s a follow on to the article, Essential Tools for Day Trading, I wanted to dive deeper into the topic on which tools I have chosen for my day trading endeavor.
Many new traders dive headfirst into the world of day trading without fully understanding the importance of having the right tools at their disposal. While seasoned traders can navigate the markets with finesse, beginners often struggle to keep up without the aid of proper software and resources. In this article, we'll explore the essential tools every day trader should have in their arsenal to maximize their chances of success.
I had a practical approach to learning:
- Purchased a course from NYIF on day trading, https://www.nyif.com/stock-trading-professional-certificate-online.html
- Watched Sean Dekmar trade real-time, https://www.tradecaster.com
- Watched YouTube videos on core topics I wanted to learn, mainly Raynor Teo, https://www.youtube.com/channel/UCFSn-h8wTnhpKJMteN76Abg
- Paper traded via Schwab (both IRA and Margin) (there is a difference in functionality such as Shorting stock has to be done via Margin account)
- Journaled about my learnings, via Evernote.com and TradeZella.com
Day Trading Software
There are a few different items you will need for day trading including:
- Online Broker
- Scanning Software
- Charting Software
- Trading Journal
- Community
Below we will dig into our favorite day trading software, why we use them and why we think they are crucial for traders to have!
Online Broker: Lightspeed or Schwab
Selecting the right online broker is crucial for day traders, as it directly impacts the speed and efficiency of trade executions. For active traders, brokers offering features like hotkeys, direct access routing, and fast executions are essential. Lightspeed and Schwab stand out as top choices, providing the necessary tools and services tailored to the needs of day traders.
Scanning Software: TrendSpider
Efficient scanning software is indispensable for identifying potential trading opportunities in real-time. While there are various options available, TrendSpider stands out for its user-friendly interface and extensive preset scanning criteria.
There are plenty of day traders who have created their own scanners they will sell you online. However, I prefer the traditional route of using tools native to a charting solution like Thinkorswim, or TrendSpider.
In addition, has one of the best UI/UX charting platforms on the market.
Many of the other solutions on the market have the ability to code your own. For example, someone using TradingView can use pine script to code their own custom scanners. When taking a course on Thinkorswim, we learned how to code our own watchlists for stock that met our EMA criteria.
Whether you're a novice or an experienced trader, TrendSpider simplifies the process of market analysis and helps uncover hidden opportunities with ease.
Charting Software: TradingView with TrendSpider a Close Second
Charting software forms the backbone of technical analysis for day traders. While platforms like Thinkorswim offer robust features, TradingView and TrendSpider offer sleek UI/UX designs coupled with real-time charting capabilities.
Initially, when learning technical analysis, charting, I used the Thinkorswim platform. While it wasn’t hard to learn with the resources on the web today and YouTube, I found the UI to be less appealing than some of the alternatives. As a matter of opinion, all brokerage firms who have a trading platform have software that falls into this less aesthetically appealing but feature rich bucket.
TradingView, backed by substantial investment, provides an extensive range of tools, while TrendSpider, with its ambitious team, offers innovative features and a seamless user experience.
Trading Journal: Tradezella
If you are eager to understand and quantify your trades, you will want to select from the large pool of trading journal software programs. UI/UX is a large consideration in my selection criteria along with the ability to easily report and place trades is cohorts for easier dissection. When I started, I created a separate playbook for paper trades so I could filter out paper trades vs love trades.
Community: Tradecaster
Trading can be a solitary endeavor, making community support invaluable for many traders. Tradecaster, led by CEO Sean Dekmar, stands out as a reputable community platform offering insightful market analysis, pre-market summaries, and live trading sessions. Sean's expertise and engaging personality make Tradecaster not only educational but also entertaining, fostering a sense of camaraderie among traders.
Many times I find myself joining Tradecaster for the banter even on days I don't plan on trading.
Final Thoughts
In the fast-paced world of day trading, having the right tools can make all the difference between success and failure. From selecting the right online broker to leveraging advanced scanning and charting software, each tool plays a crucial role in enhancing your trading strategy. Additionally, being part of a supportive community like Tradecaster can provide valuable insights and encouragement along your trading journey. By equipping yourself with the best tools available, you can navigate the markets with confidence and maximize your potential for success in day trading.
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