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Choose the Manual or Automated Stock Trading Software That Is Right for You

Once you’ve made a decision to invest in the stock market, your next investment should be to acquire some kind of manual or automated stock trading software. Determining what type of software you need is probably the biggest hurdle to overcome.

What Type of Trader Are You?

The first variable is the type of trading that you do. Day traders and long-term investors will require different types of stock trading software that are designed for their needs.

Three Major Types of Software

The next step is deciding what exactly you want your software to do for you.

  • Execution software is just that: software that allows you to execute trades using your computer and the Internet. Everybody will need some type of execution software, but again, the type of investor you are will dictate what types of software you should be looking for.
  • Charting software allows you to track trends over specified periods of time for whatever stock symbol(s) you input. You can look at fluctuations from one day to the next or over a twenty-year period.
  • Specialty trading software offers additional applications: anything from breaking news to new highs and lows. You generally do not need to start out with specialty software, but it may be something that you want to add in as you go.

Assess Your Budget

As with any computer-related purchase, the amount of money you can spend will be the major influence on what stock market trading software you select. Obviously, the more money you can invest in a software program, the more it will be able to do for you, but remember that it may also be more complicated to navigate due to increased options. No matter what your budget, a free demo or trial is always a good idea before you buy. This way, you can see if the system is easy for you to understand and use.

Read the Reviews

Going online to do some comparison shopping is the best way to pick out software. There are many sites where you can read user reviews of different stock trading programs. You will also be able to see which programs offer the free limited versions for you to test out.

Remember the Risk

Keep in mind that investing in the stock market is inherently risky; that is why it presents the opportunity for high returns. No software program can reduce your risk. Ultimately, investment decisions are up to a human being, so the best protection is being knowledgeable and staying informed.