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Stock Analysis Software – A Quiz to See If it Can Help You

Over the last thirty years I have seen the invention of more and more powerful versions of stock trading software, but when it comes to selecting the best stock analysis software for your personal needs, I think the adage that should apply is “Simplest is best.” This is not to berate the power of many stock market software packages, I want my stock trading methods to simplify, and I do not want to be overcome with too many options.

As a result, I tend to prefer very simple trading systems and techniques.

Tips for Choosing the Best Stock Trading Software

At one time I used a system of index cards and post-it notes to keep track of my trades. I have tried EXCEL spreadsheets and other forms of computer automation, but frankly, these simple manual methods seem best because you can pick up your log and take it with you to lunch or anyplace else for analysis.

However, nothing beats a watch list in the best stock analyser that can tag individual companies for potential signals. You want to look for this in any system you buy.

Stock Analysis Software - A Quiz to See If it Can Help You

Wide variety of entry and exit methods

Another thing you want to look for is a wide variety of entry and exittechniques you can apply to your stock lists. This might include moving average crossovers to relative strength indicators, valuation models, trendline breakouts, new high or low breakouts, Elliott wave corrections, and more.

Graham himself used a simple 50% profit rule or two-year holding period to get out of value stocks he purchased, whichever came first.

Stock market charting software packages

However, if we are talking about stock analysis or stock market charting software packages, that is a different story. In this case, it is all about analysis to find shares of interest, and it is up to you to do with it what you like. Stock analysis software only shows you indicators, but a human has to pull the trigger. For this, it aids to have a visual look at the stock of interest.

Now if you do not feel comfortable with a stock trading software package, skip it once again unless they give you a free trial. Most large cities have an investment expo where various packages are shown in real time, and if something looks too complicated to master, move on to something else.

The cost of the stock software

If you are ready to purchase software and it is expensive, but the company is small, that is another indication that you have to pause and think for a bit. If it is small and you are paying $2000 for a package, will they be there for upgrades and technical support in a year’s time? Will they be around for money back guarantee to kick in?

Lastly, make sure your stock software has a charting feature that lets you see the target market, for that will make it easier for you to trade with confidence. Having traded hundreds of black box systems over the years, I cannot tell you how much advantage there is to have a great stock charting feature in your best stock analyser, because since no system is 100% fool proof, a stock chart helps me eliminate bad trades manually.

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