Stock Trading Tools For a Profitable Financial Market Career

Stock trading tools are necessary for the success of a stock trader, an investor and other individuals or entities involved in the financial market business. Learning the techniques of weaving through the stock market is important, but to achieve success, a trader or an investor needs more than just these techniques. He or she should have the tools to cope with the fast-changing, highly developed world of stock trading. In this article, we discussed some of the basic tools that everyone involved in the market should have.

The first thing that a stock trader should do is to learn the ins and outs of the market and know what stock trading is all about. One cannot simply decide to enter the business of stock trading and expect a very profitable future. Learning what the profession is all about requires hard work and diligence. For a person planning to become a stock trader or make an investment, the Internet will be an invaluable tool. Free lessons on how to operate in the stock market can be found in the Internet and a soon-to-be stock trader and investor should take advantage of these free information resources.

And speaking of the Internet, it is a must to have a computer with online connection at all times. Monitoring the stock market and keeping tabs of developments that could affect the condition of the market should be on top of the action list. In this highly technologically-developed world, a computer is something that most people can never do without, particularly if they are involved in the financial markets.

The above tools are the most basic of all requirements. Of course, these two are not enough. There are more; and one of them is the Stock Predictor software. This tool provides investment techniques and helps analyze investment strategies. Stock charts, technical indicators and one-click selling and purchasing of stocks are also among the features of this software.

To keep track of stock movements, a Stock Ticker Application Bar is also important. This tool offers information on stock quotes and indexes and can help traders and investors compare the movement of the stocks. Another important tool is a stock newsletter and publications that offer stock market charts. Newsletters can keep a market practitioner up to date with developments, while charts are needed to monitor the ups and downs of stocks.

Stock trading tools can range from multi-featured software to newsletters to calculators. Or it could be something intangible, like the knowledge of how to cope with movements in the stock market. Whether a person is in it to become a buyer or a seller, a single tool is not enough; success in the market entails a combination of all these tools and other market-related techniques and a bit of luck.

Stock Quotes

A stock quote in the financial market refers to the price at which a security is trading or has recently been traded. That is, the stock quotes are the latest prices at which the shares are bought or sold and the quantities associated with them. It is also called an asset’s quoted price. For example, the highest bid, lowest ask, and the most recent transaction price can be listed in a stock quote. There are basically two types of stock quoting-real-time and delayed. A delayed quote is free of cost in the US. But it reflects the market position 15-20 minutes ago. The range of the last trade or the quantity associated with a bid price is often reported by a stock quote. It is also known as a quotation. In trade, a price series for various quantities may be quoted. From here, we learn about the quantity discount, i.e., quote of a lower unit price for a large amount of quantity.

The most anxious people for the bid and ask quotes are the potential investors or sellers of the stock of a company. This is due to the fact that they are the ones who reflect the prices at which the stock can be bought or sold.

The official timings of the US stock market to remain open for trade are 9:30 AM to 4:00 PM EST, Monday to Friday. The price of the stock at 9:30 AM on an open trading day is known as open price. The trade between the close and open hours is called after hours (i.e., from 4:00 PM to 6:30 PM EST) and pre-market (8:00 AM to 9:30 AM EST) trading. The open price is often affected by the trading during these hours.

An investor must be aware of the common stock quoting terms that are mentioned hereunder:

Prior day’s close: It is the price of a stock at the closing time (4:00 PM EST) of the previous trading day.

High: It is the highest price at which the stock has been traded during the last trading day.

Low: It is the lowest price at which the stock has been traded during the last trading day.

Volume: It refers to the quantity of shares of a stock that have been traded during the last trading day. It is helpful in measuring the liquidity of a traded stock.

Average volume: It refers to the calculation of volume over an extended time period (usually a year).

Capitalization: It refers to the amount in dollars that equals the share price multiplied by the number of outstanding shares.

52-week high: It is the peak price at which the stock has been traded in the last 52 weeks (1 year).

52-week low: It is the lowest price at which the stock has been traded in the last 52 weeks (1 year).

EPS (Earning Per Share): It is calculated by dividing a company’s earnings by the number of outstanding shares.