Finding Promising Swing Trade Stocks with a Finviz Screener
Choosing stocks for swing trading requires precision and specificity that should not be left to chance. Fortunately, technology can narrow your stock choices to the best candidates for your strategy. No system is perfect, but stock screeners allow you to discover promising stocks more effectively than old methods in a fraction of the time.
This article features the Finviz stock screener because it is one of the best in the field. However, you can use the knowledge offered in this guide to use other stock screeners for swing trading.
What is a swing trade?
A swing trade is a trading strategy employed in financial markets. It typically involves buying or selling stocks, commodities, or currencies to capture short—to medium-term gains. Unlike day trading, which consists of making numerous trades within a single day, swing trading can last several days to weeks.
Swing traders analyze price patterns, technical indicators, and sometimes fundamental factors to identify potential opportunities. They aim to profit from the "swings" or fluctuations in the price of an asset, entering positions at points where they believe the price is poised to move in their favor and exiting before the trend reverses.
This approach allows traders to capitalize on both upward and downward price movements, seeking to generate returns regardless of overall market direction. Successful swing trading demands a combination of technical skill, market knowledge, risk management, and discipline in executing trades.
Does Finviz have a good stock screener?
Finviz is one of the top stock screeners available to traders and investors. Its reputation stems from its extensive suite of features, user-friendly interface, and real-time data updates. Finviz offers diverse filters, including market cap, price, volume, technical indicators, and fundamental criteria. These features empower users to tailor their searches to specific trading or investment strategies.
Additionally, the screener provides charting tools directly within the interface, allowing users to visualize price trends and technical patterns alongside screening results. Finviz's customizable options, such as saving filter settings and creating custom screens, further enhance its utility for users seeking to streamline their research processes. Finviz's stock screener is widely praised for its robust functionality and versatility, making it a go-to resource for traders and investors looking to identify potential opportunities in the markets.
What are some of Finviz's stock screener features?
Finviz's stock screener offers many features and filters to help users spot potential trading opportunities and investment candidates. Some of the key features include:
Market Cap Filtering: Users can filter stocks based on market capitalization, allowing them to focus on companies of various sizes, from small-cap to large-cap.
Price Filtering: The screener enables users to set specific price ranges to include or exclude stocks trading within certain price levels, catering to various trading preferences.
Volume Filtering: Traders can screen stocks based on average trading volume, ensuring liquidity for their desired trading strategies and minimizing the risk of price slippage.
Technical Indicators: Finviz offers numerous technical indicators and chart patterns for filtering stocks based on technical analysis criteria, such as moving averages, relative strength index (RSI), Moving Average Convergence Divergence (MCAD), and more.
Performance Metrics: Users can screen stocks based on performance metrics like price change, percentage change, and relative strength, helping them identify stocks showing strong momentum or trending behavior.
Fundamental Criteria: The screener allows filtering based on fundamental factors like earnings per share (EPS), price-to-earnings (P/E) ratio, price-to-book (P/B) ratio, dividend yield, revenue growth, and more.
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Sector and Industry Filtering: Users can narrow down their search by selecting specific sectors or industries, allowing them to focus on stocks within a particular sector or industry group.
Charting Tools: Finviz provides basic charting tools within the screener interface, allowing users to visualize price trends, patterns, and technical indicators directly on the stock screening results page.
Portfolio Options: Like many online screeners, the Finriz screener allows you to convert your swing trade stock picks into a portfolio portal. This portal includes real-time tickers of stock activity, alerts, an adjustable portfolio map, stock news on holdings, and portfolio weighting. I especially like this feature for managing simulation portfolios to test investing strategies.
Real-Time Data: Finviz provides real-time data updates, ensuring users can access the most current information when screening stocks and making investment decisions.
What's a good swing trade screen to start with?
As you become more familiar with the Finviz stock screener, you will likely adjust some settings to better suit your strategy. However, the following settings are influential in selecting potential penny stock swing trade investments.
Here is a description of the selected tabs for these stock screen settings.
Final note
Swing trading is a serious business. You could earn a lot of money, or lose a substantial portion of your wealth. Strategic decisions can not be reversed. This reality is why it's a good idea to approach investing like professional athletes approach competition. They spend most of the off-season preparing their bodies and minds for the growling and unforgiving competitive season. Before each contest, they practice relentlessly, listen to their coaches, and go through dry runs. The competition then becomes the period of execution.
Many trading tools and resources help you prepare for successful investing. A stock screener is one of the most useful. In one station, you can gather information about filtered stocks, set up mock portfolios to practice, and track your actual investments.
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