Buying Stocks 101

Not so long ago, the average investor used brokerage agents to facilitate their investments.  They took their advice and traded their strategies.  A lot could be divined about a person by what brokerage house handled their portfolio.  But that has all changed.  Investors have much less faith in the advice of stock brokers, and recognize that the only person who’s going to look out for their investment goals is themselves.  But that requires gaining significant knowledge about the market, and keeping up with changes in the market as they happen.  They must study trends, analyze charts, and implement strategies often on lunch breaks and between meetings.  That may sound daunting, but thankfully a horde of software has sprung up to assist the average investor in navigated that sea of information.  To narrow down the field a bit, we have put together a guide to some of the best stock trading software on the market, organized by where they might fit in your toolkit.

Online Brokerages

The obvious first software tool you need in your arsenal is a mechanism to make trades.  Fortunately, the internet has democratized trading to such as degree that the vast majority of trades are initiated online through a variety of high-quality brokerage houses, some of which have no brick-and-mortor presence.  The ones that opporate solely online have much lower overhead, and therefore pass along the savings to your in the form of lower transaction fees.

The top 3 I recommend would be:

• ScotTrade
• TD Ameritrade
• eTrade

Trading Simulations

Any investor who has spent any time at the school of hard knocks knows that a strong trading simulation platform is worth its weight in gold.  Fortunately, most don’t require any cash, much less gold (though some simulate trading it).  These simulators give you a certain amount of “virtual” cash with which to place simulated trades using slightly delayed stock quotes.  This allows you to test new strategies without losing real money.  Simulations aren’t just for the novice either; seasoned investors know the power of executing one trading strategy while testing how another might play out.

Some trading simulators to check out are:

• Scottrade Elite
• TD Ameritrade Strategy Desk
• Yahoo! Finance Portfolios
• Gannalyst

Charting and Trends

You will not get far with investing if you don’t begin to look at charts and trends.  This is the math and science of investing.  They allow you to see how stocks do over time, where their highs and lows are, and where they might be headed.  Any gooding charting software will let you analyse the data from multiple angles, and compare it to other stocks or market segments.  While there are literally hundreds of charting tools for buying stocks and bonds, here are a few that offer excellent data at a very low price (that price being free).

• StockCharts.com
• QuoteTracker.com
• The Market Toolbox

Specialized and Targeted

It is likely that when you begin to get a grasp on the world of investing, you will find there are some investment vehicles that best suit your personality or that you find are more aligned with your investing goals.  Once you’ve decided to focus on a specific investment type, you may find that many of the software packages on this page are too generic or include too much information for other markets that you aren’t interested in.  In that case, you might opt for a more specialized or target investment tool that takes into account the unique aspect of your chosen market.  Here are some to look into.

• Penny Stock Prophet
• Forex AutoPilot

Most Popular

The following software packages represent some of best stock trading software available at an affordable price.  They are popular because they work.  Buying stocks is a complicated and time-consuming endeavor, but these programs allow for manipulation of complex portfolios, while providing data and automation to give you the best chance at making money.

Some full-featured stock trading software packages are:

• TradeStation
• WizeTrade
• Wave59
• AmiBroker

Final Thoughts

My recommendation would be to select one of the programs from each category that you feel is the best stock trading software for your goals.  Start with the free ones if at all possible.  You are going to need tools if you are going to make money in a market dominated by professionals and corporations with deep pockets so don’t underestimate the value software plays in your investment strategy.  But I must also issue a word of caution: software cannot make up for not understanding your market.  If you haven’t studied the fundamentals of your chosen investment vehicle and its corresponding market, software tools will only help you lose money quicker.  So study up, chose wisely, and as always, good luck on your journey to wealth and financial security.