Stock Screener vs Stock Scanner: What’s the Difference and Which One Should You Use?

If you are interested in trading stocks, you might have heard of two tools that can help you find the best opportunities in the market: stock screener and stock scanner. But what are they exactly, and how do they differ from each other? In this blog post, we will compare and contrast stock screener vs stock scanner, and show you how to use them effectively to find the best trading opportunities in the market. We will also introduce you to some of the best stock screener and scanner platforms that you can use to enhance your trading performance. Let’s dive into the world of stock trading tools.

What is a Stock Screener?

A stock screener is a tool that allows you to filter a large pool of stocks based on specific criteria, such as sector, market capitalization, dividend yield, earnings growth, price-to-earnings ratio, and more. A stock screener helps you narrow down your search for stocks that match your investment goals and preferences. For example, if you are looking for undervalued stocks with high dividend payouts, you can use a stock screener to find them easily.

A stock screener typically uses current and historical data to provide you with deeper analysis and insights on the stocks that meet your criteria. You can use a stock screener to sort, rank, compare, and evaluate different stocks based on various metrics and indicators. A stock screener can also help you identify trends, patterns, and signals that can guide your trading decisions.

A stock screener is ideal for traders who want to do more research and analysis before entering a trade. A stock screener can also help you find long-term investment opportunities that suit your risk-reward profile.

What is a Stock Scanner?

A stock scanner is a tool that helps you monitor the market in real-time and alerts you when a stock meets certain conditions or triggers. A stock scanner uses live data to stream information on the stocks that are moving based on your criteria. For example, if you are looking for stocks that are breaking out of a certain price range or volume level, you can use a stock scanner to find them quickly.

A stock scanner is designed to provide you with fast and accurate data and alerts that help you identify potential trading opportunities. A stock scanner does not do much back-end processing or analysis; it simply shows you the current behavior of the market based on your filters. A stock scanner can also help you track multiple stocks at once and keep an eye on the market sentiment and momentum.

A stock scanner is ideal for traders who want to make quick and swift moves in the market. A stock scanner can also help you find short-term trading opportunities that require fast action and execution.

Stock Screener vs Stock Scanner: The Main Differences

As you can see, both a stock screener and a stock scanner can help you find stocks that match your criteria, but they have different purposes and functionalities. Here are some of the main differences between them:

• Data: A stock screener uses current and historical data to provide analysis and insights on the stocks that meet your criteria. A stock scanner uses live data to provide information and alerts on the stocks that are moving based on your criteria.
• Resources: A stock scanner requires more resources than a stock screener, as it has to fetch and stream data in real time with minimal processing. A stock screener requires fewer resources than a stock scanner, as it uses existing data with more processing.
• Traders: A stock screener is more suitable for traders who want to do more research and analysis before entering a trade. A stock scanner is more suitable for traders who want to monitor the market in real-time and act quickly on opportunities.
• Timeframe: A stock screener is more useful for finding long-term investment opportunities that suit your risk-reward profile. A stock scanner is more useful for finding short-term trading opportunities that require fast action and execution.

How to Use a Stock Screener and a Stock Scanner Effectively

Depending on your trading style, goals, and preferences, you might want to use either a stock screener or a stock scanner, or both. Here are some tips on how to use them effectively:

• Define your criteria: Before using any tool, you need to have a clear idea of what kind of stocks you are looking for. You need to define your criteria based on factors such as sector, industry, market cap, dividend yield, earnings growth, price-to-earnings ratio, technical indicators, price action, volume, volatility, etc. You also need to consider your risk tolerance, time horizon, capital allocation, etc.
• Choose your platform: There are many platforms that offer both stock screener and stock scanner functionalities. Some of them are free, while others require a subscription or fee. You need to choose the platform that suits your needs and budget. You also need to check the quality, accuracy, reliability, speed, and user-friendliness of the platform.
• Test your strategy: Once you have your criteria and platform ready, you need to test your strategy using the tool. You need to see how the tool performs in different market conditions and scenarios. You need to evaluate the results and outcomes of using the tool. You need to see if the tool helps you find the stocks that match your criteria and expectations. You also need to see if the tool helps you improve your trading performance and profitability.
• Adjust and optimize: Based on your testing and evaluation, you might need to adjust and optimize your criteria and strategy. You might need to add, remove, or modify some of the filters or parameters that you use. You might also need to switch or combine platforms if needed. You need to find the optimal balance between precision and flexibility when using the tool.

Some of the Best Stock Screener and Stock Scanner Platforms

To help you get started, here are some of the best stock screener and stock scanner platforms that you can use to find the best opportunities in the market:

• Trade Ideas: Trade Ideas is one of the most popular and powerful platforms that offers both stock screener and stock scanner functionalities. Trade Ideas uses artificial intelligence and machine learning to provide you with actionable insights and alerts on the stocks that match your criteria. Trade Ideas also has a variety of features such as backtesting, charting, simulation, education, community, etc. Trade Ideas is a subscription-based platform that offers different plans and pricing options.
• Benzinga Pro: Benzinga Pro is another platform that offers both stock screener and stock scanner functionalities. Benzinga Pro provides you with real-time data and news on the stocks that meet your criteria. Benzinga Pro also has features such as watchlists, calendars, signals, chat rooms, etc. Benzinga Pro is a subscription-based platform that offers different plans and pricing options.
• TradingView: TradingView is a platform that offers stock screener functionalities with a focus on social trading. TradingView provides you with interactive charts, indicators, tools, etc. TradingView also has features such as watchlists, alerts, screener, scanner, etc. TradingView also has a large community of traders who share ideas, opinions, strategies, etc. TradingView is a freemium platform that offers both free and paid plans and pricing options.
• Scanz: Scanz is a platform that offers stock scanner functionalities with a focus on speed and accuracy. Scanz provides you with real-time data and alerts on the stocks that are moving based on your criteria. Scanz also has features such as a news scanner, breakout scanner, volume scanner, etc. Scanz is a subscription-based platform that offers different plans and pricing options.
• TrendSpider: TrendSpider is a platform that offers stock screener functionalities with a focus on technical analysis. TrendSpider uses automation and algorithms to provide you with dynamic charts, indicators, patterns, trends, signals, etc. TrendSpider also has features such as alerts, backtesting, market scanner, etc. TrendSpider is a subscription-based platform that offers different plans and pricing options.

If you want to learn more about how to choose the right stock scanner for your trading strategy, you can check out this blog post: Choosing the Right Stock Scanner for Your Trading Strategy. This blog post will teach you how to compare different stock scanners based on their features, functionalities, and pricing. You will also find some tips and recommendations on how to use stock scanners effectively and efficiently.

Stock Screener vs Stock Scanner: Why You Need Both Tools to Succeed in the Market

You might be wondering if you need to use both a stock screener and a stock scanner, or if you can just use one of them. The answer is that you need both tools to succeed in the market, as they have different advantages and disadvantages. Here are some of the reasons why you need both tools to find the best stocks to trade:

• A stock screener can help you find stocks that match your long-term investment goals and preferences, while a stock scanner can help you find stocks that match your short-term trading opportunities and strategies. By using both tools, you can diversify your portfolio and balance your risk-reward ratio.
• A stock screener can help you find stocks that have strong fundamentals and growth potential, while a stock scanner can help you find stocks that have strong technicals and momentum. By using both tools, you can combine fundamental and technical analysis and increase your chances of finding profitable trades.
• A stock screener can help you find stocks that are undervalued or overvalued based on various metrics and indicators, while a stock scanner can help you find stocks that are breaking out or breaking down based on price action and volume. By using both tools, you can identify entry and exit points and optimize your trade execution.
• A stock screener can help you find stocks that are trending or consolidating based on historical data and patterns, while a stock scanner can help you find stocks that are moving or volatile based on live data and alerts. By using both tools, you can monitor the market conditions and trends and adapt your trading style accordingly.

As you can see, both a stock screener and a stock scanner have their own strengths and weaknesses, but they can also complement each other. By using both tools, you can leverage the best of both worlds and find the best stocks to trade in the market.

Stock Screener vs Stock Scanner: The Common Mistakes Traders Make When Using These Tools

While stock screener and stock scanner are both useful tools for finding the best stocks to trade, they are not foolproof. Traders can still make some common mistakes when using these tools, which can affect their trading performance and profitability. Here are some of the common mistakes traders make when using stock screener and stock scanner, and how to avoid them:

• Relying too much on the tool: While these tools can help you filter and monitor stocks based on your criteria, they cannot replace your own judgment and analysis. You still need to do your own research and due diligence on the stocks that you find using these tools. You also need to have a clear trading plan and strategy, and follow your own rules and discipline. Do not blindly follow the tool’s suggestions or alerts without verifying them yourself.
• Using too many or too few criteria: When using these tools, you need to find the optimal balance between precision and flexibility. If you use too many criteria, you might miss out on some good opportunities that do not fit your exact specifications. If you use too few criteria, you might end up with too many results that are irrelevant or low-quality. You need to use enough criteria to narrow down your search, but not too many to limit your options.
• Using outdated or inaccurate data: These tools are only as good as the data they use. If the data is outdated or inaccurate, the tool’s output will also be unreliable. You need to make sure that the platform you use provides you with updated and accurate data from reliable sources. You also need to check the data yourself for any errors or discrepancies. Do not trust the data blindly without verifying it yourself.
• Ignoring market conditions and trends: These tools can help you find stocks that match your criteria, but they cannot tell you if the market conditions and trends are favorable or unfavorable for your trading style. You need to be aware of the market sentiment and momentum, and how they affect the stocks that you find using these tools. You also need to adapt your criteria and strategy according to the changing market conditions and trends. Do not trade against the market without a good reason.
• Not testing or optimizing your strategy: These tools can help you test and optimize your strategy using features such as backtesting, simulation, etc. However, many traders do not use these features or use them incorrectly. You need to test your strategy using historical data and see how it performs in different scenarios and timeframes. You also need to optimize your strategy by adjusting and fine-tuning your criteria and parameters. Do not trade with a strategy that has not been tested or optimized properly.

By avoiding these common mistakes, you can use stock screener and stock scanner more effectively and improve your trading performance and profitability. Remember, these tools are meant to assist you, not replace you. You still need to use your own skills, knowledge, experience, and judgment when trading stocks.

Conclusion

Stock screener and stock scanner are two tools that can help you find the best opportunities in the market. They have different purposes and functionalities, but they can also complement each other. Depending on your trading style, goals, and preferences, you might want to use either one or both of them effectively.

We hope this blog post has helped you understand the difference between stock screener vs stock scanner, and how to use them effectively. We also hope you have found some of the best platforms that offer these tools.

If you have any questions or comments, feel free to leave them below. We would love to hear from you.

Happy trading!