You may have come across an article that reviews different software on online stock trading, or the occasional “what to look for in stock trading software” review. You may have read up on a lot of articles pertaining to online trading, stock markets, speculative trading, etc. All these accumulated readings pale greatly in comparison to a hands-on experience, especially if you are serious about making profits of this kind of business.
This is the reason why you need to know precisely what to look for when it comes to stock market software.
3 Things To Consider
Obviously, online companies offering the said software have various packages that may include add-on programs, additional information and whatnots. Although a very hefty software package that includes every professional tool imaginable would be very much appreciated, this would also command a very steep price. If you are on a rather tight budget, there are certain things to look out for when buying stock trading software.
One: an information laced online manual or e-book (.pdf file containing information can also be counted.) Naturally enough, as a first time software user, the manufacturers cannot assume that you would know how to run the programs efficiently right off the bat. Aside from that though, this online manual or e-book should give you more information on the standard language used in the stock market. It is good if the said information source keeps boasting about secrets revealed to stock trading; but it would be better if it also gives you a concrete background on the basics.
Two: in regards to the actual software, an online tutorial program is a definite must. This is actually a great way to have that hands-on experience when it comes to stock trading. Also, a tutorial program can literally take you on a step-by-step journey into the world of financial markets. Usually, such tutorial programs would also provide you a free arena to actually perform trading minus the monetary risks. In other words, your baby steps would include trading without the use first of actual money. All other trading software programs should come secondary to this.
Three: another set of programs that should be included are analyses programs. Sadly, not every company offering online trading software includes analyses programs. The trend seems to shift now to software that dictates which markets you should look into, how much money you are to dole out and when to invest it. This may be great if you are really after the quick buck and that you do not want to particularly think for yourself. Besides, if all hell breaks loose, you can always blame the software, right?
The thing with analysis programs, especially technical and financial analyses, is that these are algorithm-based calculations specifically designed to take the data from past market transactions and plot out in chart form its predictions for market movement. It can give you a two-dimensional look at what kind of trading you are actually dealing with. However, a program (or any program for that matter) should not make the decisions for you. If you want to engage in a riskier trade (like speculative trading in FOREX, for example,) your software should help you calculate your risks, without hampering your choices.
Obviously, the computer mind is exacting; and you could always play it safe (algorithm-wise.) But often, the human intuition for betting on riskier moves can yield spectacular gains. Conservative measures or risk trading, whatever your choice may be, you would always find software with analysis programs to be crucial in decision making.