Stock market software is a valuable tool when you want to get involved in the financial world and become a trader. The study of the markets, the analysis of the price of the stock market, the choice of actions (what is called trading) is more a matter of a strategy than of chance. Hence the importance of choosing the right software! Before targeting the qualities of good software, let’s talk about the different types of software that exist.
There are 5 different types of software:
Basic tool, often free, used only to follow and import the course of a share. From real-time quotation information, you will be able to draw a straight line of the action trend. This is only an indication, not a prediction!
It is a technical analysis tool. You can find moving averages, RSI (relative strength index) or MACD (convergence and divergence of moving averages). It is a first-level stock market software that allows you to trade an asset.
To start trading, this software is ideal because it allows you to follow the course of your shares and your investments. Often a virtual simulation mode is integrated into this type of software. Thus you will be able to discover other references, such as that of the PRU (unit cost price).
With this type of software you will essentially carry out technical analyses. You may be offered to create your own analysis indicators, set up alerts and possibly backtest strategies.
Stock exchange software to be wary of. Especially if you are new to financial markets. Trading requires time, analysis and training. Now that you know what exists in terms of tool, how to recognize a good stock market software? What qualities do you need to find?
If you are a beginner, there is no need to go into portfolio management. You will need an online tool that allows you to understand how a financial market works, therefore offering real-time price monitoring, simple in terms of ergonomics and free. In most cases you will be asked to create an account. Once you have acquired a minimum of knowledge, you can start analyzing the indicators.
Here again, relying on the most well-known indices remains sufficient. You will still stay on a range of free and simple stock market software. No need at this level to invest in paid tools. The question of the quality of the software’s functionalities will arise once you have no more secrets for trading and you are comfortable with the jargon and acronyms. This is usually when the question of paid software will arise. It will become interesting for you to be able to do, beyond technical analysis, stock forecasts, backtest your strategies, scan market prices and automatically detect trends.
The difference between stock market software at this level will be in the customization of settings and alerts. The more it offers you the opportunity to refine your strategies, the more you can ensure the profitability of your choices and decisions.