 is one of the most exciting yet complex choices where you can earn profit.){kind=link}
Share trading (or stock trading) is one of the most exciting yet complex choices where you can earn profit. However, before you can make a profit, there are certain tools you need. These tools enable you to execute trades efficiently, analyse data, and follow trends.
In addition, share trading best fits active traders as the strategies used are similar. But before you get started, just like any other type of trading, you need to have enough knowledge about the market first. From there, you can practise trading and improve your skills.
But going back to the tools you need for successful share trading, don’t hesitate to check the list below!
1. Trading platform
The most important thing to get started with share trading, or trading in general, is having a reliable trading platform. Nowadays, there are various trading platforms that beginners and professional traders use.
However, not because a trading platform works well for others doesn’t mean they’ll work for you too. So when choosing a trading platform, you should look for features that can help you trade smoothly. Some of these features are the availability of different devices, speed, user-friendly interface, and reliability.
Usually, trading platforms come with your chosen broker. However, you shouldn’t rely on the credibility of the broker. Even if their reviews are great, you should still figure out if the trading platform they use fits the way you trade.
2. Market data and news providers
If you already know how to trade shares, you can improve your trading decisions if you’re updated on the latest news about the market. But how do you do that? Nowadays, you can find various news and market data providers.
However, not all of them are reliable and give accurate information. So before subscribing to a market news provider, you should make sure that they’re giving market depth, historical price data, real-time quotes, and other crucial information.
In some cases, trading platforms already provide the latest news about the market. However, finding another provider that can give accurate updates is even better.
3. Charting and technical analysis tools
Some share trading tools are non-negotiable. If you don’t have them, it’s almost impossible to trade shares. These include charts and technical analysis tools that help traders to identify potential entry and exit points, patterns, and trends.
Some charts used in share trading are bar, candlestick, and line. Meanwhile, in terms of technical indicators, the most common tools used are RSI, MACD, and Bollinger Bands. These tools provide additional insights into price movements.
As mentioned, luckily, advanced training platforms now come with technical analysis tools the traders need for executing trades.
4. Stock screeners
Are you looking for a share trading tool that can help you filter down shares based on different criteria? You can try the stock screener. A stock screener, which is usually free, allows traders to sort available stocks with their preferred criteria.
The criteria may include fundamental factors such as dividend yield, market capitalisation, and volume and patterns of prices. In addition, stock screeners help traders identify potential trading opportunities because, with just a few clicks, they can find what they’re looking for.
So before you start trading, you should use the stock screener first. That way you already have an idea of what to trade, instead of looking for trades on the spot.
5. Risk management tools
Tools such as take-profit and stop-loss orders are effective in risk management. As you know, share trading, among others, comes with risks, so it’s best to use helpful tools to prevent losses.
The stop-loss order allows traders to input a specific price where the stocks should sell. For instance, when you set a stop-loss order at $15, the share will be sold once a market price reaches the price that’s closest to $15.
On the other hand, a take-profit order is a risk management tool that automatically closes a position once it reaches a specific profit target.
Although it’s not possible to avoid taking risks in share trading, the tools mentioned can help minimise the losses.
6. Trading journal
Whether you’re a beginner or a professional trader, keeping a trading journal is still helpful to improve your strategies. Furthermore, it allows you to analyse the market movement, review the strategies (whether they work or not), and identify patterns and specific occurrences.
But of course, if you’re planning to have one, you should be able to update it as often as possible. It’s best if you can sign into an online platform that offers various treading journal formats. That way, you can have access to it wherever you are.
In addition, aside from tracking your trades, it’s also helpful to look back at how much you’ve improved from the past strategies.
Final thoughts
The right tools and enough knowledge can help you get started with share trading. From a reliable trading platform to a detailed trading journal, you can easily help yourself to improve. However, when looking for tools you can use, you should take the time to pick the best ones that can help you execute trades the way you want to.
Now that you know the various tools that can help you how to trade shares, this can be the start of your success. Don’t forget to share your thoughts about these trading tools by leaving a comment below!