Tools of the Trade

Tools of the Trade

August 6, 2018
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There are many tools that help day traders to find intra-day movement in stocks.

Scanners

Scanners are used to find intra-day movement in stocks.  A scanner such as Trade Ideas uses customizable filters to search for stocks for trades that meet a trader’s needs by using price, volume outstanding shares etc.. to narrow down the number of stocks on each scan to watch.  A scanner is programmable and can offer scans for various priced stocks.  Scanners can cost up to $100 and more per month.

 

Learning to Read Charts

Traders should learn to understand charts, especially to understand levels of support and resistance and moving averages.  Traders should also understand candlesticks that appear on their charts; the color of the candle and the type of candle forming.

Stocks have different personalities.  The reading of charts is called technical analysis.  Learning to effectively read a chart comes from hours of watching and analyzing charts.  Technical analysis equals numerical psychology on display.  The chart shows pricing and the human behavior and emotion that are built into the charts.  Learning to understand charts and patterns is just one important element of becoming a trader.