As a day trader, the right trading platform is critical to your success. The widespread democratization of trading in recent years has facilitated a boom at online trading brokerages. With so many trading platforms to choose from, it behooves traders to make the right decisions upfront.
It is near impossible to successfully trade stocks without powerful, reliable, and up-to-date trading software. There are tens of thousands of listed stocks trading at any given time. These companies are listed on major bourses such as the Dow Jones, NASDAQ, S&P 500, Russell 2000, and others. Picking winners without innovative trading software is challenging, at best.
The best trading software makes it easy to engage in short-term day trading activities, courtesy of automated trading. On the one hand, top-tier trading software can substantially increase the profitability of your trades, but the benefits must be offset against cost factors such as brokerage fees and commissions.
Selecting the right trading software is therefore critical to your success as a day trader. Many experienced day traders have cultivated a profitable portfolio by way of incremental gains over time. Volume trading and small profits on day trades (buying and selling stocks within the same day) tends to result in an accumulation of profits over time.
The best trading software allows for greater flexibility, freedom, and focus when trading underlying financial instruments. Day traders can set parameters with trading software, in order to identify stocks based on price, volume, volatility, or any number of specifications. These powerful functions are performed automatically.
Traders do not have to manually scan stock lists, stock charts, and monitor price movements of myriad individual securities. This simplifies the entire trading process, and frees up your time to focus on the actual trading, not the research and analysis which is oftentimes clunky when manually conducted by human traders.
Benefits of the right day trading software
Day trading software needs to be effective enough to execute trades instantly, up-to-date with the latest pricing, and reflexive enough to meet the exigencies of individual traders. One of the most glaring problems of stock trading software is inaccurate pricing and data. In a world where real-time data and fractional numbers can mean the difference between success and failure, it is absolutely imperative to avoid less-than-optimal day trading software.
A lag in pricing updates can invariably lead to massive losses which the trader must eat, not the brokerage. Fortunately, you don’t need to rely on the vanity reviews provided on site by specific trading software companies; you can rely on the objective views and analysis of individual traders who have personally experienced what it’s like to use specific day trading software.
The benefits of picking the right day trading software include the following:
- Instant executions of trades
- Real-time news and market updates
- Up-to-the-second pricing on securities
- Highly responsive, reliable, and user-friendly trading sessions
- Automated arbitrage placement of trades [buy and sell orders] across different exchanges
Trading software and analytical features
Stock trading is predicated on intensive research, analysis, and forecasting. The best trading software provides a wealth of tools and resources for traders to use to better understand how the markets function. Analytical tools make it easier to analyze trades post fact, especially when scores of trades are being conducted on a daily basis. The right trading software is essential when it comes to automated trading. These computer programs are based on complex algorithms with pre-set parameters (conditions) for maximizing profitability. Powerful trading software such as StocksToTrade (STT) feature a proprietary algorithm known as Oracle which automatically assesses the most lucrative (in terms of volatility and pricing) stocks on the market.
Naturally, trading software must guarantee the integrity of the trades and the day trader’s account at all times. SSL encryption (secure socket layer), firewall protection, and separated, synced servers for data storage, serve traders well. Powerful trading software has the capacity to allow for in-depth assessment of individual stocks, with charts, graphs, and technical analysis. Many of the best trading platforms are web-based, not relying on manual installations of software, with updates and maintenance thereof. Plus, several of the world’s finest trading platforms offer paper trading accounts (demo trading accounts) with faux funds which mimic real market conditions.
Key components of effective trading software include mathematical modelling, pattern recognition, automation of trades, arbitrage opportunities, trend following, and various strategy-based approaches to trading. In general terms, trading software a.k.a. the trading platform may be a stand-alone product, or form part of a broker’s offering to traders. Provided the trading services are reputable, and assessed accordingly by traders, there is no reason to doubt the veracity of the pricing mechanisms, and account execution capabilities of these platforms.
The above information does not constitute any form of advice or recommendation by London Loves Business and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Appropriate independent advice should be obtained before making any such decision.