Tools for Online Trading
Investments have become a necessity these days. You cannot achieve your financial goals and fulfill your required monetary targets just based on your savings. Trading helps you grow your finances and give you good returns over some time. Earlier trading had to be done with a help of a broker and not much was known by a common person like you and me. Now the trend has changed and online trading is becoming popular. Online trading helps you invest your money directly into the market without going through any discount broker.
Below are some useful tools that will help you trade better
1. Online trading platforms: There are many online platforms and software which provide you an in-depth review of the stocks and allow you to make a better investment. They study the market in detail and the performance of the companies in the stock market. An accurate picture is given to you based on the daily prices of stocks on BSE and NSE.
2. Charts: Charts are useful for traders to understand the performance of the stocks in the given period. It will help you understand better the movements in the market on a daily, weekly, monthly, and yearly basis.
3. Technical Indicators: Technical indicators are also similar to charts but better. They provide information regarding the future performance of stocks based on past performance. These indicators are mostly used for short term trading.
Types of technical indicators-
Moving averages: It gives you an average price of a stock over a given period.
For example, a 5- day moving average will provide an average price of the last 5 days.
Bollinger Bands: The band provides a curve for both the upper limit of the fluctuation average and the lower limit. A middle line shows the actual average of the stock price.
On Balance Volume: It is a combination of price and volume to show the buyingand selling pressure.
Relative Strength Index: It shows the speed of price change and recognizes bought and sold conditions.
There are few other such indicators which help you to trade efficiently.
4. Live News: Online trading is a volatile market. Sudden fluctuations, both positive and negative can arise due to any major event. News of such events can affect the market. Keeping track of the live news feed is important for any trader. Breaking news can break
or make the market instantly.
5. Radio Feed: A live radio feed is one of the most important tools for online trading. Live radio provides info about stock performance, major financial events, security prices, etc.
It is even faster than live news and acts as an analyst to make your trade better.
Conclusion
Online trading tools and their efficient use keeps you ahead in the game. Yes, risks are involved,
but nothing comes in hand without risk. Driving your car on a busy road is also a risk that
doesn’t mean that you stop driving; you do it with safety and caution. Similarly, you need to
gather info and study the market before investing.