Home » Analysis Software » FIVE TOOLS TO RESEARCH STOCKS


Stock analysis is a term that refers to the evaluation of a particular trading instrument, an investment sector or the market as a whole. Stock analysts attempt to determine the future activity of an instrument, sector or market. There are two basic types of stock analysis: fundamental analysis and technical analysis.

Below are listed stock research or analysis tool;

  1. A strong trading platform

Choosing a broker with a robust trading platform is step one, and it can create a tricky balance. Often, brokers with advanced trading platforms have higher trade commissions or require a minimum number of trades or a minimum account balance to access the platform. There are, however, some clear leaders here: TD Ameritrade heads the pack with its thinkorswim and TradeArchitect offerings, both of which are available to all customers (though its trade commissions are on the high side at $9.99). Options House also has strong trading tools with a lower commission at $4.95 per trade. And for advanced traders, Interactive Brokers has a well-regarded platform and low commissions.

  1. A mobile trading app

If you’re serious about trading, you’ll want to be able to do it on the go, which means choosing a broker with a strong mobile trading app. These apps range from bare-bones the ability to execute basic trades and view quotes to a near mirror image of a Web or desktop platform, with advanced capabilities like charting, complex options trades and stock screeners. Two of the best online broker trading apps are from TD Ameritrade and E-Trade.

  1. Stock screeners

Stock screeners take much of the weight off the trader’s plate, allowing you to quickly search for a stock based on criteria you’ve defined, like market capitalization (in other words, the value and size of the company), dividend yield, industry or share price. Most of the trading platforms offered by online brokers include a screener, and some brokers also have screeners for exchange-traded funds, mutual funds or options. But many advanced traders recommend Finviz, which has in-depth screening capabilities that can help you dial down to trade opportunities. The site also offers charts, U.S. and international market maps and quotes. The basic services are free, but Finviz offers an elite subscription that starts at $24.96 a month.

  1. Stock charts

Charting is integral for any trader who uses technical analysis, which involves evaluating past movements as a means to predict future performance. Stock charts assist in that analysis by showing the performance of a security over time, allowing traders to recognize patterns and look at various technical indicators. Users can employ charts to dig into a stock’s history and recognize volatility, and can compare multiple securities and benchmark performance to indexes, like the S&P 500. Online brokers offer charting capabilities that vary in depth; outside resources include websites like Trading View and StockCharts.com, which both offer a number of free features as well as upgraded memberships. StockCharts.com offers a Chart School to get new users familiar with charting.

  1. Idea-generation tools

There are a lot of ways to come up with trade ideas, including subscription-based services. Briefing.com is one of the most popular, offering live market updates, IPO previews, emerging growth stock opportunities and more. Another service, Seasonalysis, identifies seasonal stock trends. The other form of analysis frequently used by traders is called fundamental analysis, which involves digging into financial statements, company news and outside research reports by professional analysts. By doing this, you get a clearer picture of how individual companies and industries are doing, and that can lead to trade ideas.

Brokers often provide this information from third-party sources, and the more research available, the better. Fidelity in particular is known for its breadth of research.

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