If you like day trading stocks manually, meaning without automated software, then there are several features to consider investigating in order to make your life easier. Many online stock trading software packages want to offer you the latest "bells and whistles", but many users do not take advantage of these features to make their lives easier during the trading day. Whether you trade only one stock or have a universe of thousands of stocks, here are some features which can reduce your stress:
Predetermined Risk Control: Some online stock day trading software packages offer the broker the ability to pre-configure risk levels for individual traders. Like a professional athlete who needs a good coach to keep his intensity and energy focused, many traders could use outside support to ensure that they do not break pre-determined risk parameters. If your brokerage firm offers this risk-monitoring feature take full advantage of it! It will force you to pre-determine your rules and discuss them with your broker PRIOR to trading. If you are honest with your broker, and your broker's risk monitoring staff are professional, you will have an edge over many other traders.
The "Bail" (or "Exit All") Key: Many day trading software packages offer "Speed Keys", "Hot Keys", or "Rapid Keys" which is a combination of keystrokes to speed up actions such as your order executions. A "Bail" key (or button) will enable you to exit all positions (based on your preferences) in case something goes wrong during the trading day. If you are long 10 stocks, and all of a sudden some sort of macroeconomic news occurs you may want to get out of all of your positions quickly. The "Bail" key will save you precious seconds during these few times you may need it. The extra speed you have with the Bail key hopefully will save you money or protect your winnings better than if you had to exit each position manually.
Multiple P&L Features. Ideally, if you carry a position overnight you will want to see how it is doing overall and how it is doing for the current market session. This type of position (or portfolio) analysis can assist you in making intelligent decisions in maximizing the use of your intraday capital. Some of the common types of P&L features are Mark-To-Market Analysis, FIFO (or LIFO) Analysis, and Average Cost analysis.
Hopefully these three tools will give you greater reassurance and confidence in your trading regardless of your day trading styles and strategies. In upcoming articles you will find out more about other software features to help you reduce your stress during the trading day.