When it comes to trading and investing tools and software, there is a never-ending list to choose from. These can be simple tools like alerts for when stocks hit a certain price, all the way to more complex and detailed charting software.
Whether you are into FX trading or spend your time on the stock market, here are some tools and pieces of software that will take your trading game to the next level.
The very first thing you will need to invest in is an extra monitor. Trading is all about data and what information you have available; the best traders are the ones that can see and know every detail about a stock before they buy or sell it.
An extra monitor may sound like a luxury, but it is precisely what you need to have greater access to more information at one time. If you want to go to the next level, you can have a third monitor, one for current news, one for your trading platform, and one for social media.
Once you have your trading account and you have deposited money, the next step is to begin trading. However, with only a small number of shares available each day that are worth trading, it is hard to know where to start.
TradingView shows you all the best stocks for that day, their highs and lows, volume, price spikes, etc. This allows you to quickly find and analyze the best stocks for the day and also ensures you don’t miss out on any hidden gems.
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Before you get into trading, you should make a checklist that you use to assess a stock, crypto, or whatever it may be before you buy it. Even if you have only been trading for a few weeks, you have most likely bought into something you wish you hadn’t.
A checklist can be as simple or as complex as you want, but it should be your mini-guide when deciding what you should and shouldn’t buy.
A screenshot freezes a moment in time and allows you to look back at it and analyze that moment. In trading, you should get into the habit of screenshotting, and storing, your entry and exit positions for each trade.
You can then look back and ask yourself, “Did I follow my checklist?”, “did I sell because of logic or emotion?”; these screenshots can be used as mini-lessons to help you improve your trading.
While not a specific tool, Yahoo Finance, CNN, Reuters, and many other news sites offer live stock market news throughout the day, it will be general news and most likely not about what you are trading. However, it is still essential to be in the loop.
It is also important to get news from multiple sources as well. A lot of what happens in the stock world is speculation, and that speculation can change depending on who is doing it. Don’t rely on a single source, but rather corroborate information using multiple sources.
Watchlists are a great way to keep track of opportunities without you having to remember them. Whether you use a spreadsheet or a notebook, being able to check your list every day and go see how the stock or option is doing means you will never miss an opportunity.
Another tool that will be up to you is charting software. If you have been trading for a little while, you have probably become very familiar with how essential charts are and being able to chart your stocks and trades.
Charting software is absolutely essential for technical and trade analysis, as well as one of the best tools for executing trades and trading strategies. One of the most significant differences between good and great traders is how they use charts and charting software to trade.
An economic calendar can be nothing more than a regular calendar that you fill in with financial events. Whether it be the day a report is released or the day taxes go up, whatever it may be, put it in your calendar.
The last thing you want to do is wake up one day and your investments have taken a hit because of a particular event or report release. Make a habit of filling in every important date or event that applies to you, and check it every day.
Strategy Hard Copies
While living in the age of technology clearly has its perks, sometimes there is nothing better than the humble pen and paper. When it comes to trading strategies, you are often making adjustments or trying to remember certain things about them.
Having hard copies of your strategies is one of the best tools in your belt. You can make notes and refer back to them whenever you want. You can do this with other things such as charts and printouts of patterns; eventually, the information will be ingrained in your head.
Never underestimate the power of social media when it comes to trading. Almost every financial and stock expert has a Twitter account where you can keep up with what they are thinking, and trends they believe will take hold.
Recently, Reddit has also emerged as a great source of useful information. There are many subreddits dedicated to stocks and trading. Even accounts that are viewed as “meme” accounts, such as Wallstreet Bets have proven to get stock choices right more often than not.
No trader worth their salt doesn’t keep a trade journal of some description. This journal is used to track trades, the highs, and lows, when you bought and sold, and, more importantly, the strategy you used.
The last thing you want to do is make a highly profitable trade and not remember the variables that were part of it. As mentioned, a big part of trading is recognizing patterns; a trade journal will help you track these patterns.
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