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The Basic Day Trading Tools

The Basic Day Trading Tools

Almost all day trading is done electronically these days, which means that it is possible for you to operate your business from anywhere in the world with only a few basic day trading tools.

Computer

Day traders use a wide variety of computers to make their trades and get valuable information.

For example, some traders use a normal computer, one which you would find at any computer shop, while other traders have custom built computers that are designed to respond quicker, store more data, and having the ability to run many programs at once.

In reality, if you are just beginning your day trading journey, then a normal computer will be able to handle everything for you. Basically, you only need it to perform your trades and run certain day trading software programs.

Internet Access

Another important day trading tool is high speed internet access. Most people already have access to this, but if you don’t, then you should contact your internet provider as soon as possible to get it upgraded.

Trying to successfully day trade with a dial-up connection or extremely slow internet access would be a nightmare, and make your day trading business a living hell.

Charting Software

Day traders have a constant need to stay up-to-date with current information and trends. One of the day trading tools that they use to do this is charting software, which usually includes data such as current prices and volume in an easy to understand graphical view.

Once you start day trading on a regular basis then it will become an essential requirement to get charting software of your own. When you sign up with a day trading broker, you normally get access to this kind of software, but sometimes it is not very comprehensive.

Many traders actually invest in many different charting software programs, as they like to get data from multiple sources. Some of the more popular charting software programs available on the market are Esignal, TradeMaven and Sierra Chart.

Before purchasing any day trading charting software, it is highly advisable that you give some programs a trial run. Many of the popular programs offer demo versions, so you can test out the features and decide which one is the best for your current needs.

More About the Different Kinds of Day Trading Charts:

Bar Charts

Day trading bar charts are extremely easy to understand, and have been popular among day traders for many years. The basic information included in a bar chart is the open, high, low, and close prices that have been traded in any set period.

Candlestick Charts

Just like bar charts, candlestick charts have been a popular choice for years, and the data that they give is much the same. Again, you will find the open, high, low and close prices during a set period.

Line Charts

Not as widely used as bar and candlestick charts, line charts are still very useful for interpreting data in day trading. They usually only have one piece of information, which is the close, but when used with certain charting software they can also include the same information as bar and candlestick charts.