Advantages of Stock Trading Software
Trading in the stock market has come a long way from its initial beginning. Earlier, when computers were not used, stock exchanges were held at physical exchange locations. Traders used to gather at pits to buy and sell securities through open outcry. In 1971, physical trading was replaced by electronic trading. The discovery of the internet opened up the industry to new technologies.
Stock trading software provides analysis tools for financial traders and investors which help them to trade and manage accounts for the stock market.
Here are the key advantages of using trading software:
These softwares are flexible and can be customized. This enables users to change their own charts. Resistance lines, sector comparisons, indicators, etc., can be altered and saved within the software. Rather than updating it every time on websites.
Trading softwares provides you with the accessibility to watch and manage your trades from anywhere; this enhances your efficiency.
The first stage of picking stocks is the fundamental analysis which examines key financial information of a company. Doing this process manually takes a lot of time. Whereas, custom software automates the fundamental analysis as it quickly filters through the key financial data of thousands of companies. This makes it very easy to match the companies with your criteria.
After fundamental analysis, the next step is the technical analysis where the main focus is to analyze patterns of price movements, trading signals, and security’s strength & weakness. Trading softwares have technical indicators which use mathematical calculations to analyze historical data and predict price movement.
Stock trading software allows simulation trading, automated trading, or both within its program.
• Simulation trading is also known as paper trading enables the trader to practice within the market without real money.
• Automated trading is faster and more consistent than human trading. This type of trading sometimes referred to as mechanical trading systems, transaction trading, algorithmic trading, or system trading. Here a trader place specific rules for trade entries and this tool automatically buys and sells securities based on predetermined criteria.
Stock trading software helps the stock market traders and investors to streamline the old process and make quicker stock market decisions. Be it flexible charts or automated trading; software technology in the stock market is helping us bring it to the future.