Many new traders make the beginner mistake of using the wrong tools. Using the right day trading software and day trading tools is critical. While a skilled trader can make do with less than ideal tools, beginner traders need every advantage possible.
That means making sure you’re equipped with the best trading software, scanning software, and charting software.
I often talk about trying to ride a road bike in the sand. It doesn’t matter if you have a $2,000 road bike — you can’t ride a road bike in the sand.
If you ride a $200 used beach bike with fat tires you will have a great time! The guy on the road bike will wonder why you are having a smoother ride.
It’s because you are using the right equipment for the environment. It’s not about how much money you spend, it’s about using the right tools. Make your life easier by using the best tools for you. The ones that I find are best for me are listed below.
Day Trading Software
There are a few different items you will need for day trading including:
- Online Broker
- Scanning Software
- Charting Software
Below we will dig into our favorite day trading software, why we use them and why we think they are crucial for traders to have!
Online Broker: Lightspeed Financial Broker
There are hundreds of brokers you can choose from and they all provide traders with a different experience.
Generally I group brokers into various categories depending on what services they provide or what financial instrument they specialize in. There are options, forex, stocks, long term investing, and scalping brokers.
For active day traders we need a few things, hot keys, direct access routing and fast executions.
For these reasons, I use Lightspeed and consider them the best broker and one of the best tools.
When trading with a $500 trading account and looking for a platform that offers margin, CMEG (Capital Market Elite Group) is an option! They allow unlimited day trading with a $500 min balance (NO PATTERN DAY TRADER RESTRICTIONS)
Stock Scanning Software: Warrior Trading Scanners
Even with a funded brokerage account, traders still need a way to find stocks to trade. Based on my Gap and Go and Momentum trading strategies, there are only a few stocks worth trading on any given day.
Knowing how to identify those stocks before they make the big move is crucial.
I use the Warrior Trading scanners for all my stock scanning. The predefined searches locate HOD movers, volume spikes, biggest gainers/losers, etc.
Charting Software: Warrior Charts
Over the years I’ve used a number of different platforms for charting. I began by using the charts included with my brokers at Ameritrade and then Etrade. However, eventually, I was looking for higher-quality charts. That’s when I began using TC2000. Then, in 2014 or 2015, I switched to eSignal. eSignal is great, but it’s expensive.
When we began developing our own trading software here at Warrior Trading, building in charts was an important consideration. This allowed me to stop using eSignal and instead use our own charts.
Final Thoughts
Having the right tools and day trading software for online trading will point you in the right direction to make better, more informed decisions.
Trading is one of the most competitive careers you can choose so don’t put yourself at a disadvantage or it could come back to haunt you!