10 Stock Trading Tools (That Every Trader Should Have)

Stock buying and selling was as soon as a sport solely inventory market professionals on Wall Street might play. The plenty might solely entry markets via a dealer, they usually took the long-term method to constructing wealth. 

That’s all modified. Technological innovation has opened the door to on-line buying and selling in almost each monetary market. Swing, momentum, and day merchants alike make a dwelling out of utilizing numerous buying and selling instruments to take advantage of the volatility of shares for fast earnings, and the development continues to develop in recognition. 

There are a number of instruments you should utilize to grow to be extra profitable as you commerce shares. Some are must-haves and a few are non-obligatory instruments which have the potential to tremendously develop your profitability.  

Active merchants know that should you blindly throw cash into the market, likelihood is you’re going to lose cash in the long run. Instead, they use a variety of instruments to deploy confirmed methods and enhance their possibilities of producing earnings. 

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1. Trading Platform

You can’t successfully commerce on-line and not using a buying and selling platform. Although all of them are considerably comparable, every platform is exclusive, so it’s vital that you simply select your platform properly. 

The finest buying and selling platforms for lively merchants present a variety of technical evaluation instruments, charting capabilities, and in some circumstances, backtesting, paper-trading accounts, and different instruments for growing a strong technique. More on a few of these later.

One of essentially the most sturdy platforms is TradingView. It comes with backtesting software program, buying and selling simulators, and a variety of different instruments for perfecting your technique, analyzing the market, and bettering your total buying and selling efficiency. The solely downside is that it solely works with a choose few on-line brokers as a result of it was designed as a charting platform fairly than a buying and selling platform. 

Brokerages additionally generally supply state-of-the-art buying and selling platforms for his or her clients. The thinkorswim buying and selling platform has made TD Ameritrade a well-liked selection amongst day merchants. Similarly, Interactive Brokers grew to become a well-liked selection by providing distinctive order varieties and technical indicators with their platform. 

2. Trading App

The inventory market doesn’t shut down once you’re on the go. It’s vital that you’ve got entry to the market always. That’s the place cell apps are available. 

Just about every part occurs on the go lately, and buying and selling doesn’t should be any completely different. Most of the perfect buying and selling platforms include a cell app that’s simply as intuitive. 

Never get caught holding the bag since you’re not at your laptop. Always be able to commerce on the go. 

3. Stock Screeners

There are hundreds of publicly traded corporations within the United States and tens of hundreds around the globe, so discovering the proper buying and selling alternative will be like discovering a needle in a haystack with out the proper instruments. 

Stock screeners are among the finest instruments for locating the forms of alternatives you’re searching for.

Stock screeners are items of buying and selling software program that search the marketplace for particular parameters you set. They usually yield matches in a matter of seconds, though essentially the most sturdy inventory screeners comb via important quantities of information and might take a few minutes to provide outcomes. 

Nonetheless, should you tried to comb via the marketplace for alternatives, analyzing them on a one-by-one foundation, likelihood is you’d by no means have time to make a commerce. Stock screeners make this potential with just a few clicks.  

4. Charting Software

Most high quality buying and selling platforms include sturdy charting software program, however there’s no disgrace in including further instruments to the field. The finest charting software program provides as a lot real-time information as you may match on the display whereas making the information straightforward to learn. 

The finest charting instruments supply a protracted line of technical indicators and drawing and evaluation instruments. Some, just like the charts at TradingView, even supply candlestick sample recognition, so recognizing entries and exits is a breeze. 

5. Backtesting Software

Any buying and selling technique you come throughout or develop might look like the perfect factor since sliced bread. You might make sure it’s going to work, however skilled merchants know it is best to at all times take a look at your technique earlier than deploying it in actual life. 

The first step to testing a buying and selling technique is to run it via backtesting software program. Backtesting is the method of analyzing your technique utilizing historic market information to see how it might have carried out prior to now. 

Don’t fear, you don’t should go day-to-day, tick by tick, doing the mathematics by yourself. There are numerous backtesting software program suppliers on-line. Some of our favourite choices embody:

  • Trade Ideas. Trade Ideas is a premium buying and selling instrument that earned its place as our total finest decide for backtesting software program once we analyzed the completely different companies obtainable. 
  • TradingView. If you’re searching for a free backtester, TradingView is the best way to go. 
  • Interactive Brokers. Interactive Brokers has a basic backtester that places a singular spin on a course of that normally solely values technical information. 
  • MetaStock. MetaStock’s backtester is coupled with a forecaster so you may see how your technique would have achieved prior to now and the way probably it’s to achieve success sooner or later. 

6. Trading Simulator

Trading simulators, additionally generally referred to as demo or paper buying and selling accounts, aren’t only for rookies. They’re one other instrument skilled merchants use to develop and excellent new buying and selling methods.

Trading simulators mimic the real-life buying and selling setting however utilizing digital cash. No, not Bitcoin; fully worthless cash in a simulated account. 

Why?

You can use the simulated foreign money to check your technique with out risking any of your hard-earned capital. If all goes effectively within the buying and selling simulation, and all went effectively within the backtests, you may enter the markets with confidence utilizing your actual cash, realizing your technique has a excessive chance of success. 

7. Commission-Free Brokerage Account

When the web made the inventory market obtainable to everybody, there was a caveat. You needed to pay for entry. Just about each unique on-line dealer charged a fee each time you made a commerce — and it made sense. That was the best way of the standard stockbroker. 

That doesn’t work too effectively for lively merchants. After all, should you’re a scalper who makes 10 to twenty or extra trades per day, the $4.95-per-trade charges eat your profitability. That’s why you want entry to free buying and selling via a commission-free dealer. 

There are a number of brokers that supply zero commissions on home shares and exchange-traded funds (EFTs), together with:

  • Charles Schwab. Charles Schwab earned our greatest total decide amongst commission-free brokers. 
  • TD Ameritrade. TD Ameritrade has climbed via the ranks to be probably the most in style brokers amongst lively merchants due to its thinkorswim buying and selling platform. 
  • Robinhood. Robinhood simplifies the buying and selling course of, making it our greatest decide for rookies. 
  • WeBull. WeBull provides a easy platform with a number of superior buying and selling instruments. 
  • Fidelity. Fidelity is a favourite dealer for no-cost ETFs, however they’re additionally a compelling selection for lively merchants. 

8. Idea Generator

One of the toughest components of buying and selling is discovering high quality buying and selling alternatives. That’s why {most professional} merchants use a number of instruments to generate concepts. Some of the perfect thought era instruments embody:

  • Social Media. Supply and demand dictate worth motion out there. Professional merchants scour social media to seek out out what the plenty are speaking about and why. Then they use that data to take advantage of the volatility in these property for a revenue. 
  • Signal Services. There are a number of buying and selling sign companies on-line. They typically use buying and selling algorithms to identify high quality alternatives and notify subscribers. Each message comes with a inventory, entry, exit, stop-loss, and normally an outline of what makes the commerce a compelling alternative. 
  • News Feeds. The information strikes the market. Earnings experiences, mergers and acquisitions, new product bulletins, and administration adjustments all have the potential to ship a inventory screaming for the highest or crashing to the underside. That’s why the perfect merchants take note of information feeds after they search for the perfect buying and selling alternatives. 

9. Trading Journal

Trading is rather like the rest. The extra you do it, the extra expertise you acquire, and the higher you get at it. However, the educational curve between newbie and skilled doesn’t should be so steep. One of the perfect methods to flatten the educational curve is by utilizing a buying and selling journal. 

You can manually journal your trades, however you don’t should. There are a number of buying and selling journal suppliers on-line that may automate the method. Some of our favorites embody:

  • Edgewonk. Edgewonk earned its place as our greatest total buying and selling journal. The low-cost platform provides detailed commerce analytics, high quality backtesting instruments, and even emotional analytics that can assist you maintain your feelings in examine as you commerce. 
  • TradeBench. If you’re searching for a free possibility, TradeBench is the best way to go. There aren’t any paid subscription choices. The firm makes all its cash via promoting. 
  • Trademetria. The problem characteristic of the Trademetria buying and selling journal is each helpful and pleasant. When you discover areas to enhance, you may create challenges that can assist you concentrate on these areas of your buying and selling technique. 

No matter what buying and selling journal you employ, logging all of your trades and studying your journal as soon as per week will make it easier to keep away from errors and enhance your buying and selling decision-making course of. 

10. Educational Tools

The most profitable merchants are those that took the chance to coach themselves on the method. Most lively merchants lose cash, so it’s vital that you simply perceive the complexities of the market, what makes an efficient technique efficient, and learn how to handle danger earlier than getting began. 

Don’t fear, you don’t want a doctorate diploma to achieve success. However, it doesn’t damage to take a web-based buying and selling course or two. Some of the perfect buying and selling programs embody:

  • Trade Ideas. Trade Ideas has a superb buying and selling course that teaches you every part from the fundamentals to complicated subjects, and it comes with instruments together with a man-made intelligence that may make it easier to grow to be extra worthwhile. 
  • TopStep. TopStep doesn’t simply train you learn how to commerce, it places its cash the place its mouth is. TopStep makes use of its personal cash to fund your buying and selling account and allows you to maintain onto the primary $5,000 in earnings. After that, you need to conform to an 80/20 revenue share, however that’s effective as a result of your cash isn’t in danger. 
  • Warrior Trading. We have been additionally impressed by Warrior Trading’s in-depth academic sequence, webinars, and buying and selling classes. 
  • ThomasKralow.com. Finally, ThomasKralow.com allows you to be taught at your individual tempo with a extra conventional training format. 

Final Word

You’ll by no means see a roofer get on a roof and not using a toolbelt. If you wish to be a profitable dealer, you should have the instruments for the job. 

If you might have all of the instruments talked about above, you might have every part you should develop a strong buying and selling technique, discover commerce alternatives, analysis and analyze trades, and in the end flip them into earnings.