An important factor in day trading success is the set of trading tools that a trader uses. Evaluating patterns in trading data allows a trader to time their buying and selling according to precise trading signals. Because computer hardware, software, and the internet are all significantly faster than years ago the best trading tools are now available to the vast majority of traders. The key to success is to pick the most flexible and powerful trading platform for your trading.

Best Tools for Day Trading

Day traders enter and leave positions within a single trading session. Day traders profit from daily fluctuations in value of commodity futures, stocks, or currency pairs. Thus, the best tools for day trading are virtually all technical indicators. The necessary non-technical tool is a news feed that will keep the trader apprised of events that affect trading fundamentals at the same time that the market is reacting to such events. Moving averages, MACD, RSI, and OBV indicators are among the best trading tools no matter what you are trading.

Best Swing Trading Tools

Swing traders work with a longer time frame than day traders. A trade may hold a position for days, weeks, or even months looking for profit driven by market sentiment and underlying fundamentals. The longer one holds positions in commodity futures, stocks, currency pairs or even cryptocurrencies the more important it is to understand the fundamentals that eventually determine prices. The same tools that work for day trading work well for swing trading but time frames for tools like moving averages need to be adjusted accordingly.

Best Stock Trading Tools

Along with a fast and efficient trading platform like Ninja Trader a trader needs a cost-effective, reliable data feed that provides stock, futures, and forex quotes in real time. At DayTradeSafe we highly recommend Kinetick®. Your trading platform needs to provide a news feed and you need to set up a margin account as well. The first trading tool a beginning trader needs is a platform with real historic market data for simulation trading. One of the golden rules for beginning traders is never to risk their own money in real trading until they are routinely showing a profit in simulation trading.

Best Crypto Trading Tools

The best crypto trading tools are ones that work for trading commodities, currency pairs, or stocks. The best match is between day trading and crypto trading because both rely so highly on technical analysis indicators. Day traders, like crypto traders, do not rely very heavily on fundamental analysis. For day traders this is because traders profit from intra-day fluctuations. For crypto trading it is because crypto has no real relationship to fundamentals. Moving averages and the rest work as well in crypto trading as in trading anything else.

Best Tool for Intraday Trading

The best tool for intraday trading will depend to a degree on your trading strategy. As a rule, moving averages are the tool most frequently used for day trading. Others include Bollinger bands to track volatility, the relative strength index for tracking momentum, and a volume indicator helps you see overbought and oversold states. Successful intraday trading depends on the discipline you employ in using the tools for trading that you are using. At DayTradeSafe we teach an exclusive mechanical system using rules-based entry, management, and exit from trades.

Best Chart Tools for Trading

Tick charts are commonly the most useful for placing trades. These charts show you when activity is low and provide detailed information and trade signals in active markets. There are traders who really like and work well with Candlestick charts although to make full use of these chart tools a trader needs to take the time to learn the full arsenal of signals. As with all trading tools the successful trader is one who exercises discipline in their use.

Best AI Trading Tool

There are many automated trading tools. In general, trading robots work well when their programming is able to profit from current market conditions. If automated trading tools offers routine profits nobody would use any other approach. If a trader wants to use these tools the best approach is to learn day trading first and then add a trading robot to the extent that it is useful. In this case start with a trading platform like Ninja Trader and then add to that if you wish.