If you’re new to trading, here’s a little secret — it’s not always about the best tool, it’s about the right combination of trading tools that can literally make you a Wall Street wizard.
In fact, every trader I know uses a specific combination of trading tools to maximize their profits in this booming market, where the market size for trading platforms is expected to reach $15.62 billion by 2030. (Source: Grand View Research)
I’ve personally spent countless hours testing different trading software, and I finally found a combination of tools that are now helping me make better trading decisions.
So, in this read, I’ll be breaking down some essential software pieces that every online trader needs to extract the major profits from the market.
Let’s start!
Trading Platforms — The Core Tool
This would be the heart of the whole operation — the platform in which you’re deciding to trade. When I first started my trading journey, I didn’t give it much thought, as I thought they all do the same thing, and, I learned the hard way that they are not.
As I went on exploring different trading platforms, I realized that they each have a unique interface that can make or break a user’s experience.
I first started my journey with MetaTrader 4 (MT4) which has been a popular choice among the traders for years now, but then I discovered TradingView. MetaTrader 4 compared to TradingView offers some fine automated trading capabilities, while on the other hand, TradingView comes with some striking charting tools and community features.
Do You Know?
According to Future Business Insights, the online trading platform market is expected to hit a staggering valuation of $16.71 billion by 2032, with a CAGR of 6.4% between 2024 and 2032
Charting and Technical Analysis Software
I remember the time when I used to rely heavily on the basic charts that my broker provided. Although they were perfect for a quick glance at the price movement, they lacked the depth and customization I needed.
And, this was when I started discovering the dedicated charting software. This gave me access to a wealth of tools, such as customizable charts and technical indicators, that really helped me identify a potential trading opportunity.
Risk Management Tools
Having a clear exit strategy is a must in any trade, otherwise the loss can be huge. This is why it is often suggested to explore some risk management tools. These tools can help you determine the right amount you need to allocate for the trade based on your risk tolerance capacity.
In addition to that, these tools also help you apply a better stop-loss to reduce your potential losses by automatically exiting the trade when the price reaches the predetermined price.
Automated Trading Software
When I first heard about automated trading, I was immediately intrigued by the concept of making a trade with AI algorithm, even when you’re not truly focusing on the current price movements. So, to try this, I tried exploring some automated trading software, and let me tell you the experience of it more than what I expected.
For instance, I was using it to receive automated alerts, whenever specific market conditions were met. This not only saves my time but also opens my eyes to the greater trading opportunities.
Portfolio Management Software
Portfolio management, as the name suggests, involves the process of building and looking over a selection of stocks, bonds, and cash that meets an investor’s long-term financial goals.
And, speaking of my personal experience, the main benefit of using a dedicated portfolio management tool is its ability to consolidate all of my holdings in one place. And, just by linking my brokerage account to the platform, I can now get a real-time view of my portfolio’s value, asset allocation, and how it is performing overall.
Economic Calendar Tools
No doubt that economic events can have a major impact on sudden market movements, which makes it crucial to stay informed on upcoming economic events.
That’s why it’s usually suggested to use an economic calendar tool, as it can provide you with a detailed schedule of the upcoming economic releases. Be it about interest rate decisions, GDP reports, or even employment data.
Mobile Trading Platforms
Using your desktop for the eerie trade you make is not practically possible, especially when you’re traveling or just away from your home. And, this is right where platforms like MT5 come into play that help you make informed trading decisions just by using your phone.
These tools come with literally every feature you can access in your desktop, including advanced charting, real-time quotes, or even the ability to place complex orders. This helped me stay connected with the market and efficiently react to the opportunities, no matter where I was.
The Bottom Line
Looking back at my trading journey, I can now honestly say that having the right software can be instrumental for your trading goals. At the beginning of my journey, I also made several mistakes, however, I learned from them and built a toolkit that works for me.
So, by assembling a perfect combination of tools that complements your trading style, you can also make informed decisions and maximize your profits.
