Selecting a stock Trading Platform
You’ll find as many different approaches to trading as you’ll find traders.
Fortunately, almost as many alternatives for setting up your trade environment
also exist.
As technology develops and expands, online brokers are providing increasingly
powerful trading tools for their clients. These tools include market
research, charting capabilities, streaming prices, and news services. If your
broker doesn’t offer a specific service, you probably can find it offered on the
Internet.
When selecting a trading platform, look for the capabilities you need today
with an eye toward future expandability. You may want to consider the features
in the three lists that follow.
Trading tools to look for include the following:
✓ Stock trading
✓ Support of sophisticated option stock trading strategies
✓ Futures trading, especially single-stock and index futures
✓ Nasdaq Level II access
✓ Direct-access trading and ECN book data
✓ Watch lists
✓ Automatic e-mail or text message notification when a stock hits your
price point.
Analysis tools to shop for include these:
✓ Sector analysis
✓ Proprietary and third-party analysts’ reports
✓ News feeds (Dow Jones, Reuters, and so on)
✓ Real-time charting capabilities
✓ Time and volume sales reports
Account management tools you may need include the following:
✓ Real-time account balances
✓ Real-time updates of buying power and margin exposure
✓ Portfolio management tools
✓ Open-order status
✓ Ability to transfer funds electronically to/from your account Before putting your computer to work as a trading platform, you need to understand the two primary techniques for delivering trading tools and services.
The first uses your Internet browser to enter orders and deliver all
information. The other approach uses a stand-alone software program, called
an integrated trading platform, to interact with your discount broker and your
investment account.
The approach that suits you best depends somewhat on your trading style,
cost considerations, and your computer’s configuration. You may find that the
level of service your dealer offers depends on the size of your account or your
trading volume. You have to balance your cost with your actual information
needs.
Integrated trading platforms typically are direct-access systems. We discuss
both direct-access brokers and traditional online brokers in Chapter 3.
Although direct-access systems are offered in browser-based configurations,
active swing traders and day traders may require a completely integrated,
direct-access trading platform.
Fortunately, almost as many alternatives for setting up your trade environment
also exist.
As technology develops and expands, online brokers are providing increasingly
powerful trading tools for their clients. These tools include market
research, charting capabilities, streaming prices, and news services. If your
broker doesn’t offer a specific service, you probably can find it offered on the
Internet.
When selecting a trading platform, look for the capabilities you need today
with an eye toward future expandability. You may want to consider the features
in the three lists that follow.
Trading tools to look for include the following:
✓ Stock trading
✓ Support of sophisticated option stock trading strategies
✓ Futures trading, especially single-stock and index futures
✓ Nasdaq Level II access
✓ Direct-access trading and ECN book data
✓ Watch lists
✓ Automatic e-mail or text message notification when a stock hits your
price point.
Analysis tools to shop for include these:
✓ Sector analysis
✓ Proprietary and third-party analysts’ reports
✓ News feeds (Dow Jones, Reuters, and so on)
✓ Real-time charting capabilities
✓ Time and volume sales reports
Account management tools you may need include the following:
✓ Real-time account balances
✓ Real-time updates of buying power and margin exposure
✓ Portfolio management tools
✓ Open-order status
✓ Ability to transfer funds electronically to/from your account Before putting your computer to work as a trading platform, you need to understand the two primary techniques for delivering trading tools and services.
The first uses your Internet browser to enter orders and deliver all
information. The other approach uses a stand-alone software program, called
an integrated trading platform, to interact with your discount broker and your
investment account.
The approach that suits you best depends somewhat on your trading style,
cost considerations, and your computer’s configuration. You may find that the
level of service your dealer offers depends on the size of your account or your
trading volume. You have to balance your cost with your actual information
needs.
Integrated trading platforms typically are direct-access systems. We discuss
both direct-access brokers and traditional online brokers in Chapter 3.
Although direct-access systems are offered in browser-based configurations,
active swing traders and day traders may require a completely integrated,
direct-access trading platform.
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