• Stock Trading Software

    Stock trading software provides an unbiased edge that will help you profit from trading. There are several kinds of software available on the market and our goal is to help sort it all out and show you our favorites.

    Since the inception of the stock market, there have been many ways to keep track of the complicated statistics that are inherent to the world of stock trading. The telephone and teleprinter, the latter being a precursor to the fax machine, served as methods of receiving financial quotes and other information about stocks during the early 1900’s.

    Much has changed since the days of paper trailing and pencil pushing, as the advent of spreadsheet processors eventually pushed such primitive devices out of the broker’s desk. When the internet rolled around, many who ironically invested in data delivery companies didn’t specialize in internet services. The eventual widespread implementation of the internet found yet another home in the world of stock trading, connecting brokers around the world.

    The stock broker’s computer would be nothing without the programs made for stock exchange purposes, and for this, we’ll introduce a short primer on these programs for both the at home trader or the one that calls the local stock exchange his home.

    A Short History on Hardware and Stock Trading Software

    A stock broker’s best friend since the advent of telephony was, not surprisingly, the telephone. In fact, a typical stock broker’s desk would have been overcrowded with an absurd amount of telephones by the 1960’s, as traders juggled between telephone handsets to discuss business with brokers, buyers, and other people of financial importance simultaneously. However, telephone conversations were prone to misunderstandings which may have proved to be disastrous in some occasions; if the two dealing parties do not clearly understand each other on trade terms discussed over a murky phone connection, it may end up too late to fix any anomaly in a transaction if one was ever discovered.

    The advent of electromechanical and electronic calculators became a great boon to the arsenal of tools available to the broker, as simple calculations no longer meant wasting paper, pencils, or pens. After these calculators came the PABX, or private branch exchange telephone lines. These simplified telephone lines, along with the development of display solutions which catered to the stock broker, gave way to video monitors which soon populated the broker’s desk.

    The overarching problem with these computers followed the technology all the way up to the computerized spreadsheet days: proprietary software made it difficult to share stock data between people who were split up into Microsoft and UNIX users. Microsoft Excel eventually won out as the stock broker’s choice for spreadsheet purposes, and also helped propel the Microsoft NT platform into widespread use and further development.

    Stock Trading Software Advantages & Disadvantages

    While spreadsheet applications such as Excel have been on traders’ desktops since the 1980’s, programs that had accurate information that was also displayed in real time hadn’t quite caught on yet. The sheer diversity of calculations, statistics and other information relevant to the stock broker could have sometimes put pressure on computer technology available back in the day.

    Computers in this day and age are both powerful and include effective software that can handle the intense workload of a stock broker. Stock trading software comes in many different categories, from basic programs for the at home trader, and advanced software for the broker who lives his life on the bleeding edge. Some programs may come free with an online brokerage account, while stand-alone stock trading systems which scan the markets in real-time and help determine the time and kind of stocks to buy are available to stock brokers today.

    In its most basic form, stock trading software can be the program you use from your online broker membership site to access stock quotes and statistics. Some sites may have these programs on web based platforms, while others offer these as programs that you need to download and install into the computer.
    Scanning tools are available to members who join online brokerage accounts. These programs are designed to alert you of any stocks that meet conditions set by the user inside the program.

    Other stock trading programs then allow you to initiate and execute trades or deals. Other programs may include features such as trade monitoring and online account management. Even basic charting capabilities come standard on programs such as these, so keeping track of stocks on a handy graph should be no problem at all.

    Some online brokerage sites may charge a fee for stock trading software which features back testing of different trading strategies. This feature tests other certain kinds of trading strategies on your previous deals, showing trades that would have been lost or won depending on the kind of strategy the user inputs into the program.

    Separate charting software can display more advanced graphical and technical analysis which cannot be found in the features of default programs. Stand alone software which allows a trader to partake in and execute trades should also be available to would-be brokers, as these may include more advanced parameters and filters needed when conducting deals.

    Remember: When making a break into the stock market, you should never risk money that you can’t afford to lose. Don’t end up allocating the money you have set aside for your mortgage or living expenses for stock trading, as many end up bankrupt or homeless after using money for stock trading that shouldn’t have been used for such purposes in the first place. Always take time to weigh in the risks that your potential investments may have on your financial situation. With a little due diligence and hard work, you should find success in discovering new ways to profit by using stock trading software.

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