An effective and well-tested trading system is perhaps your most important tool as a trader. It’s crucial to keep in mind though that even the most carefully plotted plan can still fail without supporting trading charting software.
It isn’t a secret though that lots of traders find it hard to make choices because there are too many. The problem becomes more complicated when you realize that all software makers say they’re the best. How can you pick from all these top products?
As you might have already guessed, your first point of assessment must be a product’s reputation in its niche or market. Determine what people are saying about it. The internet has made it very easy for anyone to post positive or negative feedback online so you’re bound to find a great deal of these on various sites including social sites.
Usually though, sterling reviews shouldn’t be the only basis for your choice. It’s always possible for any product owner to generate artificial positive feedback. Hence, you’d also have to look into other factors such as product longevity. Investment or stock charting software that’s been around for years says a lot about its performance. Common sense dictates that a product that has been able to stand the test of time is reliable simply because buyers or subscribers will not put up with an unreliable one for long.
Flexibility is also a hallmark of a good charting tool. For more experienced traders this means, having room to custom code their preferences beyond what a package provides as default options. Even if you’re just a beginner, you should steer clear of products that offer to do everything for you. Common sense should tell you that no auto tool can replace human judgment and capacity for analysis. Hence, you’re most likely headed into a bad situation if you leave everything in the hands of a tool.
Naturally though, it is vital that your tool be both flexible and automated. Although it’s ideal to call the shots, you’d also benefit from quick and instant results. For instance, you would want to be able to easily determine which stock options match certain predefined criteria. Excellent software with scanning abilities can allow that.
Another important trait to look for in a package is its ability to use different data plans. Some software makers offer cheap packages that quickly lure beginner traders. Later, they sell expensive partner data plans that are exclusive to their tool, thereby forcing traders to pay up. The best option is to buy a charting package and then use a separate data plan of your choice that you can use with it.
You can’t always make a decision even after careful and methodical research. If you find yourself in this situation, your next best option is to first list down the software options which you think are the absolute cream of the crop. Next, pick those that provide free trials. This way you can test tools at no cost.
There’s no beating trading when it comes to providing the opportunity for financial freedom. However, it’s equally likely to get you into a financial rut if you don’t have good tools so make sure you choose the best charting software.