Many new traders make the beginner mistake of using the wrong tools. Using the right day trading software and day trading tools is critical to your success. While a skilled trader can make do with less than ideal tools, beginner traders need every advantage possible. That means making sure your equipped with the best trading software, scanning software, and charting software.
I often talk about trying to ride a road bike in the sand. The guy on the road bike will wonder why you are making it so easy. Make your life easier by using the best tools. There are hundreds of brokers you can choose from and they all provide traders with a different experience.
Generally I group brokers into various categories depending on what services they provide or what financial instrument they specialize in. For these reasons I use Lightspeed and consider them the best broker and one of the best tools for any trader. Now that you have your broker funded you are ready to start trading!
You need a way to find stocks to trade. Based on my Gap and Go and Momentum trading strategies there are only a few stocks worth trading on any given day. Knowing how to identify those stocks before they make the big move is what separates the most profitable traders from everyone else. I use Trade-Ideas for all my stock scanning software. Do you like trading Bull Flags? There is no software in the world that can scan the market and find winning stock setups better than Trade-Ideas.
You can use the charts that come standard with your broker. Those will work for a while, but eventually you may want to take it up a level and use charts that allow you to draw and write custom formulas. This is where eSignal comes into play. In addition to being fast and reliable, eSignal allows you to install custom scripts. From there we have to look for the news catalyst, the reason why these stocks are moving higher. Sometimes they are moving in sympathy with the market or a strong sector, but other times they have a unique catalyst like Earnings.
Understanding the reason why a stock is moving is important because some catalysts are stronger than others! I use Benzinga Pro to search for the latest headlines. Then during the day I listen to the Benzinga Pro Radio. They read the headlines and let us know when stocks are spiking, breaking news reports, etc. TAS Market Profile is one of the best day trading software programs on the street.
There are a couple different packages you can choose from depending on what you are looking for. This unique tool allows you to see stocks moving in different time frames with varying levels of buying or selling confidence at key levels.
This is a powerful addition to your charting software and is something I use everyday. The indicators and scanners work on a ton of different charting platforms including eSignal, Tradestation and Bloomberg. You can find a full list here. We recently just joined forces with TAS Market Profile in order to get you the best value for your buck! Check out the following link for more information on how you can save on TAS Market Profile subscriptions!
The Best Day Trading Software — Lightspeed rated 1 in our Top 3 Brokers Review There are hundreds of brokers you can choose from and they all provide traders with a different experience.
Trade-Ideas Stock Scanning Software Now that you have your broker funded you are ready to start trading!More...