Trading Tips 22-12-2022 23:07 57 Views

4 Powerful Trading Tools. They Can Be Your Game Changer!

Day trading refers to the process of buying and shorting financial assets with the goal of generating profits. It differs from investing because day traders typically buy and hold assets for a short time.

On the other side, it is not uncommon for investors like Warren Buffett to buy and maintain positions for more than 20 years.

Despite some commonalities, two approaches that are so different also need different tools to perform at their best. In this article, we will look at some of the most powerful day trading tools that will help give you an edge in the market.

Why traders need trading tools

Trading is a high-frequency and intensive industry where seconds matter. As such, traders are always working to find strategies to help them develop an edge against other traders.

This explains why many large investors are ready to pay $2,000 per month for the Bloomberg Terminal and $22,000 per year for the Refinitiv Eikon.

Trading tools can help traders make decisions in the market. For example, a trading tool like TradingView gives retail traders advanced charting tools that they can use to analyze the market in an effective manner.

Similarly, trading tools like the Bloomberg Terminal provides all advanced data that traders need to analyze all financial assets.

Online brokers provide tool that make it possible for traders to develop an edge. They do this because of how competitive the trading industry is.

If they don’t provide advanced charting tools, the outcome will be that many people will move to competitors. So, here are the best trading tools that will help you develop an edge.

Charting Tools

PPro8

PPro8 is the main charting and trade execution platform for Day Trade the World (DTTW). It is a powerful trading terminal that has loads of features that many mainstream companies don’t have.

First, unlike a product like Robinhood, PPro8 has direct market access (DMA) in most assets. DMA gives traders access to real data in the market. It allows them to directly select the market-maker that they want to use.

In contrast, Robinhood and other brokers select the market-maker for you. By selecting the market-maker yourself, it is often possible for you to get the best price. Also, at times, the company can reimburse you for routing trades through its platform,

In addition, PPro8 provides layer-2 data by default. Layer-2 data is often not available to most traders. It provides more data on how traders are placing orders on various assets.

Most importantly, PPro8 also provides time and sales, which shows the time, price, and volume flows of an asset. It also provides order flow distribution.

Taken together, all this information can lead to significant profits to a day trader. Further, the tool provides advanced charting tools, with all the most important technical indicators.

You can look at the PPRo8 at work in TraderTV, one of the fastest-growing YouTube channels on trading.

TradingView

TradingView is a major tool that traders from around the world use to chart. It is a simple but extremely powerful tool maks it easy for traders to analyze virtually all assets in the world, including stocks, cryptocurrencies, forex, and commodities.

TradingView also has other features that will help you in day trading. For example, it has a tool that makes it possible for a person to create and test various trading signals.

Further, it has tools that show breaking news, trending assets, top movers, and in-depth data. In addition, it has hundreds of traditional indicators and those created by community members.

TradingView also has other features, including a calendar, alerts, chats, ideas stream, and strategy tester among others.

News scraping tools

SwaggyStocks

Wall Street Bets (WSB) became a major sensation during the Covid-19 pandemic. It is a Reddit channel where people discuss stocks and other assets. In 2021, it was credited for making some names like GameStop, ContextLogic, and AMC sensational names.

As such, having a good access to data on WSB can help you become a better trader. It can help you have an edge in the financial market. Therefore, SwaggyStocks is one of the best tools to use to find these trading ideas.

It is a tool that looks at the social sentiment of stocks, cryptocurrencies, and NFTs. By looking at the data, you will be at a good position to predict the next top movers in the stock and crypto market.

It will also save your time by simplifying the analysis process. Another alternative to SwaggyStocks is TweetDeck, which regularly updates the Twitter feed.

Related » The Importance of Finding Out Your Trading Ideas Through Social Media

Trade ideas

Traders have a constant need for market momentum. Trade Idea is a powerful tool that provides traders with a scanner feature that helps them find hidden market opportunities.

It provides entry and exit signals, market breadth information, news, real-time alerts, performance tracking, an live trading among others.

However, unlike the other tools mentioned here, it is a premium tool that starts at $84 per month with advanced features of $167. As such, it will not be ideal for anyone with a small trading account.

Summary

There are other tools that will help you be a better trader. Some of the most popular are Investing.com and Barchart.

Barchart provides most information that you need in the market. We particularly like it for the unusual options data that are common in the market. You can use this data to predict the next major thing in the market. Investing, on the other hand, is ideal for the vast calendars that it provides.

External useful resources

What are your favorite tools as a stock trader? - Reddit
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