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They say a workman is only as good as his tools. The modern stock market seems to adhere to this principle perfectly. You will not compete favorably without an arsenal of digital tools to assist with the analysis and simplification of market activities.
For newbies, here are five essential tools that separate the successful traders from the average ones:
1. A good trading platform
A reliable and easy-to-use trading platform should be the first item in your trading toolbox. There are many trading platforms targeting different types of traders. Ensure you choose what suits your trading style and fits into your budget.
Note that the most advanced platforms come with the highest commissions and most trading prerequisites, so it’s not just about choosing the best-reviewed platform on the internet.
2. Stock screener
Stock screeners are tools that let you screen or filter stocks using specific indicators and ratios. They reduce the homework you have to do before settling on an investment opportunity. A proper stock screener can help you make significant headway in the stock market, but you still have to complement it with in-depth research. A screener should help you build a watchlist; beyond that, it is the comprehensiveness and accuracy of your research that will determine whether or not you make good.
3. Stock charts
If you are the type that does independent analyses of stocks, using past curvatures to predict the future, stock charts are a must-have tool. What top traders used to do manually years ago has been reduced into a simple affair of keying in figures and letting an application perform the rest of the analysis. A stock chart software tool helps you assess the performance of a security or stock and make more informed projections. Albeit anyone can use them, stock charts provide the best value for money for traders with long term objectives.
4. A mobile app
If trading is your day job, you need a mobile version of your PC trading tool or, at least, an app that works in a similar manner. Common mobile apps are equipped with features that let you view quotes and perform basic trades. The more advanced ones are almost as comprehensive as desktop software, though you may find it more convenient installing dedicated applications for specific functions, including stock charting and screening.
5. News provider
Every smart trader starts their day with a review of what’s making the headlines in the stock market. The idea is to identify which stocks that are going up and why. Sometimes they are making headway in tandem with the industry progress. Other times, there is a catalyst behind them that the trader needs to learn about.
A good news app not only gives you the latest headlines but also breaks down the backstory, so you can perform a more guided analysis.
Conclusion
Stock trading is a whole world of knotty pathways that you cannot maneuver without a proper plan. The above tools can help you simplify the hassle, enhance your performance, and cut back on the risks.
