| In common with nearly all specialist software | | | | 3. Online educational resources |
| applications, stock trading tools have exploded in | | | | Most stock brokers have their own customised |
| number and in their capabilities since the early 1990s. | | | | training available to their customers. It's unwise to |
| What exactly are these tools and which are the best | | | | rely too much on any such package but nonetheless |
| ones for you? | | | | it is often possible to learn a great deal from these |
| 1. Trading platforms and other stockbroker services | | | | resources. My own preference is for independent |
| These are arguably the tools that have evolved the | | | | coaching from an experienced and successful trader, |
| most quickly and to the greatest extent. Even the | | | | rather than a broker. You have available online video, |
| original, basic platforms that first appeared in the late | | | | DVD video as well as audio and the more basic |
| 1990s were revolutionary compared to the system | | | | ebooks, none of which was available to any degree |
| we had before - using the telephone to instruct your | | | | before about 2003. |
| broker. Now with the latest developments you can | | | | One most important and significant development is |
| enter, amend, or close a trade with just a few | | | | that of the "demo account". This is without doubt a |
| mouse clicks, and it's almost (though not quite, of | | | | major breakthrough and valuable asset of the trader, |
| course) foolproof, with prices being displayed | | | | both new and experienced. This account enables you |
| automatically, different colors for buying and selling, | | | | to test strategies and techniques in real time to see |
| and so on. | | | | if they really work, without risking real money. |
| Apart from the trading platform the main service | | | | There's a temptation to trade recklessly precisely |
| that such sites provide is up to the minute news and | | | | because it's not real money, but my advice is always |
| news feeders. Now you have at your disposal all the | | | | to treat is as real money if you really want to learn |
| instant news that the internet provides, all the | | | | and to have reliable results, whether good or bad. |
| information bearing on your trading that you could | | | | 4. Trading robots |
| desire. Unless you are a strict technical analyst taking | | | | These are the latest tools to arrive on the financial |
| no notice of news or other events that may | | | | trading scene. Pioneered in the forex market, they |
| influence future price movements then you need | | | | are beginning to establish themselves as mainstream |
| constantly updated financial and market news. | | | | stock trade software. In theory, you set your |
| 2, Charts and indicators | | | | parameters, e.g. how much of your capital to risk on |
| These have evolved beyond all recognition as well. | | | | any one trade, stop loss levels, and load your chosen |
| Most brokers, and many web sites not linked directly | | | | indicators or "expert advisors", and the robot will |
| to any individual broker, have charting services | | | | open and close your trades for you, taking away the |
| available, which invariably include a host of indicators | | | | human emotional element that so often leads to |
| that are customisable to your requirements or those | | | | losing trades. |
| of your trading system. | | | | At the present time they don't seem to be able to |
| Now charts are available on any stock, index, | | | | take into account the fact that market prices are |
| commodity, bond or currency traded on any financial | | | | influenced by humans, with all our emotional baggage. |
| market, and in most cases they can go back for ten | | | | But there's nothing to say they can't evolve and |
| years or more. In seconds you can load your own | | | | improve. In the meantime, if you're tempted to buy |
| simple moving average settings or any other indicator | | | | one, test it out thoroughly with a demo account |
| or combination of indicators onto them. | | | | before risking real money with it. |