Free stock trading software is a method of investing in the stock market gaining widespread acceptance. With new software and brokerage accounts available on the internet, it is now easy for anyone to trade stocks online. With online accounts, buying and selling shares is no longer the exclusive preserve of the Wall Street. Stock trading software allows you to trade from the comfort of mobile devices on the go. They usually contain analytical information, news and trends required to make purchase decisions.
Free stock trading software –Fundamental analysis
There are two basic guides to the purchase of stocks. The first is called a fundamental analysis. This analysis is arrived at by studying a company’s public financial statements, such as quarterly and annual reports, income statements, tax releases and balance sheets. Public activities of the company such as new ventures and appointments are also studied. All these are used to determine the long-term health of the company. As all these pieces of information are available online, it is easier to wholly trade stocks personally. The fundamental analysis is more widely accepted as is relied upon by investors to choose stocks.
Free stock trading software- Technical analysis
The second is the technical analysis. This studies the short-term movements in stock prices making use of moving averages. It is usually used by traders who are in the market for profit in the shortest time frame. It helps in the identification of patterns that show the ceiling price of stocks and their floor price. This helps to predict when the price a stock is not likely to go beyond. Thus traders can buy when a stock is close to its floor price, and sell when it is at its ceiling price to make maximum profit.
Before purchasing, it is important that the long-term investor thoroughly research the company and its leadership, history, industry, competition, and recent major announcements. Any of these could affect the price of that company’s stocks. A combination of the two analyses is useful in selecting stocks to buy. You can choose stocks to invest in based on their fundamental analysis, and then study the technical analysis to determine at what point a purchase should be made.
Free stock trading software –Short selling
When a trader sells borrowed shares in the hope that the price would fall, it is referred to as short selling. Experienced traders who intend to buy the shares at a lower price than they sold them in the first place do it. They can thus make a quick profit. It is however very risky.
Free stock trading software- Application options
Online brokerage firms offer software once one opens an account with them. The applications perform a variety of functions that enable the investor to research, analyze, and trade stocks and companies. They may also have features for alerts and updates, enabling the trader to monitor prices on the go. Selection of software should be guided primarily by the expertise level of the trader. Novices should select applications that support basic functionality, while experienced traders should use applications that fit specific, individual needs.