Although you can perform excellent stock analysis manually, the use of stock analysis tools can make your job so much easier as well as much more efficient.
One of the most effective stock analysis tools whether you are using fundamental or technical analysis is a stock chart. Of all the stock analysis software charting software is amongst the most popular. This popular tool is available from virtually every online stockbroker. Often times it is included for free when you open your account. Your broker may also have more advanced charting software that is available for a nominal fee or available on a complimentary basis should you do a certain amount of trades with them.
Another favorite tool of technical analyst is stock screening software. This tool allows you to set certain criteria and have the software sifts through thousands and thousands of stocks in order to find the stocks that meet that particular criteria. When this type of tool was initially developed virtually all of the criteria that had to be set have to do with technical analysis. Traders could search for such things as 52-week highs or which stocks were above their 200 day moving average. The level of sophistication of stock screening software has grown. There are certain software packages that can perform the same type of screening, but using fundamental data such as price earnings ratio and earnings-per-share. These robust features allow both fundamental and technical analysts to screen stocks more efficiently than was possible in the past.
Another important stock analysis tool on a list would be that which allows you to develop your own trading system. Trading development software typically includes a technical analysis programming library that will allow you to input your own set of trading rules. Once you input your rules into a basic system you can then see how these rules would have traded using past stock market data. The objective here is defined a robust set of rules that will work as well or better in the future as they have on past historical data.
There are stock analysis tools available for virtually any type of stock research you choose to do. If you're a beginning trader you may wish to find tools that are comprehensive enough for you to continue using as your level of trading experience advances.
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