Trading software is aimed to help investors improve their stock picking decisions through its fundamental analysis and advanced technical analysis. It is something I rely on to pick out shares quickly and recommend to all types of traders.
Note: the majority of trading software does not allow you to buy and sell shares for real. A brokerage account is required for that.
1. Trading software is flexible and lets you customise multiple items on your own charts, such as resistance lines, indicators, sector comparisons etc. Most importantly however you get to save these customisations, something websites can't do meaning you have to edit your own indicators etc. every time you view a different stock or log in again.
2. Most trading software allows you to enter your own formulas for picking stocks, which means you can filter out your own stocks set on your own criteria quickly.
For example you could add a filter that includes stocks whose price has increase 10% over the last 3 months and whose average volume has increased 5% in the last week.
3. Because it is software it will
run off your computer making switching between stocks rapid (because a computer processor is much faster than downloading from the internet). If you were to use a website that offered similar services it would take an age to flick through 10 different stocks (never mind 100) as you would have to download a different web page for each of these stocks. When you are day or swing trading it is very important that you can switch between stocks quickly.
The main benefit of trading software is the time it saves you compared to using a website. This being especially useful if you have a full-time job and set aside only a short period of time a day to trade and earn additional income on the stock market.
Trading software is normally offered by companies in two or three packages. If your after a flexible customisable package then I recommend Telechart 2007 as there are endless ways of filtering out stocks.
- Package A will update at the end of each day, good for position and some swing traders.
- Package B will update every 15 minutes, great for swing traders.
- Package C will be a premium package and will update second by second, excellent for day traders.
View our list of recommended trading software.
