Choosing your Day Trading Software

When thinking about day trading software, what is the first thought that comes to you?

Find useful information and tips given below that can help you chart, analyze and trade better.

  • Software for Trading
  • Day Trading Platform

trading forex

Software that is used by the traders to send their orders of trading to the brokers is known as the trading platform. Trading software should be used definitely by the day traders to send in their orders as it can help them to speed up the tasks which are very crucial for day trading.

The significant factors affecting the choice of day trading platform are as follows:

1. Choosing the broker

You must notice that the broker you choose often limits the availability of trading platforms to you prior to selecting a particular platform for trading. Almost all the brokers have their own trading platforms which are available as desktop software, mobile apps, and web applications.

The brokers insist you to utilize their in-built platforms for trading which means the trading platform that you must use is determined directly by the type of broker that you choose.
Thus prior to choosing your broker, it is always best to look for the trading platform and its features offered by the broker.

2. Find a trading platform that is reliable:

A very important role in the trading belongs to the trading platform used as trading orders are sent for market execution in timely manners by the trading platform. Reliability during transmit of trading orders and also stability in the connection to the servers of trading are expected from the trading platform. Hence these two factors should be considered when choosing a trading platform.

The in-house trading platform of a trader/broker is often more reliable when compared to the platforms belonging to third parties as they enable a smooth and simple back-end process. You can go ahead with an in-house trading platform when it has all the important features for trading.

Also it is not reliable to trade using mobile applications due to the coverage of the network not being consistent in all the areas.

3. Go for simple one-click trading strategy

You are required to confirm your orders before submitting them so that they can be protected from accidental submission. Hence you need to click two times-one to submit and next to confirm your order. But one-click trading is the best for most of the day trading strategies as they need response immediately.

4. Order Cancel Order or Bracket Orders

There are two orders in the bracket orders that are close to the current price in the market and one order gets automatically cancelled after the execution of the other order. The bracket orders are also called as OCO (order-cancel-order).

For trading ranges also, the bracket orders are beneficial. You can choose to make use of bracket orders based on the trading strategy and style. You must also ensure to check whether your trading platform has the capability to employ bracket orders.

5. Day trading simulators for beginners

To become familiar to the trading platform and also to test new strategies in trading, paper trading is very effective.
Some traders do not require a trade simulator but it is very essential for those who are new to trading which will make learning easier.

Charting platform as Day trading software

For the technical analysis of trading, the market data are plotted in charts using a charting platform. The technical analysis is used partially or entirely by many traders and thus another indispensable day trading software is the charting platform.
 Traders should have an existing strategy for day trading in order to select the best charting platform.

1. Drawing trends with charting platform

The trend lines of the day trading can be drawn using any charting platform so that the resistant and support zones can be marked for reference. Make sure that all the drawing tools that you need are offered by your charting platform software.

2. Indicators for trading

Make a list of all the trading indicators that you require by reviewing your strategy in trading. Also take a look at your charting software to see if it supports all the tools for trading.
You can also have custom indicators by coding or importing them. Check whether this can be done in your charting platform.

3. Chart Trading

The charting and trading abilities are often combined by many in-house as well as third party trading platforms.
Day traders are benefitted more by chart trading as it provides them the ability to trade with ease.
Day Trading Software for a good trade analysis and review.

The role of the day trading software is often overlooked upon the analysis and recording of trades.

For a good post-trade analysis and development of trading plan, it is important to maintain good trading records. Though it is a difficult task, this can be made easy using a good day trading software.

1. Records of Trade

A list of information should be recorded for every trade such as:

  • Entry time

  • Instrument

  • Exit time

  • Quantity

  • Entry price

  • Exit price

  • Maximum adverse excursion

  • Profit/loss

  • Maximum favorable excursion

The trading performance can be reviewed using these above records and also improved significantly. The records of your trading can tell you when the trading strategies work at which time and also you can determine that the maximum adverse excursion is well within the stop-loss distance in your winning trades.

The trade records must be analyzed thoroughly in order to derive at the important conclusions about the trade. The analysis and recording of the trade records can be done with the help of spreadsheet software.

Microsoft Excel is the best software suited for recording the trading activities as it has advanced capabilities of data analytics. In MS Excel sorting, filtering, calculating statistical metrics, applying pivot tables, etc. can be done using the records of trade. Also many plug-ins that are related to trading are available in Excel.

Open Office and Google Drive are other alternatives that you can use for recording your trade analysis. However, you must note that the functions of Google Drive are very limited and also lacks in Open Office support when compared to the Microsoft Excel. They might be enough to provide a basic trade analysis though.

2. CHART NOTES

For day traders who are serious in their trading, chart notes or snapshots that show trading setups can be valuable.
Microsoft OneNote is one best choice of software that is helpful for chart notes in studying trades. You can easily type notes, write and draw on the screen captures using this software.
Your chart notes on trades can also be synced across other devices which is useful for on the go chart reviews. OneNote offers you a lot of other possibilities as well.
Another effective method of recording your setup charts in trading is to screen cast or video record your computer screen. The whole process of trading can be captured well using this technique. This also allows you to verbally narrate your ongoing trade analysis which is excellent in terms of reviews post-trade. But one disadvantage of verbal notes is that they are not good for easier organizing and searching of the trade records unlike the Microsoft OneNote.
For screen casting method, you can use the tool called Camtasia Studio.

Make a wise decision about your Day Trading Software

You cannot achieve the best performance in trading by just spending more. Hence it is wise to first understand the style of your trading and then look for the trading tools that you would require for a better and effective trading.

here is the best software: