Just like a Pilot has to trust their instruments when flying in bad weather, a Day Trader must be able to trust their tools. If you talk to any traders you will find out they all agree that there is not one platform or service that provides everything they want in one location
The Top 5 tools for me include a reliable Level 2, a reliable stock scanner, a reliable charting software, reliable community of traders and a reliable trading site.
Reading Level 2 for profits
Having an in depth level 2 market data is in my opinion very important. Without being able to see where the big orders are on the book you are trading blind. Being able to see a buyer or seller refresh their bid to get their bigger order is very important. Understanding where the strength lies on the volume is very important.
Why do I like Think or Swim? I love that I can see GSCO or Goldman Sachs to see where they lie on the books. Many times I use their bids or offers as targets as they have a great deal of capital and can help to move the market. I will track their initial bid and offer 15 min after open. If they move their offer up there is a chance that the price will continue past their first offer, but it still remains a target.
The second one I use is Schwab Street Smart Edge that shows bigger orders and the refreshing of orders on bids and offers more easily as well as a time and sale box that shows when a sale goes through the ADF or Alternative Display Facility.
I love being able to offer people free alternatives but I haven’ been able to find a free real time level 2 quotes online.
Best Stock Scanners
I know you are thinking more than one scanner what Jane you must be crazy. No I don’t know of any more than one because I do have a free stock scanner to offer to you on this one. First we will start off with the best stock scanner.
Trade Ideas is an amazing software that has been evolving since 2002 and with 17 years of tweaking and feedback from their customers and outside users it is an amazing software. You have the ability choose to use the scanning and alerting by itself. You have the ability take the premium version to back test you strategies and use their Artificial Intelligence Holly to generate ideas for you. You have the ability take it one step further and automate your trading directly with certain brokers. A software built by traders for traders. They also offer a free trading room and a free web version of the product with delayed data.
The Second top scanner that I am happy to enlighten new traders about is Finviz.com They have a free version and a paid version. The paid version obviously gives you more abilities, but the free version is amazing and great for end of day scanning. They also offer an amazing map of the market sentiment by sector.
Stock Charting Software
For Charting there are a couple options that I really love. The best charting software to me is Tradingview.com. One of the main reasons why I love this software is because it is so easy to use on a mobile device. I set everything up on my laptop. I set levels to watch alerts and then when I’m at the gym getting in a workout I receive my alerts and can see the same charts. Some platforms especially brokers offer different views on the desktop versus the mobile device.
My second favorite charting software is Trendspider that has the first ever that I know of rain drop candles. Truly only second because they are a new company and don’t have their app up yet. Since I’m a big follower of volume they use the data feed to create these candles which help to show where the volume flow was during that candle. Best way to describe it is to show you an image Worth 1000 words right!
Also the ability to have multiple time frame analysis on one chart. Where you can use a 5 min chart to trade but see the daily averages as a dashed line to know where the price action might stop.
The final feature of Trendspider that is great for newbies is the algo that will draw trend lines for you, to help you shorten the trendline learning curve.
There are actually a couple of free charting platforms. Tradingview.com also has a free version which like finviz.com is great when the market is closed. There is also Bigcharts.com which has a premium upgrade to it and StockCharts.com
Day Trading Community
There have been two very positive and supportive trading rooms that I don’t know of any really found to be my home. One of which is you bet free. It is so important as a day trader to be in a community of supportive people as you will make mistakes and when others support you and allow you to get better we all win. That mentality really hit home in the Java Pit Trading Room.
I clicked with Stefanie Kammerman and now we are working together in the Training Pit to which would be similar to trading 101 in trading university. A place for beginner traders to come and learn the proper foundations of trading. Software execution, Charting, and more tips.
The other trading room that is great for people just wanting to get a taste of the stock trading world is hosted by Trade Ideas. Where you can see their software for free ad Barrie the moderator will keep people in check.
Many times I hear people talk about stock chat rooms, but the day trading chat rooms that I don’t know of any been have been more about chatting than trading and unfortuntately not a supportive atmosphere. Bottom line is you will find the room and style that meshes with you. I prefer up beat positive people that yes are human and make errors and take small losses in trading.
Your Trading Platform
It is very important to have a platform that you like. There are many out there depending on where you live. For me as an expat in Canada I only have a handful. I use Interactive brokers remotely on my phone, but find their platform not the easiest. I love the mobile version of Think or Swim.
I don’t know of any heard horror stories from some Americans that are day trading with Robinhood. It is somewhat true to say that you get what you pay for. So make sure that you go with a reputable broker that will not kill your capital with fees.
Arsenal of Tools in Trading
When someone asks me what I use, I always think of my instrument flying experience and trusting my instruments. I need to know that I can rely on all the items I mentioned above. To be honest if one faulters it can distract me from the job of trading. When that happens. I wait until everything is fixed and watch for the next setup. This I just realized does not include my desk setup of hardware it is all software for trading.
Stock Market Indexes Premarket Action
- $SPY – up slightly
- $QQQ – down slightly
- $IWM – up slightly
- $DIA -up slighlty
The stocks have been found by using Trade Ideas stock scanning and alerting software you can see in live action in the always free trading room This is for educational purposes. There is a high degree of risk involved in trading equities, ETFs and options. Past results are not necessarily indicative of future returns. Airplane Jane and Jane Gallina assume no responsibility for your trading and investment results. The indicators, strategies , columns and articles and all other features are for educational purposes only and should not be construed as investment advice. Information for future trades and observations are obtained from sources believed to be reliable, but we do not warrant is completeness or accuracy, or warrant any results from the use of such information. Your use of the trading obsVolatile Stock List 5.17.19ervations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein.