Online trading tools offer many opportunities to the individual trader. Traders can trade the main indices, individual stocks, including technology stocks, commodities and forex markets, all online, all from anywhere in the world. Having online trading tools in your belt puts you ahead of the competition and gives you the ability to know things that they possibly don’t.
Recommended Online Trading Tools & Resources
To be a successful online trader, one needs the right tools. Those tools include:
- Economic Calendar
- News Feed and Sources
- Online Trading Platform
The economic calendar lets you know when the major data releases for each country are scheduled. Data moves markets and you don’t want to have a position on and have it be affected by a news release that you weren’t prepared for. Not knowing can be very costly to your pocketbook and that’s not what an online trader wants.
News Feed and News Sources
To analyze the data releases, a trader needs a reputable news provider such as Dow Jones, Bloomberg, or Thomson Reuters. News is the lifeblood of the online trading industry. When news happens, it’s all about thinking, analyzing and reacting as the news happens. The news allows the trader to determine the market sentiment – is the news bearish, bullish or neutral? The trader then trades accordingly. A trader also needs to search the web for commentary and analysis of the various data that comes out and the day’s events.
The charting and online platform usually go hand in hand. A great online platform will have charting capabilities. You don’t want to be looking at charts on one screen and then have to switch to another to execute your order. All should be seamless and on the same screen.
Online Trading Platform
If one takes all of the above and packages it, they have the tools necessary to be successful in online trading.