Introduction to Day Trading – What Is a Platform
Day Trading
A software programme used for trading securities is called a trading platform. It allows you to open, close and manage positions online. The platform is the software that lets you execute and manage trades.
Platforms are just one part of the overall puzzle you need to solve to be successful at trading.
When you’re getting started, you’re best off concentrating on only one or possibly two different financial instruments. If you want to trade shares, find a share trading platform that specializes in screening and identifying good share trading opportunities.
What should you look for in a trading software system?
Responsiveness
Trading involves making split-second decisions, so the platform should be fast and responsive. If the system lags in executing your order, it can cost you money. It can result in missed opportunities or incorrect trades.
Reliability
Anything can happen in trading. A good trading platform is less likely to have dropped connections, network problems, freezing or execution issues that can interfere with trades.
Markets can experience extreme volatility, particularly during major news events that cause tremendous fluctuations in price in seconds. You need a reliable platform that can process the information and keep you abreast of changing market conditions.
If something does go wrong you want 24/7 access to live support that can get you out of a trade if necessary.
Customisation
You want a system that allows you to position windows and layouts in any way you desire. Every trader has their own preferences to ensure speed and efficiency. Platforms need to be flexible and agile enough to allow traders to design their own setup.
Data Feeds
Every good platform will work with one or more data providers. Data feeds must be fast, reliable, accurate and cost-effective.
Any disruptions in data feed could end in disaster for your trading.
Charting & Indicators
This is the most critical tool for interpreting price action, patterns, set-ups, triggers and signals. Advanced charting is a must.
Seasoned traders rely on basic indicators. A good platform will allow you to modify default settings on indicators to change colours, periods, placement, size, etc. You also want a platform with access to 3rd party libraries of customized and proprietary indicators.
You want to be able to set alerts and triggers. Sitting and watching your computer for hours waiting for a trade to develop drives many people away from trading. Setting alerts to notify you when the market enters your ideal trade set-up saves you endless hours of staring at a screen.
Screening and Discovery
Screening tools help you discover markets that are moving. One market can be flat while another can experience good volatility with numerous trading opportunities.
Screening helps you sift through volumes of data about stocks, futures, and other financial instruments to find markets that are active during your trading hours. This lets you focus your attention and energy on active markets and avoid markets that are flat or going sideways.
Your trading platform is the weapon and shield you use when you go to battle and trade stocks or other financial instruments.
Read Also
Unveiling the Best Indicators for Day Trading: Your Ultimate Guide
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