The Software Of The Stock Market Trade
As a partial owner of InvestingGuruMinotor, a stock information site, I get asked questions on a daily basis about programs I use to trade better. Something a lot of people inquire about is “What stock trading software do I use, and what other resources do I recommend?” They ask about a whole range of other things too, like brokers, my picks, and even general interest about my family.
I figured I would answer a few of these questions in a public form so hopefully I wont have to answer them repeatedly.
Brokers: I strongly suggest you look into using one of these two day trading software programs: MBTrading or CyberTrader, with a strong personal bias for MBTrading. I really only prefer MBTrading because it was what I started with. Make sure you remember we’re talking about daytrading, if you are a non-intraday investor there are different tools that will be better for you. For day trading, fast execution and customer service are the two most important considerations on which you need to base your decision. Many people are really concerned with commissions, but that train of thought can cost you in the end. Since the market for brokerage is so competitive there is little differance in costs, and where there is additional cost there is additional benifit. Having a trade go through slowly, or even worse incorrectly, can end up costing you hundreds of dollars in time and money compared to the slight additional cost of choosing the right broker.
I often make the somewhat silly analogy of “trying to trade with anything other then a fast, point and click day trading system like MBTrading or CyberTrader, is like trying to win the Indianapolis 500 with your family mini-van.” The other thing you need to be cautious of is people recommending “their own” discount broker. Many are given incentives to have their friends sign up and I’ve heard of people making more money that way then in stocks. It’s easy enough to say that the differences between programs in major.
Quotes and Data Feed: Depending on which broker you choose, you may also need a stand-alone quote/data feed. I suggest you ask the broker you choose to make a recommendation here. It’s likely that they have had experience with a lot of different data feeds and know what works best with their system. No matter what service you get, two things you need need need is Level II quotes for both the NASDAQ and Dow stock exchanges.
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