MSN Money's Stock Research Wizard makes it easy to research stocks.

 

Stock Research Wizard - MSN Money

 

you will need internet explorer to get the full functions.

[CType 10]

I think Zapisy's approach works well for him (or her I suppose). It looks as though he has some experience in it from his profile. I'm sure that won't work for me at this stage. The 'Research Wizard' is pretty cool though. Thanks Tams, I've bookmarked it.

 

From the search of the site I think I'll paper trade with the 'StockFetcher' scanner for awhile. I have a very small account at the moment (job loss wacked it real good). I'm only trading in one stock which seems to be doing alright, so paper trading is about it until I exit.

 

For the Moderators:

If you feel it more appropriate, this probably belongs in the 'Noob Question' post. .

 

Thanks

Bill

[zapisy 10]

Hi

 

My name is Lukas, so him

 

And yes, it worked for me.

Since you can place automatic profit and stop loss order, the chance that you will be out let say at NASDAQ 10 times in a row (with loss) is smaller than a situation, when half or 65% of the trades will be unprofitable, and the rest on +.

 

So I do not think it is a math science at this point.

 

And I do not agree about the trading for 2 years to become profitable.

I know people that trade for 4 years, and they still can not achieve the results they want.

If you use stop loss with TS, I do not think that the losing part has something to do with skills you have or experience. Just go in, set stop 2 tick, profit 6 ticks. That is it.

 

Lukas

[DugDug 10]

Hi Bill, just to add a few hints when looking for scanners - especially for stocks.

1) define your stock universe - as it can be huge

2) define your entry setup and level so you know exactly what it is you are scanning for

3) actually write a process (this clearly should be refined over time) as to how you manage the daily process of scanning for things.

 

This will clearly define what you are after. One thing you will find is that a lot of time the setups will give you many many possibilities at the same time - so unless you have a clearly defined way of scanning, then processing the results you will chase your tail.

 

I used excel (as its easy to cut and paste and very manipulative) to define the universe of stocks, and define those that I found interesting, and then further chopped up which I thought made sense in the big picture fundamental viewpoint (eg; a setup in a stock that is a utility and yield based for me is different to a mining stock)

 

Ultimately I found that there is no substitute for just literally going through and manually looking at the charts on a continual daily basis - this can actually be achieved very quickly once you decide your initial universe and setup rules.

[ChampM 10]

You really don't need much fancy stuff if you want to do a basic scan -- price and volume should do it.

 

The trick is in the effort -- build a watch list of those stocks meeting your criteria and then watch for an entry -- I don't know what a "good entry" means to you.

 

You're right in wanting to think for yourself -- there really aren't any short cuts if you want to become a profitable trader.

 

Good luck,

Champ