Despite common misconceptions, successful stock trading involves a lot more than just buying low and selling high. It is an incredibly complex process and so there is new software being developed every day to support stockbrokers. This software has various functions from research and stock screening to analysis. Many of these software options are offered by brokerage firms or vendors as a way to attract traders to sign up. If you are looking to increase your success in the market, it is important to implement the right software.
This article is our guide to six pieces of software that every stockbroker needs.
- Stock Screening Software
Another vital piece of software for any stockbroker is high-end stock screening software. In the last ten years, stock screening software has quickly gained a high number of users as they can analyze stocks using technical data and fundamentals. There are various stock screening software options available and this article can give you the lowdown on one option available to you. Stock screening software offers real-time data to keep you up to date with the latest market developments, pre-market data to help you get ahead of the game, statistics views to provide a breakdown of sectors, countries and industries, correlation features to help you diversify risk, and alerts to inform you of sudden changes in the stock market. What makes a good stock screener is its advanced features, including the ability for users to analyze moves in the market by reviewing the advanced charts and historical data, or to filter and export data when needed.
- Technical Indicator Software
This is one of the single most important pieces of software for any stockbroker as it helps to predict where the markets are going and to understand why they are acting like they are. Top software provides up to 300 technical indicators as well as integrated applications for news, data screening, and filtering, with global market coverage on a wide range of assets such as forex, equities, commodities, and futures, etc. With some research, it is possible to find a one-stop-shop product that provides you with real-time data and news coverage as well as fundamentals and analytics, as well as daily charts for aftermarket analysis.
- Strategy-Testing Software
High-activity traders need quality strategy-testing software, which has years of historical data for options, equities, and futures, as well as many other useful features. The best strategy-testing software options execute automatic trade orders based on custom buy and sell rules, and traders can also do backtesting and choose from third-party applications or add-on products connected to the software. The best strategy-testing software products on the market integrate excellent charting and technical analysis tools so that you can plan every move to the minutest detail.
- Research Software
The best stock research software options incorporate multiple features and tools for different price points but are effective as an excellent one-stop-shop solution for charting and trading. Traders can access many useful features such as the global coverage on different asset classes, news and figures coverage, backtesting, alerts, and stock customization. Different asset classes are available including options, futures, forex, and stocks. Many research software options are available for a 30-day free trial period so you can give it a test drive before paying.
- Charting Software
Charting software is vital for stock traders for performing live trading and checking the minutiae of each transaction. The top-rated charting software options provide the usual technical indicators, fundamentals, and tools for research and analysis, but their trade simulators are particularly helpful for new traders who want to get some risk-free trade learning. On the free versions of the software you can both practice and do actual trades but you will have to pay commission on your live trading profits.
- Training Software
If you are a beginner, it is vital that you choose a quality training software so that you can learn how to trade without losing any money. You can risk a lot of money if you start trading without getting the requisite training first so you need comprehensive software that incorporates all the tools you need without having to switch back and forth between programs. You can create watchlists, view multiple charts at once, scan for information, check out the analysis, and view price actions in any time frame. Top training software is designed for traders of all levels so as you progress, you will still be able to find it useful software.
Whether you are a long-term investor or a day trader, you will need the diverse features of these software options to trade successfully. These options will not necessarily turn you into a professional stockbroker overnight, but they can help you achieve your goals and targets. Everyone has different preferences, so finding the software that best fits your trading style is the key to improving your success in stock trading.