Day Trading Tools – Introduction
On a daily basis, traders exchange more than $5 trillion in the currencies market alone and they use day trading tools. In equities and commodities, hundreds of billions worth of deals are exchanged on a daily basis. This makes the financial market the most lucrative industries worldwide. Millions of people trade financial products electronically every day.
The scope of this industry makes it one of the most lucrative industries for sell-side analysts, software developers and other middle-men. Research companies such as Evercore charge thousands of dollars for their research papers. Software firms such as Bloomberg charge $20,000 per user per month to access information. Brokerage firms like Charles Schwab’s charge clients huge amount of money in terms of commissions to transact.
In the recent past, industries have been disrupted. For instance, Tesla motors which offers quality electric vehicles has disrupted the automotive industry while Uber has disrupted the auto industry. The investing and trading industry has also been disrupted. The following free day trading tools will help you make better financial decisions and become a better trader.
#1 – MetaTrader
MetaTrader, also known as MT4 is the leading trading platforms in the world. It is offered by most online brokers. The software which can be downloaded for free allows traders to learn to trade using a practice account. It also allows traders to trade a real account using real money which is first deposited through the broker. New traders can use the Metatrader to learn how to trade using real-time data. They can also learn how to use Expert Advisors and also to create their personal trading algorithms. Other tools offered by the MetaTrader include hundreds of technical indicators, a news feed, and various charting tools. DTTW also provides a system like that.
#2 – Financial Social Media
To become successful, it’s very important for traders to have a reliable source of news. In the past, TV and newspapers were the best tools to use. Today, most news break first in social media before hitting the TV. Twitter is the most commonly used tool for social media. Twitter has ‘broken’ so many market-moving news. StockTwits is a financial social media where traders share their ideas on specific currencies, companies, and shares.
#3 – Financial News Websites
Financial news websites play an important role in providing breaking news and analysis on various instruments. Websites such as investing.com provide a platform where individual investors and other opinion makers share their opinions. Experts such as Kathy Lien who has written a number of top-selling financial books is a regular contributor. In addition, the website provides a platform where traders can produce charts and compare prices on different items at once. The platform also conducts minute to minute technical analysis which helps traders make prudent trading decisions. Other websites that you can look at include: Bloomberg.com, fool.com, and SeekingAlpha.com.
#4 – Charting Tools
To make better trading decisions, traders need excellent tools to produce charts. These charts help them know when to enter and when to exit a trade. Some traders find common trading tools and platforms such as Metatrader difficult to use. There are other free tools that can help them create better and easy-to-predict charts. Yahoo Finance offers a platform where one can apply technical indicators and compare different instruments. Money.net is a Bloomberg alternative that charges $150 a month. One can create a free account and use the day trading tool to produce charts and read from other investors. Other charting tools that you can use are Net Dania and Stock Charts.
#5 – The Economic and Earnings Calendar
This calendar is a very important day trading tool for any trader. Though the earnings calendar is partly useful during the earnings season, the economic calendar is useful every day. The calendars which can be found for free enable the trader to know when to expect certain data. Economic data from different parts of the world give investors an overview of economic progress.
Day Trading Tools – Useful Links
- Discover more about day trading tools on CNBC
- Read more about other free day trading tools on TheBalance