Most active traders ought to be acquainted with every specific event, and tools that scan markets for trading and investing opportunities have found their relevance in this endeavor.
So, what are Trade Scanners?
In general, these are tools that help traders focus on trading their specific edges without manually searching for them. The time that could have been spent on extensive research reduces. Thus, it takes a few moments to understand the market trend. For example, traders would like to know:
• Percentage gainers and losers
• Stocks with the highest trading activity of the day
• The specific charts
• And stocks that break their daily highs or lows.
And most trading platforms come with basic scanners. These tools display the most considerable changes and high-volume stocks for each day.
A Stock Scanner
This tool is a trade alert scanner. In the market, hundreds of stock gap up and down daily. You, therefore, need to determine which ones you should trade that day and which one you should let go. This great tool filters out top quality stocks from subpar ones. It narrows down to get top 10-20 stocks that gap up every day.
Here is what to focus on: these features help determine stocks’ ability to make big moves. Stocks with:
• Less than a million shares (float)
• High relative volume
• Gap above resistance
• And gap below support
A Quick Review on Stock Scanner Types
Remember, in trading, you decide on what kind of analysis suits you and maybe, the style of trade you are planning to make. Thus, for long-term investments and swing trading purpose, you require a fundamental scanner. In contrast, for short-term or intra-day trading opportunities, a technical scanner is ideal.
Here is a takeaway for you: Online subscription-based scanners. Most popular subscription-based scanning services accelerate the process by providing pre-selected criteria through crunching the numbers on their servers and streaming the results online. They help a lot.
Beware: It’s not advisable to jump head first, though. You may quickly get hurt since you aren’t the only one privy to the scan results. Most intra-day traders can access it. It depends on the timeliness of the scan results. In a few seconds and minutes, a slight difference may occur which translates to a total loss or gain. See, you can lose everything or make a huge gain. Please place your orders when scan results pop up.
Bottom-line
Finally, whenever you need to invest in stocks with a significant price movement, get savvy with the market alert scanner for valuable and timely trade-related news feed. This information will help you trade on the trending market stocks.
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