What trading tools do you use?

[greekfire]

I know there are some savvy investors on this board who are well steeped in the knowledge of economics and investing. I thought I’d see what some of you gurus use as a part of your trading repertoire.

Do you chart results from the Wall Street Journal? Do you subscribe to Yahoo’s online financial features? Or do you use some other sort of specialized program provided by Fidelity, eTrade, Scottrade, or another?

What are the pros/cons of the program/system you use?

Do you have any recommendations?

[asragov]

You might be interested to read (rather informal, chat-room style) software and broker reviews at:

http://www.elitetrader.com/

For the very active trader, most commonly cited there as being good are Interactive Brokers and MB Trading.

Personally, trading tools that have worked very well for me are:

http://www.tradeguider.com/home.asp

and

http://www.advancedget.com/default.asp

Trading actively and successfully requires a huge time investment, luck, and discipline, so there are plenty of drawbacks.

If you are more of a buy and hold investor, Outstanding Investments is one of the top-rated investment newsletters (focused mostly on energy and infrastructure stocks), which, needless to say, has done very well:

http://www.agorafinancial.com/

I also very much like Steve Sjuggerud’s True Wealth newsletter (interesting investments, like Icelandic Bonds and rare coins, in addition to stocks), from the folks at:

http://www.stansberryresearch.com/

Some other interesting sites:

http://seekingalpha.com/

http://articles.moneycentral.msn.com/Commentary/ByAuthor/BillFleckenstein.aspx (contrarian, usually)

I think that the best news magazine is The Economist, which has a foreign (UK) perspective, and includes business and finance news, in addition to having US and regional sections. If you don’t subscribe or buy it at your local bookstore, you can read some of it at: http://www.economist.com

[asragov]

You might be interested to read (rather informal, chat-room style) software and broker reviews at:

http://www.elitetrader.com/

For the very active trader, most commonly cited there as being good are Interactive Brokers and MB Trading.

Personally, trading tools that have worked very well for me are:

http://www.tradeguider.com/home.asp

and

http://www.advancedget.com/default.asp

Trading actively and successfully requires a huge time investment, luck, and discipline, so there are plenty of drawbacks.

If you are more of a buy and hold investor, Outstanding Investments is one of the top-rated investment newsletters (focused mostly on energy and infrastructure stocks), which, needless to say, has done very well:

http://www.agorafinancial.com/

I also very much like Steve Sjuggerud’s True Wealth newsletter (interesting investments, like Icelandic Bonds and rare coins, in addition to stocks), from the folks at:

http://www.stansberryresearch.com/

Some other interesting sites:

http://seekingalpha.com/

http://articles.moneycentral.msn.com/Commentary/ByAuthor/BillFleckenstein.aspx (contrarian, usually)

I think that the best news magazine is The Economist, which has a foreign (UK) perspective, and includes business and finance news, in addition to having US and regional sections. If you don’t subscribe or buy it at your local bookstore, you can read some of it at: http://www.economist.com

[Chris Scoreboard Johnston]

First, I do not try to be a wise guy intentionally, I just wind up on the other side of things most of the time for some reason.

I like to Fade the Wall Street Journal ( do the opposite of the headlines ) just in general. Publications like that are always late to the party and usually a good confirmation that something is about to change in the opposite direction of what they write about.

I use both Tradestation and Genesis software for programming my trading systems. Each has advantages and disadvantages.

Interactive Brokers has the best trading platform by far, and the lowest commission rates, but their customer service is a disaster. Be prepared to speak a foreign language once your 25 minute hold is up, when you call in needing an answer is 30 seconds or less. They will route you to any one of a number of foreign countries. They clipped me for about 25k on a bogus electronic platform failure that they blamed on the exchange, that no other firm had at the same time. Of course this is impossible. I have other friends who have had similar experiences, but they are cheap and I have heard better nowadays. I moved my money out of there after that experience.

Above all, you must do your own research. Any guru will have his or her hot and cold streaks, myself included, so it is always best to make your own decisions. It can be a bit overwhelming, but there are many simple approaches to learn, that do not require huge time commitments. The kitchen sink approach, however does. This is the approach where you arbitrarily weigh the dollar, deficits, fed policy, and 59 other economic variables, and then try to come to a decision as far as what you will do next. No matter how sharp you are, bad decisions will come from that type of approach, or worse decisions that are based on opinions, which leads to alot of second guessing.

Above all, establish parameters for entry and exit points on all investment decisions, before you enter them and ALWAYS FOLLOW THEM. The biggest mistake I see people make, and I have done it myself in my early days, is getting into an investment that immediately goes against the desired direction, and then not knowing when to get out. Emotions take over and before you know it you are short the S&P and down 10% and holding on for dear life. “Well I will just hold on a little longer.” “Damn it, I know I am right.” “What if I get out now and tomorrow the thing skyrockets up?”

These are all comments I hear on the phone from clients and friends all the time. I get out when my rules say to get out, and in when they say to get in. Sometimes I buy the exact high and sell the exact low, who cares. I never get tagged for a huge loss on any one transaction because I follow my rules. I know that over time, keeping emotions and ego out of it will serve me well.

There is always another trade or investment to look at, but there is not always another dollar to place in it. Protect what you have by using discipline not emotion.

[Chris Scoreboard Johnston]

First, I do not try to be a wise guy intentionally, I just wind up on the other side of things most of the time for some reason.

I like to Fade the Wall Street Journal ( do the opposite of the headlines ) just in general. Publications like that are always late to the party and usually a good confirmation that something is about to change in the opposite direction of what they write about.

I use both Tradestation and Genesis software for programming my trading systems. Each has advantages and disadvantages.

Interactive Brokers has the best trading platform by far, and the lowest commission rates, but their customer service is a disaster. Be prepared to speak a foreign language once your 25 minute hold is up, when you call in needing an answer is 30 seconds or less. They will route you to any one of a number of foreign countries. They clipped me for about 25k on a bogus electronic platform failure that they blamed on the exchange, that no other firm had at the same time. Of course this is impossible. I have other friends who have had similar experiences, but they are cheap and I have heard better nowadays. I moved my money out of there after that experience.

Above all, you must do your own research. Any guru will have his or her hot and cold streaks, myself included, so it is always best to make your own decisions. It can be a bit overwhelming, but there are many simple approaches to learn, that do not require huge time commitments. The kitchen sink approach, however does. This is the approach where you arbitrarily weigh the dollar, deficits, fed policy, and 59 other economic variables, and then try to come to a decision as far as what you will do next. No matter how sharp you are, bad decisions will come from that type of approach, or worse decisions that are based on opinions, which leads to alot of second guessing.

Above all, establish parameters for entry and exit points on all investment decisions, before you enter them and ALWAYS FOLLOW THEM. The biggest mistake I see people make, and I have done it myself in my early days, is getting into an investment that immediately goes against the desired direction, and then not knowing when to get out. Emotions take over and before you know it you are short the S&P and down 10% and holding on for dear life. “Well I will just hold on a little longer.” “Damn it, I know I am right.” “What if I get out now and tomorrow the thing skyrockets up?”

These are all comments I hear on the phone from clients and friends all the time. I get out when my rules say to get out, and in when they say to get in. Sometimes I buy the exact high and sell the exact low, who cares. I never get tagged for a huge loss on any one transaction because I follow my rules. I know that over time, keeping emotions and ego out of it will serve me well.

There is always another trade or investment to look at, but there is not always another dollar to place in it. Protect what you have by using discipline not emotion.

[rockysan99]

Buy low, Sell high

Do the opposite as everyone else does. Especially when the media is in a frenzy (see tech bubble 1999, Housing Market 2004-5 and today’s stock market). I avoided the tech crash, sold my house in August 05 and am currently short the market as of May 1st (companies that are likely to get crushed by the housing crash). ABK, MBI, LFG, WHR, BKD, RCL, MGM, etc

[rockysan99]

Buy low, Sell high

Do the opposite as everyone else does. Especially when the media is in a frenzy (see tech bubble 1999, Housing Market 2004-5 and today’s stock market). I avoided the tech crash, sold my house in August 05 and am currently short the market as of May 1st (companies that are likely to get crushed by the housing crash). ABK, MBI, LFG, WHR, BKD, RCL, MGM, etc

[Author]

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