(Newswire.net — October 26, 2019) — Automated tools help by making trading more manageable and accessible to all. However, novice traders often make the mistake of using the wrong tools, thus impacting their business negatively.
Here is a list of 5 critical tools that will help you trade better.
A reputable trading platform
This is the foremost step to trading. You need to look for a good trading platform, which can become quite challenging at times. This is because most of the time, automated trading systems tend to have higher trade commissions or require a minimum account balance or a minimum number of trades to access the platform.
But if you dive a bit deeper, you will find several trading platforms that are accessible to all and have flexible eligibility requirements.
Stock screeners
Stock screeners help lighten the weight on the trader’s shoulders. It allows traders to quickly search for a stock based on their predefined criteria. For instance, dividend yield, market capitalization (refers to the size and value of the company), share price, or industry.
Most of the trading platforms being offered by the brokers today include a screener. Some brokers also provide screeners for exchange-traded funds, mutual funds, and so on. Advanced trading systems give you an in-depth screening capability that helps dial down to trade opportunities.
A mobile trading app
Trading requires serious attention and time investment from the trader. If you are serious about trading, having the opportunity to trade on the go can prove to be very beneficial. Therefore, it is highly advisable to choose a broker with a mobile trading app.
These apps provide a variety of options. These range from the ability to execute necessary trades and view quotes to near mirror images of a desktop or web platform. Some apps also offer advanced options like charting, screeners, and complex options trades.
Stock charts
Charting is one of the vital components for any trader who employs technical analysis. It involves evaluating the past movements in the trade as a means to predict future performance. Stock charts help by displaying the performance of security over time, allowing traders to recognize patterns and have a look at various technical indicators.
Thus, charts can be used to dig into a stock’s history and identify its volatility component. It also allows one to compare multiple securities and benchmark performances to indexes.
Idea generation tools
The days when startups were solely dependent on individual creativity and ideas are gone. In today’s times, there are multiple ways to come up with exciting trade ideas, including subscription-based services. These websites help by offering live marketing updates, previews to emerging growth stock opportunities, seasonal stock trends, and so on.
Apart from this, traders also research stocks using fundamental analysis. This involves digging into financial statements, outside research reports by professional analysts, and company news. This research helps in understanding the functioning of the companies leading to new trade ideas.