How to Use FINVIZ.com to Identify Stock Plays

FINVIZ.com is massive stock ticker database that helps users easily “visualize” stock movements and helps screen stocks more efficiently.  As quoted by FINVIZ:

FINVIZ offers the fastest and the most advanced stock screener available online, interactive markets maps, innovative market analysis and market intelligence solutions.

The power of this tool is proven, as the site is used by many financial institutions and investors including: SAC, Merril Lynch, Goldman Sachs, JP Morgan Chase, Oppenheimer, Morgan Stanley, Charles Schwab, Bank of America, and the list goes on.

While I encourage you to go out there on your own and explore the features this site offers, here are some of the way I utilize FINVIZ to identify stock plays.  You can go to “Screener” page on the menu to get there:

• Biggest Gainers and Losers – I look at this section to identify potential stocks that made a huge gain/loss that day and are prepared to continue their trend for a few additional days.  I also see if the stock has recently reversed its trend and ready to develop a new trend.  I must warn you that the stocks on this radar are usually very volatile stocks like penny stocks, so be very careful when playing these stocks.  See example below on a multi-day rally after showing up on FIVIZ’s radar (biggest gainer):

• Unusual Volume – When stocks have an unusual volume on a particular day, it signals that something’s changed and future big moves (up or down) are likely.  A big news like bankruptcy, bio tech companies getting their drugs approved by FDA, you get the idea.  Whatever it is, I see it as a potential opportunity to play these stocks up and down.  Again, be very careful and set tight stops since the next few days or weeks will be extremely volatile.
• Insider Buying/Selling – FINVIZ has a whole page dedicated to the list of recent insider activities.  Many traders use insider buying or selling as a future indicator, so I go here to see if there is anything that comes to my attention.  I’m not too big on making my financial plays based on insider movements, but it is a useful way to confirm the reasons behind a certain price movement of a stock.  For example, if you see some unusual advancements in stock for no obvious reason (ie. no public news), it could be that there are some insider movements.  You can go to FINVIZ to confirm that.
• Various Technical Indicators - Double Top, Head and Shoulders, Triangle Ascending/Descending, and many other technical indicators are always important to note.  FINVIZ easily helps you identify them using the screener.

There are clearly many additional features you can use FINIZ for.  Again, spend some time digging and find your own ways to take advantage of this free and power tool.