How To Choose The Suitable Trading Software

December 12th, 2010

You’re thinking about getting into the trading business; you’ve been doing it sort of casually with a few thousand, and you’re contemplating taking that next thing. You have just inquired with your accountant to go over the general capital gains things to bear in mind about professional trading, and those sorts of volumes, and you’re all cleared there, now all you’ve got to do is really evaluate and look into, seriously, these trading software applications. You’re searching for a handful of key benchmark criteria when you review these systems. Firstly, you’ll want to identify if the software is something that’s stand alone or hosted.

Should it be stand alone there are specific pros and cons. It used to be that you usually got all the best features and systems specs on stand alone systems because stand alone products really gave you the better performance. You would have had a really hard time finding a single hosted stock trading software program back in the day, well, even just a few years ago. Nowadays however, a lot more companies are offering hosted programs and platforms. Though what’s absolutely given is that you have the ability to back test with one of these systems.

Back testing means that you can set up a trading program, and then you test those programmed concepts, against 10 or so years of back information. Nevertheless that’s the catch, as a lot of systems are in fact limited in terms of the volume of back data they are actually able to process, so you should inquire about that whenever you can. You’ll want to see how it performs, how well it actually performs after the bell has rung and try it out for a test drive at around 6:30 AM PST, 9:30 AM EST. You can just click around the software as you test it, you don’t necessarily have to ask about exiting out after you’ve deposited some test funds.

Most programs will let you beta test or even just trial their system out. After which most importantly you’ll want to figure out what the per trade fees are like, and you’ll want to consider that into your business strategy, make sure that the system checks out with your metrics for benefiting on a per day, weekly basis. Your product needs to truly tune well into and jive with what you’re trying to achieve. The area of technical analysis software really is a personal one, and it really needs to conform to you and your trading style. If it doesn’t, you’re bound to slip up, and begin making a few bad trades; the relationship with the system’s got to be fluid.

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