If you’re considering any kind of stock trading — including penny stock trading — you should also consider stock market software. Trading penny stocks involves due diligence in your research and the tools to make that research as accurate and efficient as possible. Stock software helps you eliminate the wheel-spinning monotony of research and allows you to hone in on the real profit picks.
You will use various forms of stock charting software to find trades, resolve the primary data necessary to understand those trades, then execute each trade. Some applications will even help you maintain your brokerage accounts. In most cases, you will find the work requires the automation of such quality technical analysis software.
One of the first decisions you need to make when considering stock market software involves whether you want an all-in-one solution or you want to pick and choose different more specialized applications to fulfill specific tasks.
But regardless of which way you proceed with stock market software, you need to investigate and invest in some kind of stock market software solution. With changing day trading laws and the propagation of robust Internet access, these stock trading applications have become vital to the independent penny stock trader. Your competition uses day trading software to thrive, so you better use it as well or you’ll just fall behind.
So which software should you choose? You’ll have to select among three different categories. The first I’ll describe is the most delicate and difficult to select.
Stock Trading Software Vs. Get Rich Quick Schemes
As I’ve described in several places across this site, penny stock trading is ripe with fraud. One area penny stock fraud presents itself is in heavily promoted “stock picking” software. Be wary of applications with long superlative-laden sales pages.
I don’t mean to steer you away from using software to help you anticipate market behavior; just be careful which ones you buy and don’t succumb to some of the aggressive sales tactics out there meant to pray on people desperate to “get rich quick” or just make some extra money easily.
Legitimate penny stock market trading software, however, will help you eliminate some of the tedium of researching and calculating a specific stock’s behavior over time. Basically, these applications track both the specific stock and the industry in which the company exists. It uses algorithms to spot patterns known to anticipate positive or negative activity for both the stock and the industry and illuminates those patterns for you.
Like I said, sometimes these types of applications exist just to make money off of you. But that doesn’t mean you should investigate such software for stock trading. In all likelihood, your competitors utilize such stock market anticipating software, so you will only give them an advantage if you avoid it completely._____________________________________
But do not just blindly act on any one application’s suggestions. It should just provide the launching point for your research. No over-hyped application can replace responsible due diligence.
All-In-One Stock Market Software
The next basic family of stock market software are the All-In-One packages. These tend to be do-it-all applications that connect you to your brokerage account, help you manage your account activity, chart your stocks, execute your trades and sometimes even provide the kind of stock behavior anticipating attributes I describes in the previous section.
These packages have become much better in recent years and if want to keep things as simple as possible, it might be the way to go. They tend to be designed with accessibility in mind, so if you’re new stock trading, they can help you get started. However, because they’re produced for a wider audience, they often lack the more sophisticated capabilities provided by day trading software designed for specific purposes. I guess it’s a little of the old “jack of all trades but master none” mentality.
This doesn’t have to be a bad thing. If you do your due diligence on your own and with the human supervision and assistance of a broker, you may not necessarily want to get all involved in learning specialized stock trading applications.
Top penny stock brokers are starting to provide online stock trading software as well. This is basically web-based trading software which provides similar functionality to tradition desktop stock market software. If you’re looking for free stock trading software, start with your broker as this application package will often come with your brokerage account.
Specialized Stock Trading Applications or Component Software
The last category of stock market trading applications I’ll describe is what people often refer to as component stock market software. These stock trading applications tend to be much more sophisticated… and more powerful. However, they feature a steeper learning curve as they’re generally designed for a narrow demographic of experienced professional stock traders.
This stock market software isolates very specific parts of the stock research and trading process then provides robust, advanced capability in that area. They frequently even provide their own API (application programming interface) for advanced users to custom design their own stock pattern indicators into the application.
If you’ve reached this site because you’re just learning about penny stocks and stock trading, you really shouldn’t concern yourself with these more advanced applications. You can kind of get lost in learning and customizing these kinds of stock market software when you need to be studying the behavior of the market and the background of the specific companies you intend to trade. And definitely steer clear of the promise of automated stock trading software. Focus on learning the basics of how to trade penny stocks effectively before you get bogged down with too much information.
I hope this helps. In the future I do plan on making some specific recommendations, but right now — to be honest — I don’t feel qualified enough to make such recommendations about such an integral part of your penny stock trading experience. I know what I like and I feel comfortable what I use, but there is lot out there I’ve never tested or tried.
Above all else, don’t fall into the trap set by sly internet salesmen. No single piece of stock market or day trading software will help you make millions overnight. Ultimately, it is about responsible research and hard work. Thank you for visiting Penny stock Trading and I hope you’ll browse my other articles while you’re here._____________________________________