Trading in the stock market can be a daunting and challenging task. However, with more and more people turning to side hustles to earn extra money, some have considered trading. If you’re considering turning to trading as a side hustle or going into it full-time, you’ll be glad to know that there are plenty of tools to make the process easier.
Before you begin trading anything, it’s best to spend some time building up foundational knowledge of the stock market and understanding how it works. There are plenty of videos on YouTube that aim to teach you how to begin trading, but it’s also worth reading up on the news and observing how headlines have an influence on the way the market moves.
Even the most seasoned and experienced traders continue to brush up on their skills as the market moves and changes. Below, we list five of the most valuable tools that serious traders could stand to invest in if they want to do a great job.
1. Trading platforms and charts
Depending on the location of the market you’re trading in, you’ll need to make sure that you have a suitable trading platform and accurate charts to help you read and understand the market better. Yahoo Finance, Trading View, and Google Finance are just some free trading charts you can use as a resource.
If you’re relatively new to trading and haven’t quite figured out which trading platform to use, it’s worth thinking about how you want to go about trading. Will you spend most of your time on your phone or a desktop? If you are doing most of your trading on the go, you might want to pick a smartphone or tablet app that suits your needs. You can always move to more advanced trading platforms as you progress through your trading journey.
2. A VPN
A VPN, or virtual private network, is a great way to protect all financial transactions. With a VPN, all your online activity is anonymized and encrypted, preventing anyone from tracking you. This makes it one of the most essential tools for traders and anyone working in the finance industry.
3. Reliable laptop or desktop
A strong and reliable laptop is the most important hardware device for any serious trader. You’ll want one that’s big enough to let you see watch the charts while being fast enough to perform transactions in the blink of an eye.
4. A trading journal, spreadsheet, or tracker
Having some sort of tracker, journal, or even a simple spreadsheet can help you learn from past trades and trades that didn’t perform exceptionally. Some trading journals, like those from Official TradeSmart Journal and Evernote, are free to download. A trading journal can also help you track how much capital you’re putting out and ensure you’re balancing your finances effectively.
5. Research
Besides researching trading methods, it’s worth looking at social media platforms, news feeds, and other signaling services that could present you with new trading opportunities. Seeing that the news can move the market, it’s worth doing your research before other traders get wind of the headlines before they blow up.
Before you begin trading, it’s worth thinking about the financial risks you’re putting yourself in and learning about some of the issues that have cropped up in the past with new traders.
