BSE
Sensex scaled above 28,000 for the first time ever on 5th November 2014 last
week, while the 50-share Nifty also hit a record high in morning trade. Whether
you are a expert or a novice trying your hand at the stock market, you can
never be enough prepared for how will the market move at any moment. However
what you can do is stay up to date on the shares you are dealing with. Here are
some tools that might come in handy to do so.
Screeners
A screener is a
tool that can be used to filter stocks based on the metrics you want, be it
sector, market cap, stock price and so on. It allows you to add your own ratios
and columns to an otherwise crowded and confusing graphs to keep an eye on
things that matter to you. And certain websites providing this tool also let
you save your customised screener for future use.
Charts
If
you are exploring the different techniques for investing in the Online Stock
Trading or if you already do, then you must have come around the
analysis strategies called Fundamental analysis and Technical analysis.
Technical analysis doesn’t focus on the value of the company, but on the price
movements in the market. Charts are used precisely for that.
A
chart is a graphical representation of a series of prices in a given time
period. It will allow you to plot and study the movements of the price of a
stock, so analyse its patterns of change/fluctuations.
Indicators
Indicators
are statistical tools that are used to measure the current market conditions as
well as to forecast financial trends. In simple terms, they are your helpers to
keep a close eye on your preferred stock.
While
there are several indicators available out there, two easy ones to start with
are price and volume. If you are looking to get into technical analysis of
stocks, over fundamental analysis (i.e when analysis is done on historical and
present data, with the goal of making financial forecasts) then you can
use indicators to predict changes in stock trends or price patterns.
Watchlist
A
watchlist is a dashboard created to maintain a customized list of
symbols/stocks on which the investor would like to invest or to analyze the
performance and make a decision by selecting it from the drop down box
available. It has the parameters such as entry date, today’s range, today’s
volume, charts etc.
Algorithmic Trading
As
the name suggests, algorithmic trading is a system that utilises pre-defined
algorithms for making transaction decisions in the financial markets.
Algorithmic trading takes out the emotions part out and makes decisions
objective.
These
pre-programmed trading instructions are designed to determine the optimal time
for a transaction to be made that will cause the least amount of impact on a
stock’s price. These automated systems allow high volumes of data to be
processed automatically and acted upon swiftly and efficiently.
Logo Ticker
As
shown in the image above, Logo Ticker tool shows share price, volume, change
and news for stocks you select. The desktop widgets usually provide a window
agnostic ticker, to keep you constantly updated no matter what you are doing on
your computer. However if you are adding a ticker on your mobile, you can
select the positioning depending upon which app you are using.
Online Stock Calculators
In order to take the right decision on which stock to invest in,
there are a number of different calculators available online. For instance a Profit-Loss calculator would help you understand the trade’s
profit and loss potential before you place it, to see how the results would
change based on changes in volatility and time. A probability calculator
determines probability of hitting trade targets and so on.
Investopedia is
an online encyclopedia for stock trading. From investment basics to the current
events in the stock market, you can find it all on this website. It even has a
simulator for playing virtually in the share market with virtual money, to
practice your skills.
StockTwits
StockTwits is
a mobile app that helps the users to share ideas with other traders and
investors in real time, view charts and videos, access to market news and
financial blogs all in one app. It’s like a social network for stock traders,
to get insights, updates, statements and analysis from thousands of other
users. It is available for both iOS and Android.
eToro
If StockTwits is Twitter for investors, then eToro is a Facebook for them. It is a
trading platform and community that offers easy access to trade and invest in
currencies, commodities & indices. If you are just starting with trading
then you can interact and ask questions with other traders who are more experienced
in this field. This too has both iOS and Android versions of its mobile app.
Stock Alerts
Stock Alerts Tools are offered by several websites including
NASDAQ itself, to get updates of the selected stocks directly to your mail
inbox. This will save you the trouble of opening the browser again and again to
monitor the stocks.There are also some websites like TradersCockpit in India, that allows users to get
these alerts directly on their mobile, choose the frequency and time period for
getting the alerts in a day.
Source from : http://www.iamwire.com/2014/11/handy-tools-investing-stock-market/104284
All the traders must see this post to get information about the various tools that can be helpful in trading.
ReplyDeleteStock tips