BSE Sensex scaled above 28,000 for the first time ever on 5th November 2014 last week, while the 50-share Nifty also hit a record high in morning trade. Whether you are a expert or a novice trying your hand at the stock market, you can never be enough prepared for how will the market move at any moment. However what you can do is stay up to date on the shares you are dealing with. Here are some tools that might come in handy to do so.
A screener is a tool that can be used to filter stocks based on the metrics you want, be it sector, market cap, stock price and so on. It allows you to add your own ratios and columns to an otherwise crowded and confusing graphs to keep an eye on things that matter to you. And certain websites providing this tool also let you save your customised screener for future use.
If you are exploring the different techniques for investing in the stock market, or if you already do, then you must have come around the analysis strategies called Fundamental analysis and Technical analysis. Technical analysis doesn’t focus on the value of the company, but on the price movements in the market. Charts are used precisely for that.
A chart is a graphical representation of a series of prices in a given time period. It will allow you to plot and study the movements of the price of a stock, so analyse its patterns of change/fluctuations.
Indicators are statistical tools that are used to measure the current market conditions as well as to forecast financial trends. In simple terms, they are your helpers to keep a close eye on your preferred stock.
While there are several indicators available out there, two easy ones to start with are price and volume. If you are looking to get into technical analysis of stocks, over fundamental analysis (i.e when analysis is done on historical and present data, with the goal of making financial forecasts) then you can use indicators to predict changes in stock trends or price patterns.
A watchlist is a dashboard created to maintain a customized list of symbols/stocks on which the investor would like to invest or to analyze the performance and make a decision by selecting it from the drop down box available. It has the parameters such as entry date, today’s range, today’s volume, charts etc.
As the name suggests, algorithmic trading is a system that utilises pre-defined algorithms for making transaction decisions in the financial markets. Algorithmic trading takes out the emotions part out and makes decisions objective.
These pre-programmed trading instructions are designed to determine the optimal time for a transaction to be made that will cause the least amount of impact on a stock’s price. These automated systems allow high volumes of data to be processed automatically and acted upon swiftly and efficiently.
As shown in the image above, Logo Ticker tool shows share price, volume, change and news for stocks you select. The desktop widgets usually provide a window agnostic ticker, to keep you constantly updated no matter what you are doing on your computer. However if you are adding a ticker on your mobile, you can select the positioning depending upon which app you are using.
Online Stock Calculators
In order to take the right decision on which stock to invest in, there are a number of different calculators available online. For instance a Profit-Loss calculator would help you understand the trade’s profit and loss potential before you place it, to see how the results would change based on changes in volatility and time. A probability calculator determines probability of hitting trade targets and so on.
Investopedia is an online encyclopedia for stock trading. From investment basics to the current events in the stock market, you can find it all on this website. It even has a simulator for playing virtually in the share market with virtual money, to practice your skills.
StockTwits is a mobile app that helps the users to share ideas with other traders and investors in real time, view charts and videos, access to market news and financial blogs all in one app. It’s like a social network for stock traders, to get insights, updates, statements and analysis from thousands of other users. It is available for both iOS and Android.
If StockTwits is Twitter for investors, then eToro is a Facebook for them. It is a trading platform and community that offers easy access to trade and invest in currencies, commodities & indices. If you are just starting with trading then you can interact and ask questions with other traders who are more experienced in this field. This too has both iOS and Android versions of its mobile app.
Stock Alerts Tools are offered by several websites including NASDAQ itself, to get updates of the selected stocks directly to your mail inbox. This will save you the trouble of opening the browser again and again to monitor the stocks.There are also some websites like TradersCockpit in India, that allows users to get these alerts directly on their mobile, choose the frequency and time period for getting the alerts in a day.
Yahoo Finance is your destination for all news, updates, and changes in the stock market. The best thing about Yahoo Finance is that you select which market you want to track, and it will show you content and stats for that market itself. Additionally, it also provides tools for portfolio management, online finance quizzes, market analysis etc.
To be good at anything you need knowledge, skill and the tools to be successful and it is no different in stock markets. To know further about investing in stock market and try your hands on more such tools you can explore websites like TradersCockpit which provide powerful and highly customizable tools for every trader and investor, whether newbie or expert.
TradersCockpit.com owned by Gumption Labs Software Solutions Pvt Ltd is a Cloud based Financial Markets Data Analytics Provider that helps investors/traders by providing them with software tools ranging from real-time screeners and charts to complex strategy building and backtesting systems, mining humongous data and thereby assisting them in taking informed decisions.