One of the essential tools you'll need to start trading is a stock charting program. The problem is how to choose the right one with so many different options available to you. Should you choose the cheap ones or are more expensive ones best?
The truth is that you don't have to spend a great deal of cash to get a good piece of software. In a lot of instances, software prices are greatly inflated. They do this on purpose of course just to give the impression that their products are of the highest quality, thereby justifying the price. The thing is, many cheap packages work the same as expensive ones.
This is not to say though that you should buy the cheapest option there is. Some cheap packages have low prices to encourage traders to buy. They then tie up their more expensive data plan with the software, forcing traders to buy the plan as well.
It's safe to say that price shouldn't be your main criterion for choosing a package. There are many other features and traits you should be looking into. Here are some of them.
One of things you should research about first is the duration that a tool has been around. How long has it been in the market? Some tools are here today gone tomorrow. Sadly, when they disappear, so will product and customer support. That'll be a nightmare for you since you'll get stuck with software that'll essentially be useless in the long run. Hence, you should stick with packages with longevity.
It's crucial to try to get to know the quality of the user base as well. Find out what software users are like and how many they are by going into message boards and communities. Having many users is a good indication of a tool's reliability. Obviously, the more users, the more people think it's an excellent tool. Also, these same users can serve as your backup support when you need help.
Check that a tool is compatible with testing programs or facilities. Back testing is one way you can find out if a system works well with trading data. You need to back test any plan that you want to use to trade before you use it. You won't actually be trading real stocks but testing with historical trading information should be sufficient to let you know if your system is rock solid and likely to give you the results you want at the risk levels you're willing to take.
One final point of evaluation is the availability of data plans. Some charting packages are so rigid and limit you to data plans that are exclusive for their software. It's generally not a good idea to settle for arrangements like these because not all data plans are reliable. You'd be better of with a package that will let you use a data plan of your choice.
Just like any product, charting software can come in many different kinds and types. As a buyer it should therefore be your top priority to evaluate your options to make sure you get the best tool for your money.
The truth is that you don't have to spend a great deal of cash to get a good piece of software. In a lot of instances, software prices are greatly inflated. They do this on purpose of course just to give the impression that their products are of the highest quality, thereby justifying the price. The thing is, many cheap packages work the same as expensive ones.
This is not to say though that you should buy the cheapest option there is. Some cheap packages have low prices to encourage traders to buy. They then tie up their more expensive data plan with the software, forcing traders to buy the plan as well.
It's safe to say that price shouldn't be your main criterion for choosing a package. There are many other features and traits you should be looking into. Here are some of them.
One of things you should research about first is the duration that a tool has been around. How long has it been in the market? Some tools are here today gone tomorrow. Sadly, when they disappear, so will product and customer support. That'll be a nightmare for you since you'll get stuck with software that'll essentially be useless in the long run. Hence, you should stick with packages with longevity.
It's crucial to try to get to know the quality of the user base as well. Find out what software users are like and how many they are by going into message boards and communities. Having many users is a good indication of a tool's reliability. Obviously, the more users, the more people think it's an excellent tool. Also, these same users can serve as your backup support when you need help.
Check that a tool is compatible with testing programs or facilities. Back testing is one way you can find out if a system works well with trading data. You need to back test any plan that you want to use to trade before you use it. You won't actually be trading real stocks but testing with historical trading information should be sufficient to let you know if your system is rock solid and likely to give you the results you want at the risk levels you're willing to take.
One final point of evaluation is the availability of data plans. Some charting packages are so rigid and limit you to data plans that are exclusive for their software. It's generally not a good idea to settle for arrangements like these because not all data plans are reliable. You'd be better of with a package that will let you use a data plan of your choice.
Just like any product, charting software can come in many different kinds and types. As a buyer it should therefore be your top priority to evaluate your options to make sure you get the best tool for your money.
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