Current Information About Retail Brokers
Here are some facts to help understand what you need for stock chart software. First let us clarify, that TechniTrader is reviewing Retail Broker Stock Charts. We are an educational service. We are not a broker, charting software company, or vendor. Our service is strictly educational.
First and foremost, if the charting software your broker provides has 300 studies, how do you know which one is right for you? A “study” is nothing amazing. It is just another term for stock indicators, trading strategies, or trading systems.
You are unique and the worst possible thing you can do when trading stocks, is to use “Crowd Mentality.” Sure, the primordial brain tells us that we should stick with the crowd. However in the stock market following the crowd brings out the predatory trading systems, such as High Frequency Trading HFT algorithms which can trade 6,000 times faster than you can.
Figuring out which Retail Broker study would work for you, means you are going to probably spend a minimum of 300 – 600 hours on this one area alone. Wow, that makes trading hard instead of simple and easy. Sure you could just pick one that many other traders “like” but that does not mean it is right for you, and ask yourself what it is that they like about it?
This is simply too complicated. The broker is trying to please everyone rather than offering you choices that make sense, and provide you with the ability to become a specialist in one area of the market.
No matter whether you are a programmer, engineer, teacher, doctor, or manager the more you specialize in your field then the higher an income you can make. The same is true of trading stocks. When you specialize and hone skills to an expert level, then you will find you do not need 300 studies or a trading system.
Brokers are selling products, and that is their primary revenue base. The minuscule fees they charge for your transactions do not even begin to cover their costs in providing order services to you. So always keep in mind the Broker WANTS you to trade often, too often, because they are selling products such as stocks, options, or whatever instrument you choose to trade. Therefore they buy that product at a much lower price, then they make sure that there are plenty of reasons why you feel compelled to buy what stock they have in inventory either by news feeds, tweets, twits, or flat out “recommendations.”
Sure a few of these recommendations or twits will move up but if this is a great way to trade stocks, why do the majority of Retail Traders lose money regularly? Think about it.
FACT: The Securities and Exchange Commission SEC investigated the top 5 US Retail Brokers, and found that more than 90% of all of the orders their customers placed never made it to any stock exchange. The brokers filled most of their customer orders from the broker’s own inventories.
Retail Broker Stock Charts provided by the broker are touted as “free,” however that is not entirely true. You pay a premium for every service provided and the costs are hidden in wider spreads, paying more for a stock than you should have, and losing money as you exit and sell the stock with slippage occurring on the entry and exit.
Nothing your broker gives you is free. It just seems that way. So when considering a broker, you should review more than “likes” which may or may not be reliable.
TechniTrader reviews and researches such topics as brokers, SEC rulings, and other aspects of brokerage firms for its Students. Reviews by TechniTrader provide our Students with reliable information, so that they can choose the right broker for their needs and be confident that they are in the ones who are in control rather than their broker.
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Trade Wisely,
Martha Stokes CMT
www.TechniTrader.com
Chartered Market Technician
Instructor & Developer of TechniTrader Stock & Option Courses
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Disclaimer: All statements are the opinions of TechniTrader, its instructors and/or employees, and are not to be construed as anything more than an opinion. TechniTrader is not a broker or an investment advisor; it is strictly an educational service. There is risk in trading financial assets and derivatives. Due diligence is required for any investment. It should not be assumed that the methods or techniques presented cannot result in losses. Examples presented are for educational purposes only.