| So Many Choices for Investment Software |
| Written by Nicolas Taylor | |
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Before you start looking for investment software, take a few minutes to write down what you want the software to do for you. A little direction will help. There are so many investment software options out there that the selection process isn’t going to be easy. A simple internet search on the term “investment software” will result in an excessive list of selections, making it difficult to know where to start. A good place to begin is by determining exactly what you want to do with the software. What are your needs? The first question you need to answer is…are you looking for something to track current investments, help you make investment choices, or do you want to use the software to issue sell and buy orders? If you write down a few things that you want the software to do, it will give you a place to start. Then as the features are listed and the options grow, you’ll remember why you started looking for software in the first place. In general, investment software can be grouped into three overall categories. There is software available for tracking, trading, and for helping you screen investment choices. Then the field blends a bit and there are programs that allow you to do two of these, or the software will have features that draw from all three categories. Tracking SoftwareIf all you want to do is monitor investments you already have, you are looking for tracking software. Options will vary, but usually tracking software will allow you to follow the progress of a stock or other investment over time. Chart trends, monitor ups and downs and dissect every blip and surge. This type of software is typically passive. You gather data and watch things happen. Some software programs allow you to set alert thresholds. Meaning an updated program will let you know you reached a specific goal. But you can’t use the software to make changes. Nor can you set guidelines for automatic action. If the software package is truly a tracking package and not a blend of elements, it can tell you to act, but you have to pick up the telephone, or send an email to your broker, or log into an account to make any changes.Some of the features of tracking software include customizable options like creating a personal stock ticker. You can usually set the investment tracking software to Auto Update when you log into the internet, setting user-specified intervals. This means that your investments can be updated every minute, every day, or every week. You decide how often you want the information on your stocks and mutual funds. All reported data is computed based on your personal stock purchase price, dates and number of shares. Something to consider with tracking only software—you may already have something on your computer that can be used for this. Quicken, Microsoft Money and other financial programs generally have at least a simple version of stock tracking software that will update stock prices and follow a stock or mutual funds progress. So check what your program can do before you shop for task-specific software. Trading SoftwareTrading software for personal traders is often attached to online trading companies or your personnel broker. One downside to this type of software is that you have to purchase or sell stocks only through the company providing the software. But there are investment trading applications you purchase on your own that will allow you the freedom to trade with several different brokers. This way you utilize the same tools to analyze each investment, yet you aren’t confined to a specific brokerage house or seller.The online trading software options are varied and some are more user friendly than others. There are often automated trading options. This means your sell or buy order will be sent to the company or broker automatically. No human intervention needed. You won’t have to be online or at your computer for your specific orders to be carried out, the order is sent based on target price points you put in place. For instance, if you want to sell a specific stock when it gets to a hundred dollars a share, the online program will issue the sell order as soon as the stock hits that price. Online trading software generally is free if you open an online trading account with a minimum deposit. The minimum deposits vary by company and so does the price for each individual sell or buy order. Screening or Selection SoftwareSelection software allows you to sort data based on abundant criterion. This type of software gives you options for your options, with the ability to dissect possible investments on several levels. This software can be bought, or if you want to play before you pay, some companies have trial offers. I also noticed a few freeware options available. Screening software is data intense. Most packages offer downloads to Excel or spreadsheet programs that allow you to fully analyze the data collected.All investment software features vary, so do a little reading to determine if each package meets your needs. As you look over the options, don’t forget your original list of requirements. Make sure the investment software you choose meets those initial needs. |
