How to Use Day Trading Software
Powerful trading software is what gives day traders the speed and capability to execute nearly instantaneous trades in response to breaking news.
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Things You'll Need
- User-friendly day trading software
- Fast Internet connection
- Plan for what you want out of a day trading platform
Instructions
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Browse the many day trading software styles out there to compare and contrast features, such as news feeds and instant trade execution. Some software will even give you suggested prices for buying a particular stock, as well as an "optimal" exit price. If you want this kind of hands-on guidance, great--but many day traders prefer to trade according to their own theories and methods.
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Buy software that helps you zero in on your chosen stock profile. Do you have strict criteria for the stocks you buy but want to be able to trade them quickly without time-consuming research? If so, look for day trader software that includes stock "screeners," in which you input your must-have criteria and have the stocks that meet this criteria delivered to your screen.
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Use every feature on the software you choose at least once. This will give you a hands-on idea of how it can work for you. If you are paying for powerful, expensive software with the idea of making good money, then it makes sense to know exactly what your software can do.
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Program your conditional orders with your software, and then you won't be chained to your computer during the trading day. If the software you choose allows you to use stop-order placement, you can get out of the house feeling confident that you won't end up with a large volume of overinflated securities or miss a good stock at a great price.
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Listen to podcasts and streaming video news clips about market predictions. Bloomberg is an online financial data giant, and the company offers both types of educational tools (see Resources below).
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Tips & Warnings
It isn't superficial to choose the software that you find most visually appealing. Some people respond more quickly to graphics, some to words and others to charts and numbers. Choose the program that looks and feels easy and comfortable to use.
Despite getting more news faster, day trading is still a very risky pursuit. Most day traders lose money, despite everything that technology has to offer.
