With so many different tools at your disposal, it’s hard not to get distracted by it all.
Whether you are searching google, watching videos on youtube, or just enjoying a little CNBC at night, you are being bombarded with sales of things you most likely don’t need.
It seems like every other ad on Facebook is pointing at some secret line on a chart or a service that touts a proprietary model with a special analysis that no one else has.
A lot of it sounds like the holy grail of trading and when you’re not as profitable as you would like, it sounds that much better.
Don’t make the mistake of using the wrong tools, or wasting money on useless tools that will only distract you from really learning to trade and make money.
My members don’t need to buy a bunch of gimmicks. That’s because they use my simple 5 step system to make profits… and with that, they only need 3 basic tools.
But don’t worry, I’m going to show you the 3 tools that every trader needs to make money, so you don’t have to waste time on things that don’t matter…
Crucial to trading is a good trading platform. This makes it easy to enter and execute orders.
You want the ability to easily and efficiently enter orders without making mistakes… and not just basic market orders
If you want more control over your trading… limit orders and stop orders will be an important part of your strategy.
For more on how and why I use limit orders in my trading check out this post.
Another thing to look for in your platform is built-in stock screeners that can be customized in a number of ways, such as only showing stocks under $10.
I like to have real-time screeners with the biggest percentage movers and high volume increases right in front of me at all times…
But I only want to see the biggest percentage gainers under $10… that narrows in on stocks I am actually interested in trading.
The other important part of a trading platform is the mobile app… Why?
Because with my system, you can easily trade from anywhere. My alerts come out at the same time every day, so you can just open up the app, make your trades and go about your business.
Things have come a long way so it’s not really hard to get a quality platform. You don’t really need to look further than your broker. You can take a look at TD, Schwab, Merrill, or even more customized day-trading trading platforms like TradeStation or interactive brokers…
My personal favorite is Etrade… and I use them as both my broker and my trading platform, but any of the above will most likely have what you are looking for.
#2 Stock Screener/ Scanner
This is a little different than the screener I use within my Etrade platform during the day. What I’m talking about here is an end of day screener with a massive amount of potential parameters to choose from.
There are so many screeners out there that it can be tough to narrow in on what is worth the money, so I am going to give you an option that will make it easy for you. (of course do your own research, depending on your trading needs, it may be different)
Personally, I use a screener that is offered FREE from finviz.com making it an easy choice.
With how simple my trading system is… the free Finviz screener offers everything I need to find the best stocks for my trade setups, and it only takes a few seconds to run the scan.
Here’s a look at what the screener page looks like.
The inputs are at the top of the page and the stocks the scan returned are in a listview underneath. (for more on screening, check out this post)
You can also have the stocks found in the scan show up in a chart view as seen below.
I like to use the chart view because it lets me visually scan through very quickly and pick out the charts that have real potential for a trade.
It only takes me a few seconds to run the scan and another couple minutes to scroll through the charts to narrow in on my trade candidates.
Then I move over to my charting in order to fully analyze the top picks and make the final choices on what to trade.
It should go without saying that you do need access to quality charts. There are many free and paid options. BigCharts, Finviz, yahoo, etc.
This is where I use stockcharts.com. For me, they are easy to use and offer me the visual I prefer. You can, however, use any charts you are comfortable with…
These days many of the trading platforms provide very high-quality charting as well, so if you are already used to the charts in your trading platform that can work great as well.
Just make sure they provide the right overall visual that makes analyzing the trade setups easy.
Here’s an example of the way I use stockcharts.com to analyze a simple trade setup using my 5 step system.
The visual is very clear to me and I am able to find and analyze the patterns I like this very quickly.
In this chart, FCEL broke out of consolidation and closed above the 200-day SMA. Buying the stock on the breakout and holding overnight provided us with a massive move.
Out of FCEL at 1.51 Plus $1,596.12 — David Y.
sold FCEL + $420.00 — Kevin S.
OUT FCEL +27% – Thanks Jeff! — Sebastian D.
Out of FCEL @ 1.58 .. +$1,100 — Tom P.
With just 3 basic tools, you can run my simple 5 step system and profit on trades like the one above. My last challenge ended up over 600% in just 2 months… don’t miss out on my next one.