Stock Market Trading Strategies and Software - Which Is Best

Financial Plan & Invest

You should use stock market trading strategies and software for success in stock market trading. Some stock market trading strategies are better than others, as are some stock market trading software. Knowing which is best will help you make an informed decision. One of the most effective stock market trading strategies is value investing. This refers to a long-term stock market trading strategy whereby you buy a stock that you believe is greatly undervalued based on factors that are unrelated to the worth of the company such as short term trends resulting from a particular event. You should familiarize yourself with general accounting and financial documentation as it helps you understand such things as balance sheets and financial disclosure forms.

When considering stock market trading strategies and software, another of the effective strategies is swing trading. This short-term strategy involves the identification and capitalizing on daily or weekly pricing trends. As an example, if the majority of traders are acting in a bearish manner, you may buy the stocks and hold them until prices rise.

Yet another effective stock market strategy is seasonal tendencies. This strategy involves the identification of stock movement in particular sectors due to seasonal variations which might not be related to the stock?s actual worth. An example of this is the rise of a defense stock during the Olympics when investors are feeling nationalistic.

One of the most conservative stock market trading strategies is investing in blue chip companies. This is a long-term trading strategy. Investing in large, blue-chip companies is advantageous in that it is easy to predict the direction of the prices and these companies give out dividends. To use this strategy, buy stocks in companies in different sectors as this spreads your risk.

More and more stock market traders are investing in emerging markets. This strategy involves starting early in emerging markets and waiting for other investors to move in. The emerging market could be a geographic region or a particular sector.

It is important that you pick the right stock market trading software as this helps reduce errors in your trade, it allows you to trade day or night, all year round, it offers you anonymity, and it saves you money since there is no traveling around. There are several software programs available in the market.

One of the best stock market trading software programs is AmiBroker. The software has very powerful features that allow you to do such things as developing indicators and back testing of your trading theories. The software might have a long learning curve, but you will be getting value for money given that it costs just $199.

You could go for MarketClub. The software program uses a mechanical stock trend trading system to generate buy-and-sell signals. You will find these buy-and-sell signals on the charts in trade triangles. The software gives you access to fifteen of the most popular technical indicators, examples being RSI, MACD, and stochastics. Other features that you will find here are trade school and smart scan. The software will cost about $449 a year.

Yet another good option is TradeStation. This software program allows you to automate your trading and test your systems at the same time. The tool allows you to create indicators and to back test market ideas. With a trading account, you will pay $99 a month for the software, and $299 without one.

Another of the top options is Best Penny Alerts. This is an analytical stock market live software program that works perfectly for penny stocks. You will know past market behavior from the software and you will be able to identify the factors that affect performance short-term. When picking between stock market trading strategies and software programs, go with what has been tried and tested.