5 min read · Jun 17, 2019
--
Those who trade on the capital market need to give their full attention to the transactions they carry out because if they are done with greater agility and in less time, these factors become fundamental for trades with better results.
That is why we decided to show you what tools and resources are indispensable to ensure maximum assertiveness with your trades. Keep reading and find out!
Understand the need for resources for your trades
Everyone wants to get out with larger capital and have a positive self-assessment at the end of the day, leaving the trades with a good number of right decisions and having respected all the limits placed when starting to trade.
It is intuitive, if you stop to think about it. Just as with any professional area, we want the best results and to achieve the best performance possible.
The fact is that it is much better to have positive results when we have the best tools and means to reach the target for the day.
That is why to have tools for optimizing the financial transactions is indispensable, whether it be to ensure greater agility or to achieve better results. The question is: which instruments are these?
There are several options available, but you need to be aware of those that facilitate day trade transactions, which are very short term, usually one day, and because of that require more attention.
This is the difference between those who just want to venture into the financial market and those who wish to effectively be successful. To help you be in the second group, we have listed in this article the main tools and resources to help you optimize your trades at all times. Take a look!
Check out the best tools and resources for optimization
There is a big diversity of instruments offered, but some are perfect to optimize your trades and your time on the market.
Simulator
This is an environment that allows traders to work with trading as if they were closing transactions on the stock exchange. The parameters and guidelines are the same, so that is why the investor is able to develop new strategies and get used to the operational tools.
The advantage is to avoid subsequent errors during the actual process itself. It is also a way to understand how the stock market works and learn its ropes such as the asset’s frequency, the corresponding events, when there is more liquidity, etc. As a side benefit, you can learn the role that economic news has on all of this.
Replay
This tool replays previous trading sessions so that the trader can analyze the process from the beginning. The goal is to experience the asset and understand the factors that led to the movement. It is also possible to understand the opening and closing prices of the market and the entire history of the equity during the day.
This replay is done within the platform and the monitoring of the data is done individually. All the tools can be evaluated in this environment and with this the trader understands the dynamics of the asset, identifies relevant events such as payroll, and can test other strategies to see what would be the reaction at that moment.
Performance Report
This report records data related the trader’s performance, which may include:
• Daily balance
• Sum of loss and gain transactions
• Average profit and loss from trades
• Total transactions
• Drawdown — maximum loss, meaning the drop from the top of an asset all the way to the bottom over a given period
• Equity variation, which is the amount available in the trade account
• Successful trades
With this analysis it is possible to identify and correct errors, as well as to know what the correct attitudes were and what can be improved.
Common mistakes made by traders are as follows:
• Not setting a financial loss threshold on the day, which is a criterion that needs to be defined in the strategy.
• Not setting a limit per trade, or a situation of overtrading, which occurs when many transactions are done and may even harm the investor’s psychological and financial health since this attitude creates mental fatigue and excessive costs, which can lead to losing good opportunities.
• Consecutive losses, usually generated by a poor performance for the day. In this case, the trader tends to become anxious, thus harming the other trades.
• Return of a guaranteed gain to the market, which happens when traders earn a certain amount, but continue to constantly trade until their capital is gone.
Notice that all of these errors are caused by the lack of a consolidated trading strategy on the capital market. More than that: these failures show exactly why tools are essential for financial transactions.
Keep in mind that all these tools should be included in a traditional day trader platform because they help to develop the person as a trader, passing along all the details needed to reach trading consistency.
Fundamental Resources for a trader’s day-to-day work
The previous aspects are complemented with these resources that simplify the day trader’s work and help to ensure a positive outcome at the end of the day.
Graphics Plataform
Its use is recommended for putting together a strategy by technical analysis or to follow the price movement of assets. To work correctly, the platform must rely on good technology and a reliable source of data.
The environment can be installed on your computer or be hosted in the cloud.
Mobile Application
This feature facilitates trading when you’re away from your computer. In spite of being more difficult to monitor the stock market and not having all the resources, is a good alternative in unforeseen situations. The best is to have a tool that operates in real time since a delay of 15 minutes can undermine all the work of a day trader.
Analysis and Recommendations
The goal here is to allow the trader to find out what is happening in the market and what the main agents currently think about a company or the economy in general. Caution needs to be taken here, and in this case give priority to independent analyses since those that are linked to banks are not always exempt from bias.
Learn the Importance of Technology in a Trader’s Strategy
The tools for optimizing financial transactions streamline trader development, allowing them to correct mistakes and improve what they were already doing correctly. The result is testing new strategies without putting capital at risk.
It is worth highlighting that traders can also use technology to identify emotional errors. It is possible to build a greater confidence in the operational processes and notice when anxiety makes you click a wrong button, which increases the risks and generates potential losses.
A clear example of this situation is in relation to the payroll indicator. Most beginner traders are unaware of how to send an order or how to behave today. With the replay tool, they are able to evaluate the asset’s volatility. After that, they can access the simulator to understand the appropriate time to operate it. At the end, they can access the performance report to check for errors and right decisions.
All of these tools that optimize financial transactions are guaranteed in Nelogica’s Black Arrow. The data is updated in real time and the trader can monitor and analyze the market with each trade.
Want to know more? Take a look at our website!
