Selecting a Good Stock Market Trading Software Package
There are so many different stock market software packages on the market that you could try a different one, every day of the year, and never run the same one twice.
Many professionals use some type of software to keep their emotions in check and to enable them to focus on their strategies while avoiding the effects of fear and greed.
In general, stock market trading software can help you in the following areas:
- Identify Channel Breakouts
- Generate high probability mechanical buy/sell signals
- Control your dollar risk
- Forecast new tops and bottoms with great accuracy
- Reveal trading trends for any time frame
- Curb your tendencies toward Fear and Greed
Software has no emotions. It doesn't love or hate the stock that you own and it doesn't want to get rich. It simply crunches numbers and tells you what it "thinks" about when to buy, sell, or hold. And while it is not flawless, it's a lot smarter than most of us are.
Trading Software is not really a necessity if you are investing in stocks and will be holding them for long periods of time. If, however, you are day, swing, or position trading, then it is an absolute requirement for you to be able to watch every up and down ticks, monitor your short positions, and stay on top of your stop loss settings. This is where trading software excels.
Before selecting a software package, download and try it out first. If the program that you are considering doesn't have a free trial, or a 100% money-back guarantee, then pass and look for another.
Although there are software packages that specialize in one particular function, such as providing real-time stock quotes, for example, you would be better off to select an all-in-one package that provides everything you need to make informed decisions. As a minimum, your software should provide the following:
- The opening price of the day in each market to determine price direction.
- Telltale signs in the market that signal a breakout to the upside (or downside if trading short) is coming and allow you to position yourself to profit with the move.
- Moving average monitoring that shows you the average price of a security over a specified time period, used in order to spot pricing trends by flattening out large fluctuations.
- Trigger monitor that will alert you to preset events such as reaching a specified price target or some other event that alerts you to take prescribed action.
- Pattern Identification so you can identify patterns in any market and use them to your advantage. This gives you a greater chance of selling at the top and buying at the bottom of the markets.
Stock trading software is a must have for all serious traders. You cannot afford to trade in today's markets without having the impartial advice and inside intelligence that good software provides.
Reproduced off www.stock-trading-advice.com