4 Tools That Will Make You A Better Investor

The following is a guest blog post:

Investing money successfully combines a bit of skill, a bit of education, and the willingness to take a gamble now and again. But no matter what kind of a trader you are, whether it’s amateur or experienced, you want to monitor, learn, and expand upon your investments throughout the day. While you won’t necessary be able to trade at the millisecond level of high-frequency trading, you can make informed decisions to get the most out of your money. Following are four tools to help you become a better investor without stretching yourself thin.

 

Algorithmic Trading

Do you have nascent coding skills? Or, are you interested in learning how to code? Then algorithmic trading is right for you. The website Quantopian helps coders create an algorithm that makes trades faster than you ever could. You can test the algorithm through Quantopian, and if it’s successful enough, you can even earn money.

This type of trading is considered a threat to hedge funds that employ a slower method of trading. Hedge funds tend to be successful, but tend to get bogged down, which can slow growth. You can join the ranks of the algorithmic traders by taking the time to learn how to code an algorithm and tailor it to your targeted trades.

 

Financial Visualization

Imagine if all of the stocks being traded at any given time were laid out in a visual manner. Stocks going up show up in green while ones going down show up in red. You can have all of this on the Finviz.com website. Follow your chosen stocks in real time and make decisions on the fly when something comes in at a price at which you want to trade. Get quick tips as to which stocks are hot and which are not by glancing at the site. Information is laid out in tables and written in shorthand so you can glean the knowledge quickly and make a decision. And, if you’re looking at the site on your older smartphone, consider upgrading to the LG G5 for its high-resolution screen and top-of-the-line processor. Using it on the T-Mobile network for reliability means you’ll get your information fast so you don’t miss one bit of information.

 

At-a-Glance Real-Time Information

Trading platforms come in all shapes and sizes, so you can customize the information you get at any given time. Track the entire market in one screen, follow stocks in another, put up a list of everything you’ve invested in, and more. Platforms let you dial in to the information you want, allowing you to tune out the noise. Focus on what you need to know at the moment, ignore the rest, and make your trades based on what you see on the screen. Make sure the trading platform has plenty of options for customizing the screen and getting the data you want, when you want it.

 

Stock Analysis

It’s almost impossible to trade stocks blindly. You can’t throw a dart at the wall and pick which stock to buy based on that throw. Learning, researching, and understanding how the company operates is key to choosing which stocks to buy, hold, or sell. It’s a lot of work. Or, you can let someone else do the work and read their analysis of the company. Sites like Morningstar examine all of the available data for you, then condense it into a readable article. You’ll find recommendations for what’s a good buy, what company is starting to show signs of weakness, and who’s a good long-term investment. There’s no need to go through all of the financial data of a given company, which means you get to spend more time focusing on what your next trade is based on the information you’ve read.

These four tools are the basic building blocks of trading stocks. There are any number of ways to follow the stock market, make trades, and pull out a profit from your efforts. Ultimately, it comes down to how you want to get the information so you can make a decision.

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