Looking for day trading resources to help you out with your day trading? These trading websites deliver some great tools for analyzing trades, finding trades and tracking your trades.
TradingView Provides Quick Research
e (such as candlesticks and Heiken Ashi).
Other features include a stock screener, watch lists, paper trading (to test your strategies or learn) and alerts. A community chat portal also exists for discussing your trading ideas with other traders on TradingView.
StockCharts is Useful for Analysis
StockCharts.com offers a ton of free resources, and you’ll likely find yourself spending a fair bit of time on the site as you explore the high-quality trading articles as well.
The Sector Summary shows which sectors are hot over various time frames. Many day traders like to focus on buying strong stocks in strong sectors in a bull market (rising prices), and short selling weak stocks in weak sectors in a bear market (falling prices). This tool can help you easily find such stocks. Click on the sectors, and then the sub-sectors within to get a list of stocks ranked by performance.
The StockCharts SCTR Report lists large-capitalization stocks from strongest to weakest, so you have a quick list of stocks moving well to the upside or downside at either end of the list.
The DecisionPoint Market Analysis Gallery (DP Chart Gallery) breaks down how the stock market is performing by using various daily charts and technical indicators on different time frames. It’s a quick way to learn about analyzing price actions or grab a snapshot of the market direction and potential turning points.
Normal price charts can be changed to “seasonality charts,” which show how a particular asset performs during different seasons.
Finviz Provides Trading Research
The homepage of Finviz.com offers a host of stocks which are potential day trading candidates. Quickly view the day’s top gainers and losers, see which stocks are breaking out and look at the day’s most volatile stocks.
Use the other pages to dig up more data on stocks, forex pairs or futures. The Newspage provides timely reports and analysis from major news vendors. The Screener tab allows you to find stocks that match your criteria for trading. The Mapoption shows how stocks are performing during the trading day.
Price data is delayed on the free version of the site, which is still useful for research, but as a day trader, you may want more timely information, especially if using the home page for trade ideas. Finviz Elite is the site’s premium subscription tool, which offers real-time quotes, pre-market data, alerts and more.
StockTwits, a Social Media Platform for Traders
If you’re an active trader and want a constant stream of stocks (or other assets) that are moving well or breaking out, then this social media platform is one of the best free resources out there.
Search for day traders on StockTwits, and follow them if they provide timely information on stocks (or other assets) that are moving well for day trading purposes. Utilize your own strategy for trading the assets mentioned. StockTwits is just an idea generator not a trade signal service, or at least it isn’t recommended for that.
StockTwits can be distracting, so while day trading keeps the focus on market research related to your specific trade parameters and market.
For traders starting out, a trading simulator is the best free resource available. While a simulator won’t replicate the emotional ups and downs of making and losing real money, it will let you know if your trading methods are sound or not. Simulations allow you to test your knowledge, strategies, and abilities without risk.
There are many trading simulators available. It might be a good idea to use one offered by a broker you would consider using in real trades. This allows you to become familiar with the broker, their fees, and their platform while developing your trading skills.
Some Final Words on Free Trading Websites
Whether for research or generating trade ideas, these free trading websites offer tools to help in your day trading endeavors. These are resources to help you trade in a more informed manner because ultimately, the more information you have the better you will trade.z
Trade is a basic economic concept involving the buying and selling of goods and services, with compensation paid by a buyer to a seller, or the exchange of goods or services between parties. Trade can take place within an economy between producers and consumers. International trade allows countries to expand markets for both goods and services that otherwise may not have been available to it. It is the reason why an American consumer can pick between a Japanese, German, or American car. As a result of international trade, the market contains greater competition and therefore, more competitive prices, which brings a cheaper product home to the consumer.
In financial markets, trading refers to the buying and selling of securities, such as the purchase of stock on the floor of the New York Stock Exchange (NYSE). For more on this kind of trade, please see the entry on ‘what is an order?’
We can see then that for both countries, the opportunity cost of producing both products is greater than the cost of specializing. More specifically, for each country, the opportunity cost of producing 16 units of both sweaters and wine is 20 units of both products (after trading). Specialization reduces their opportunity cost and therefore maximizes their efficiency in acquiring the goods they need. With the greater supply, the price of each product would decrease, thus giving an advantage to the end consumer as well.
Note that, in the example above, Country B could produce both wine and cotton more efficiently than Country A (less time). This is called an absolute advantage, and Country B may have it because of a higher level of technology. However, according to the international trade theory, even if a country has an absolute advantage over another, it can still benefit from specialization.
The law of comparative advantage is popularly attributed to English political economist David Ricardo and his book “On the Principles of Political Economy and Taxation” in 1817, although it is likely that Ricardo’s mentor James Mill originated the analysis. David Ricardo famously showed how England and Portugal both benefit by specializing and trading according to their comparative advantages. In this case, Portugal was able to make wine at a low cost, while England was able to manufacture cloth cheaply. Ricardo predicted that each country would eventually recognize these facts and stop attempting to make the product that was more costly to generate. Indeed, as time went on, England stopped producing wine, and Portugal stopped manufacturing cloth. Both countries saw that it was to their advantage to stop their efforts at producing these items at home and, instead, to trade with each other to acquire them.
A contemporary example: China’s comparative advantage with the United States is in the form of cheap labor. Chinese workers produce simple consumer goods at a much lower opportunity cost. The United States’ comparative advantage is in specialized, capital-intensive labor. American workers produce sophisticated goods or investment opportunities at lower opportunity costs. Specializing and trading along these lines benefit each.
The theory of comparative advantage helps to explain why protectionism is typically unsuccessful. Adherents to this analytical approach believe that countries engaged in international trade will have already worked toward finding partners with comparative advantages. If a country removes itself from an international trade agreement, if a government imposes tariffs, and so on, it may produce a local benefit in the form of new jobs and industry. However, this is not a long-term solution to a trade problem. Eventually, that country will be at a disadvantage relative to its neighbors: countries that were already better able to produce these items at a lower opportunity cost.
Criticisms of Comparative Advantage
Why doesn’t the world have open trading between countries? When there is free trade, why do some countries remain poor at the expense of others? Perhaps comparative advantage does not work as suggested. There are many reasons this could be the case, but the most influential is something that economists call rent-seeking. Rent-seeking occurs when one group organizes and lobbies the government to protect its interests.
Say, for example, the producers of American shoes understand and agree with the free-trade argument—but they also know that cheaper foreign shoes would negatively impact their narrow interests. Even if laborers would be most productive by switching from making shoes to making computers, nobody in the shoe industry wants to lose his or her job or see profits decrease in the short run.
This desire leads the shoemakers to lobby for, say, special tax breaks for their products and/or extra duties (or even outright bans) on foreign footwear. Appeals to save American jobs and preserve a time-honored American craft abound—even though, in the long run, American laborers would be made relatively less productive and American consumers relatively poorer by such protectionist tactics.
Free Trade Vs. Protectionism
As with other theories, there are opposing views. International trade has two contrasting views regarding the level of control placed on trade: free trade and protectionism. Free trade is the simpler of the two theories: a laissez-faire approach, with no restrictions on trade. The main idea is that supply and demand factors, operating on a global scale, will ensure that production happens efficiently. Therefore, nothing needs to be done to protect or promote trade and growth because market forces will do so automatically.
In contrast, protectionism holds that regulation of international trade is important to ensure that markets function properly. Advocates of this theory believe that market inefficiencies may hamper the benefits of international trade, and they aim to guide the market accordingly. Protectionism exists in many different forms, but the most common are tariffs, subsidies, and quotas. These strategies attempt to correct any inefficiency in the international market.
Currency as a Medium of Exchange Facilitating Trade
Money, which also functions as a unit of account and a store of value, is the most common medium of exchange, providing a variety of methods for fund transfers between buyers and sellers, including cash, ACH transfers, credit cards, and wired funds. Money’s attribute as a store of value also assures that funds received by sellers as payment for goods or services can be used to make purchases of equivalent value in the future.
Cashless trades involving the exchange of goods or services between parties are referred to as barter transactions. While barter is often associated with primitive or undeveloped societies, these transactions are also used by large corporations and individuals as a means of gaining goods in exchange for excess, underutilized or unwanted assets. For example, in the 1970s, PepsiCo Inc. set up a barter agreement with the Russian government to trade cola syrup for Stolichnaya vodka. In 1990, the deal was expanded to $3 billion dollars and included 10 Russian-built ships, which PepsiCo leased or sold in the years following the agreement.
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