Stock market trading is a fun and lucrative way to make money. With a little knowledge and a computer, anyone can make money from price fluctuations. There are many software and trading tools that can help you spot profitable setups and better analyze trading data. Although stock analysis software will not make you Warren Buffet, it will help you to refine your strategies and improve your trading decisions.
Technology and trading: A match made in heaven
big data is taking the trading industry by storm. Analytics technology has allowed traders unprecedented access to information to help them make better decisions. This increases the probability of making profitable trades and reduces the time needed to analyze the markets manually.
Machine learning and AI have made great strides in the short time they have been around. They have helped to speed up trade execution, better predict markets, and execute trades at optimal times.
Let’s now look at three different ways that you can use this technology to your advantage to improve your trading skills and your trading decisions.
Ask any trader to name the most tedious part of their job, and nine out of ten they will say it is looking for setups. When deciding whether to enter a position, traders tend to have a set of criteria. It doesn’t matter if you’re looking for stocks trading at all-time highs or reaching levels that are overbought, oversold, or close to support and resistance zones. Scrolling through the markets is difficult.
Technical stock scanners take this burden off your shoulders, allowing for quick searches for stocks using pre-selected criteria you have defined. These tools eliminate the need to spend hours searching the market for the right stock. This allows you to spend more time making profitable trades than looking at the screen.
Most traders know that one of their biggest problems is staying awake at night and not engaging in risky trades. We are all human and it is not difficult to spend hours staring at a screen, without ever entering into a position. Stock scanners eliminate this concern and dramatically reduce the chance that you will trade based on emotions. This should help to improve your bottom line.
High-quality stock charts
A key aspect of being a successful trader is knowing how to read charts. The more you are able to read charts and interpret the information, the better trader you’ll be. The more accurate and current your charts, the better.
Charting software is not all created equal. Some companies have more advanced charting capabilities than others. Charting software is available with many features you can use to your advantage. These features let you dig deeper into the stock history to predict future movements, and help you spot opportunities that you might miss without this additional information.
You can typically access quite capable charts with most brokers. If these resources are insufficient, you can always look at other resources like TradingView, FINVIZ, and Stockcharts.
Also read: Top 10 Tips For Successfully Trading
Trade idea-generation tools
The million-dollar question for traders is when to open or close a position. We have seen that traders use a variety of tools to determine the best setups. These include stock scanners and charting software. This leaves traders with a lot to do and lots of information to analyze.
There are many idea generation services available that can be subscribed to. These services will point you in the right direction, and highlight important events that may interest you. There are many online services that provide regular updates about things such as:
- Exciting growth stock opportunities
- News about IPOs (initial publicly offered)
- News from the company
- Research reports
- Financial statements
This information is easy to access and allows you to stay up to date with market developments. This also gives you a better chance to identify interesting stocks and trading opportunities, which would otherwise require a lot of research.
You’re likely to lose profits if you don’t take advantage of the incredible trading technology available. You can become a better trader with the tools, software, or services we have listed. They will streamline the process and improve your overall accuracy.
It’s obvious that traders who are most successful have the best access to information. So get on board and get your trading game up to the next level!