Day trading is a very risky and challenging pursuit. Buying and selling stocks in the very same day, hoping to make money off small fluctuations in the price of a share just over a six hour period. In the past day trading was quite difficult because there were no available tools but today with high-speed internet connection and some guts, anyone can day trade. But it doesn’t stop there. Many amateur traders make the mistakes of using the wrong tools. Using the right day trading software and tools is important to your success in day trading. Although a professional trader can do with less ideal tools, an amateur would need every advantage possible. It’s not about how much you invest, it’s mostly about usingthe right tools. That means being equipped with the best trading software, charting software and scanning software. By investing in the best tools you would be making your life and career as a day trader easier.
Let’s guide you through the 5 tools everyone in the day trading should be using.
- Trading software: There are several brokers you can select from and they all provide different trading experience for traders. The best way to pick is to group them under the services they provide or based on the financial instrument they specialize in. For day traders you would need features such as fast executions, direct access routing, hot keys etc. When selecting a broker know that you’re picking a tradingsoftware as well. A good recommendation is Speedtrader. They’re considered the best broker and one of the best tools for a day trader. Suretrader is also a great option.
- Stock scanning software:After you must have funded your account you can now start trading. You would need to find solid stocks to invest in. stocks that are truly worth trading in. And knowing the best way to know these stocks is what separates the professional traders (people that make lots of money) from every other person. This is where a stock scanning software comes into play. A good recommendation is Trade-ideas. You can utilize their predefined searches to see volume spikes, HOD movers, biggest gainers/losers etc. There is no better software that scan the market and find winning stocks setups better than Trade-ideas.
- Charting software: You can use charts provided by your broker but eventually you would need to use charts that allow you draw and write custom formulas. eSignal comes in here. It’s a charting software that allows you to easily run charts on up to 8 monitors without lag time. It also allows you install custom scripts.
- Breaking news provider: Start your day by reviewing stocks on Trade-ideas. Then look for the news catalyst (reasons why the stocks are moving higher). Use Benzinga Pro to sort for the latest headlines. They let you know when stocks are spiking, reports, breaking news, etc. These breaking news feed can make you a lot of money.
- Moving average: This is usually incorporated in trading software. It is the plotted line that measure the average price of a currency pair over a specific period of time. It makes it simpler for traders to pick trading opportunities in the direction of the day’s trend. When the market is trending, you can use moving average or multiple to identify the trend and the right time to buy and sell.Author Bio: The stock market experts stockradar.in are professional traders and research house which endeavor to provide best winning trading strategies to the traders so that they stop losing money and start making consistent gains from the stock markets .