You may be wondering if you need stock charting software. It all actually depends on your personality and style as a trader. As a neophyte in trading systems, you might just want to try your hand at trading without using any expensive tools. On the other hand, having a reliable charting tool on hand can spell the difference between success and failure.
Without a doubt, using a trading system is the most significant choice you will ever make in your trading career. Obviously though, a system that can work well for some people may fail you if you do not have the appropriate tools to use with it. Your stock charting software is among these useful tools. The most basic function of such a tool is to obviously help you make charts. The best programs however take one step further. Trading charts can give you a quick and reliable scan of available assets so you can easily identify which ones you would like to trade based on your criteria.
The only issue with picking and utilizing chart tools is the abundance of options. This is why it is crucial to identify certain elements, components or traits that you would like to find in a charting package.
The first major quality of a good software tool is longevity. Pick one that has been around for quite some time. This quality will give you some assurance that the stock charting software is stable. Moreover, the fact that it has been around for long is an indication that it is likely to stick around for even longer. You don’t want to have to take a lot of time and effort learning how to use it only for it to become useless the next day because support has been pulled out.
Having a huge user base is also a good quality. Aside from program manuals, actual users can give you good insights, tips and advice about using a tool. This is especially since many serious users of charting software take the time to unlock program secrets that aren’t always indicated on the manuals. In short, the more users there are, the more help you can get for questions that you can’t find the answers to.
Flexibility is the third crucial trait to look for in a tool. Some are categorized as black box systems. You can use these straight out of the box without too much effort. In most cases though, these cookie cutter systems aren’t worth a cent simply because they leave you blind to what is really happening behind the curtains. It is incorrect to believe that an automated system can do all the hard work of raking in big profits. Stock charting software should give you enough room to define your own criteria.
Back testing compatibility is a final quality to look for in a charting package. Back testing is the method that you use to check if a trading system is likely to help you make significant gains. Some charting software packages already have back testing tools attached to them. It’s best though to settle for tools that let you use other testing facilities. This will ensure that you can use a tester that has everything you want or need.
It’s not always easy to find out if specific charting software can be helpful or not. In case you are still in the process of mulling over using one or not, it may be beneficial for you to at least settle for trial use.
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