Importance Of Day Trading Software For Traders

If you know anything about the stock market, you must be aware of the importance of day traders. Day traders are those who make short-term trades to eke out profits on a daily basis. They buy and sell stocks with short-term profit in mind. One of the biggest benefits of day traders is that they provide the much-needed liquidity in the stock market as mentioned on

Over the past several decades, day trading has emerged as a very popular and lucrative activity but this has also resulted in a lot of competition as more people join the day trading circuit in order to benefit from the ample opportunities. The traders always needs to come up with new trading strategies in order to remain a step ahead of the competitors. These days, one of the best ways to stay ahead of the competitors is to use the right day trading software.

There was a time when manual calculations were enough to make money in the stock market but these days, everything moves at a very fast pace, especially with high frequency trading algorithms employed by hedge funds and other big institutional investors. Therefore, individual investors interested in day trading also need to get their hands on a well-crafted day trading software in order to make money in the stock market. There are a number of software options available in the market today.

Essentially, a trading software allows traders to make sense of the huge amount of data generated by the stock market trades. It helps traders in making sense of that data by providing various charts, by helping them understand the results of their strategies and other such things. Some software options also allow traders to execute the trade at preset criteria. In simple terms, it can be said that such a software has a number of benefits for the right user. Also, some high-end software allow traders to program in order to execute trades as per their requirements.

These software are available in desktop versions as well as in online versions. The online versions have the advantage of providing access from anywhere in the world and allows the trader to roam freely without worrying about accessibility. As far as choosing the right trading software is concerned, it is important for the traders to figure out their requirements and then, compare different options available in the market today in order to make the right choice.

If you are interested in day trading, the first thing you need to look at while choosing a software is ease of use and availability of features that you are most likely to use. The best way to choose the right software is to download the demo option on your PC or laptop. When you play with the software with play money, you’ll be able to get an idea of the ease of use of software and other features. Similarly, you can try out various online versions of trading software without paying any money. It is important to first play with the software and make sure that it is right for the strategies you want to follow before buying it.

Overall, the right trading software provides a lot of advantages to an experienced trader but it is important for a trader to research various options available today in order to get the features they want.

Tips On How To Choose Day Trading Software

Computer applications today, have made it much easier to automate-trading, particularly for the short-term and intensive activities such as day trading, which has made the use of different trading software extremely popular. Debates continue over profit potentials which can be derived realistically from the day-trading activities, due to brokerage commissions and fees are believed to deduct a significant portion of the profit potentials. For this reason, it becomes important to choose the correct day-trading software that comes with a cost-benefit analysis, an assessment of the applicability for individual trading strategies and needs, along with the functions and features that you need.

Day-trading involves time-bound trading activities where sell and buy positions will be taken as well as closed on one trading day. It is aimed at making profits at the lower price differentials at larger order volumes by selling and buying frequently, typically on leverage.
The functions and features available might differ between the different software packages and might come in differing versions. In addition to the brokers, the independent brokers also offer day-trading software that usually offers features that are more advanced.

Characteristics Of Good Day-Trading Software

– Platform Independence

Unless the trader runs algorithms that are highly complex for day-trading that necessitates high-end dedicated computers, then it is suggested to choose the web-based software offerings. The benefits are inclusive of no manual upgrades, installations or maintenance costs, along with connectivity that can be used from anywhere.

– Your Specific Requirements For Day Trading

Do you follow basic day-trading strategies to move the average-tracking on different stocks? Or are you interested in implementing complex delta-neutral trading strategies that include stocks and options? Do you require a Forex-Feed or do you trade on a specific product such as binary options? It is best to try out trial versions to assess the software. You can also check on the screen-by-screen tutorials when available from a vendor or stock broker to understand what is the right fit when it comes to your trading needs.

– Additional Features

Day trading is aimed at capitalizing on the short-term price movements that occur over the day. These short-term based price movements are driven mainly by the news along with demand and supply, along with other factors. If you are focused on day-trading strategies that require charts, news, Level 2 data, an exclusive connectivity when it comes to specific markets such as OTC, data feeds that are specific, etc. Then you need to find out if these will be included in your software or you would need to subscribe to these separately from different sources, which would then increase the costs.

– Analytical Features

It is also important to consider the analytical features on offer. Some of the more important ones include:

Pattern Recognition Or Technical Indicators

For the traders that are looking to take advantage of predicting future price directions and levels, there are a variety of technical indicators available. Once a trader has decided on technical indicators that they should be following, they need to make sure day-trading software they have decided on will support the needed automation for processing that is efficient for trades that are based on a desirable technical indicator.

Best Day Trading Software For Beginners

When considering the necessary Day Trading Software tools you will need to achieve success for any other type of training, avoid skimping on quality. It is highly advisable to only invest in the best tools that you are able to afford when it comes to your own trading business.

Dependent on the trading system that you are using, you might require the very best line-trading charts, efficient order-entry systems, or you may require something basic like a news-feed.

Below is a summary on what some of the experts suggest as the better Day Trading Software options available today. A few are free, while some are associated with an investment that is minimal.

Tradestation is regarded as one of the best charting platforms currently available. This includes a full-service broker, data and charting service that matches up to various trading types. This includes swing trading, day trading, options, equities, Forex, futures and long-term position trading. The developers from NetPicks use this software for creating their trading strategies that are highly successful.

Ninja Trader is another fantastic alternative to TradeStation, with outstanding order entry and charting platforms. Ninja Trader aren’t brokers, yet you are able to plug this software into a number of different brokers that include FXCM, AMP Futures, Interactive Brokers and more.

If you are not to be bothered by ads, then Tradingview offers coverage for the majority of markets. They also include alerts in the free-version.

Top Choices For Trading Systems

Counterpunchtrader is one of the superior trading strategies that works on the Ninja Trader and Tradestation charting platforms. This strategy is comprehensive which means nothing is left to guesswork when it comes to when and how to place trades.

It shows you all this information directly on the charts about:

  • Where you should get in
  • Where you need to set targets
  • Where you should set up a stop loss

Once you are inside a trade, it will show you how you should be managing your position in order to achieve minimal risks and maximum profits. It aims to keep you inside trades while controlling the risks bar-by-bar.

Overall, it offers traders with visual structure, directly from the charts and showing clearly where to place trades.
The structures on these charts show up entire strategies along with eliminating any guesswork about when you should be taking trades, the direction you should be trading in, where and when you need to exit and more. You will also notice how the targets are perfectly placed.

Consider looking at your price bar which is usually located to the right-hand side of a charge, and you have no indication on what you should be doing. Now imagine your trades set up with all the information that you need to make successful trades, along with every answer you need offered in real-time.

Trading is serious and consequences associated with your actions happen to be very important. It is impossible to win all your trades but when you use a great Day Trading Software such as TradeStation in addition to winning strategies like Counterpunchtrader, you can significantly increase your chances of winning more trades.