Warren Buffett says:
"We do not have, never have had, and never will have an opinion about where the
Stock Market, interest rates, or business activity will be a year from now"
'Stock Trading Software' doesn't automatically mean charting packages.
In fact, any 'Stock Trading Software' that you may be contemplating should give you both the opportunity for 'Fundamental Analysis' and 'Technical Analysis'.
Furthermore, some software is actually free.
And some of this free software is surprisingly good. But, in general, as with all things, you get what you pay for.
You can pay $1000s for software and even more money on top of that for live feeds.
Or you could pay what I would call a nominal amount for software (about £28 per month) which is web-based with end-of-day data and really gives you all that you need.
And, all you need is the relevant data required for you to make informed decisions. You just need enough charting capability to cover all the basics.
Now, what could we possibly mean by stupidity tax?
We like using 'Stock Trading Software'. But only for viewing information. We then like to make our own informed decisions.
However, some purveyors of "magic" software claim that their programs can predict what's happening next.
But in our experience, there is no software on earth that can predict what's happening next.
Some software programs may come close but they are working on probability. (However, there is one software product that works on Wyckoff's Laws. It is as close as we've found to be able to predict market moves - see Tradeguider).
A word of caution from us: DO NOT BE FOOLED INTO BUYING "PUSHBUTTON" SOFTWARE.
If you do, be prepared to pay an awful lot of "Stupidity Tax."
Software with traffic lights, bells and whistles, and other gizmos, just don't do it for us.
Warren Buffett says: "You want to learn from experience, but you want to learn from other people's experience when you can."
Great words of wisdom.
Bottom line: Don't pay any stupidity tax.
Stick to tried and tested information software.
Textbooks on this question usually come out with the naiive comment: do your due dilligence. Weigh up the pros and cons of the various options available to you.
Yeah right! We've all got time to do that.
We've done all the pro-ing and con-ing for you. Well we really did it for ourselves but we'll share our findings with you.
"Good" software to us means informative and user-friendly.
We can't do with yet another steep learning curve.
O.K. Maybe just a little one. But we like software to be intuitive.
We've reviewed a LOT of 'Stock Trading Software' and there is one that stands (for us) head and shoulders above the rest.
Drum roll, please ...........
'Sharescope' developed by Ionic Software in the UK.
This software does everything you'd want 'Stock Trading Software' to do.
It also has a companion product, 'SharePad' which can be installed on an iPad and other tablets.
Both 'ShareScope' and 'SharePad' have their plus points. Our preference is 'ShareScope' and it is relatively inexpensive.
The software analyzes data and produces stunning graphics.
There are different options depending on whether you want real time share prices or end of day share prices. By now you should realize that we consider end of day data to be good enough. We are not day traders.
Having said that, there is one piece of software that we have used extensively when we were "actively" trading the markets.
This software works on the principles taught by Richard Wyckoff. Read about him and then come back to learn something about the software that is based on his principles.
The name of the software - Tradeguider.
'Keep it simple!
Why complicate matters?
The simplest and less complicated of almost everything is free.
We would be lost without our Sharescope software.
The combination of Sharescope and our Stock Trading Platform is an awesome partnership.
And, if you want to become an active trader, add Tradeguider to your suite.
Master all of them and you will be in the top 5% of Stock Market investors, anywhere.
Do not dismiss software just because it is free.
For example, Bloomberg and Yahoo Finance! are useful. We have 'Yahoo Finance' on our iPhones and it is incredibly informative.
Prices are delayed by about 15 minutes which, when you consider we are only really interested in end-of-day data, is more than acceptable.
'Sharecast' is another useful website.
We're going off at a tangent somewhat. News is good. It's of benefit to keep up with what's happening in the big, big world out there but...
... it's detail. It's noise.
This website is not about trading per se. It's about investing for the long term.
Yes, we need to be able to pick shares. To buy them at the right price and sell them at the right price. i.e. buy when a share is rising, and sell when a share is falling.
But this website is not about trading to make a fast buck. O.K. There may be a few isolated instances, for example, a takeover comes along out of the blue. Yes, you'd take the quick profit in a case like that.
Overall, this website is about 'get rich long'.
If you are of an age that means you'll be pension investing for 40 years plus, then good for you. You could perhaps afford to make the odd "quick trade" along the way. Such a trade would be the exception rather than the norm.
Back to software.
What you need is a package that gives you enough company information in order to make an informed decision, for example, enough information to be able to calculate ratios etc.
And enough charting capability to be able to interpret the trend.
In other words, you need 'Stock Trading Software' that will give you the capabilities to do 'Fundamental Analysis' and 'Technical Analysis'.
'Sharescope' will do that. And more. But you don't really need the 'more'. Unless you want to get serious about trading.
This website is all about getting serious about investing. For the long term.
Sharescope has its rivals.
We'll make this nice and simple.
You do not need any 'fancy' software that has traffic lights, bells and whistles, and the ability to tell you next week's lottery results.
If you want to be a speculator - find another website.
If you like gambling - nip down to your local betting shop.
If you want to invest for your long-term future - stay on this website.
... if you are remotely interested in 'Technical Analysis', then do take a look at some of the sotware packages that are available and will help with your understanding of the subject.
We hope you got the message!
There is no magic bullet out there for investing in the markets. If there was, everybody would be wanting it and everybody would be rich, which is clearly not the case. Nor will it ever be.
What you want out of Stock Trading Software is simplicity, intuitiveness, and ease of use.
We've done it ourselves. We got suckered in to software with bells and whistles. Not only was it a steep learning curve but it acted as a vacuum cleaner on our wallets.
What we've come to realise is that it is the facts that you need. Clear and simple. And facts laid out in graphical form are like an art form.
We love working with numbers, and when those numbers are displayed in a clear format we feel comfortable.
We are long term investors not day traders or some Jesse Livermore type scalpers of the market. We do our research and invest accordigly. No risks. No gambling. Just plain common sense investing.
And it is Stock Trading Software that assists us in our endeavours.
Last words - Sharescope is the "must have" software for your everyday use.
If you want to trade aggressively, then take a look at Tradeguider.
P.S. Tradeguider was invented by the late, great Tom Williams. We got to know Tom very well. Top bloke. His software will help you to see what is really happening in the markets, but we re-iterate, it is for very serious investors.