Trading software is a widely used tool for traders. Also because the offer is very high, so you may be spoilt for choice, regardless of price ranges (which are the most varied). Finding a good trading software, however, is not at all easy, since the issue concerns not only purely strategic but also technical evaluations.
In this article we propose an overview of trading software and offer some easy to put into practice tips to make a good choice and then buy an efficient trading software in line with your needs.
Are trading software useful?
This is the first question that comes to mind for those who, as a trader, have never used trading software. It is a more than legitimate question, the skepticism regarding the relationship between technology and trading is more than physiological, since trading and speculative investment in general have always been considered purely human activities, which require the use of intellectual energies.
In reality, the trading software, if well done, can give a hand to the trading, until to realize an increase of the chances of profit. The reason? They allow to overcome some “limits” of human nature. Here they are.
Emotionality is a big limit of traders, of all traders. More or less, emotionality is an obstacle, an indelible presence. No wonder, as the stakes are by definition very different. Stress is the order of the day. Nothing can be done about it but to prevent emotionality from affecting not so much the quality of life as the quality of trading actions. Very difficult to say the least.
Trading software allows you to overcome this obstacle, eliminating the problem at its root (or almost). How? Simple: they replace the trader at the moment of maximum emotional upheaval, i.e. operativeness.
The man is wrong. It is not a perfect machine. Actually, it’s not a machine at all. So the risk that he may make errors of assessment, rather than calculation, is really high. There are many factors that induce error, including the presence of cognitive bias.
Trading software makes it possible to overcome this limit, giving maximum objectivity to the trading action. Sure, as it is logical that this objectivity is compensated by a rigidity typical of machines, but for some it is a price to pay willingly.
In this case we are talking about coverage in terms of time. Of course, no matter how strong a trader’s willpower is, he cannot cover the whole day. And even if he did, after some time his performance would drop. If for no other reason than tiredness.
Now, trading software does not get tired or show drops in performance. From this point of view, for better or for worse they are very regular. Hence one of their most important advantages: they allow the market to be present at all hours, 24 hours a day. This is no small detail, since more hours of trading means more opportunities to be seized.
How to recognise good trading software
Having said that, how do you recognise good trading software? As already mentioned, it’s not easy at all. Also because the offer is very high and quite varied. First of all, it is necessary to make one thing clear: given the need for high average efficiency, there is no better trading software in absolute terms, but software that responds better than others to your specific needs. In order to evaluate the opportunity to buy this or that software, it is necessary first of all to analyse your trading style.
However, here are some tips for choosing good trading software.
First of all, it is necessary to analyse the information that the software developers or owners themselves release, obviously officially. In this way, you make an initial evaluation, however superficial, and you can guess whether or not that software can do the job for you.
The information, marketing elements aside (which are legitimate), should be precise, and clearly indicate how the software works and what it allows to do, even its limitations. This information can be found on the official website dedicated to the software, or even just on the landing pages, which often serve as a summary (as well as a marketing element).