This article will discuss the benefits of free stock trading software and how you can utilize it to do technical analysis and recognize stock price directions. So why go for “free” program? You’ll be delighted to know that you can perform proficient analysis and make predictions on stock prices even with a piece of software that doesn’t come with a price.
There are many available software packages that are free of cost. But the chief intention of this article is not to argue about the merits and demerits of the stock investing software without charge. You should not completely depend on any trading tool, since its main purpose is to help you make competent analysis, but the final move is always contingent to your decisions.
Benefits of Trading Software
You can plot the movement of the stock price chart in different time intervals. When you recognize the lowest level, you always have the “intra-day” chart that is fundamentally an hourly chart movement for a particular trading day. You can normally pursue trading up to ten years using free stock trading software, and in some instances, for the lifetime of the stock. This is very advantageous because it provides you with a time perspective of the stock direction.
For instance, a company has stock with flat or down price for a 3-month chart. However, over a 3-year period the price of the stock may go on a roll or may trend higher. Thus, the time frame factor will permit you to analyze its movement based on time perspective, known as the trading time frame.
The best stock trading software will also allow you to plot the movement of the time against another item or against several items. You can assess a chart of the major banks at the same time to determine which of their stock prices perform remarkably under similar market conditions. Definitely, banks have different financial data and figures. But a stock trading system will help you do a good analysis to be aware of the strength of every bank when compared to each other.
You can as well plot a chart evaluating how the price of a stock has performed compared against an index within the same time frame. This can be very useful because it can tell you how the price is doing in relation to the general market.
Most free software will let you recognize the support and resistance levels of a specific stock price. You will discover the lows and highs of the stock price over a specific period of time. For instance, you can analyze the stock price over a 3-month period and discover the lows as the support points and highs as the resistance points. This permits traders like you to spot what levels usually a stock price needs to reach to break out.
In actual fact, there are many analysis points that you can carry out using free stock trading software. You just have to be diligent in your search so you can make the most out of a free trading system.