What do you know about trading software? You purchase software, it trades for you and you’ll become rich? Follow this article to learn something about trading software & systems.
How works a Trading Software
Before using trading software, you should have enough experience on investing in the stock market. Then you define your rules for software and it scans to finds what stocks are matched to your rules and makes sell or buy signals.
After software makes trading signals, brokers execute orders. Placing orders can be done by software or manually, it depends how you’ve programmed the software.
So, the process is:
1. You write your rules for software.
2. Software finds matched stocks to your rules and makes trading signals (sell or buy.)
3. Orders executed by broker.
Enough experience is Needed
As I said you should have enough trading experience in the market, in other words the ingredient for using software is experience plus a good understanding of technical analysis.
But, if I have enough experience, why I need software?
Advantages of using Software
1. Saving Time
There are so many stocks for investing; software scanning tools scan many stocks in a little time for investment opportunities based on your strategy.
2. Avoiding of Emotions
One of the most important reasons that cause investors loose is emotions. Investors always decide to avoid emotions but, they fall to this trap again. With using software you can control your emotions.
3. Managing your Portfolio
You can monitor your stocks and control your investment risk.
How to use Trading Software
1. Necessary for short term Investors
Software is necessary for day traders, swing traders and option traders. In general software is suitable for short term investors. If you are a long term investor, it may not necessary for you.
2. Choose software that fits your Needs
There are different kinds of software with various prices. Find what is suitable for your needs. Trading software packages can be divided into semi and fully automatic.
Fully automatic software can be programmed to buy and sell stocks automatically but, in semi automatic one you yourself place orders to brokers.
Before purchasing stock trading software, try their free trial version or buy a 100% money-back guarantee.
Some of famous software packages are: MetaStock, Tradestation, Interactive Brokers, Wealth Lab, AmiBroker and Tradecision.
For more info read: Choose best Stock Trading Software
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