We all know that day trading tools are not cheap. Many startup traders pay their chat or DVD gurus through brokerage fees, scanning fees, electronic trading fees, revenue fees, and membership fees to earn between $500 and $1 million in a year.
Today, I am introducing you to the top 5 free tools that all new traders should use. These tools will greatly help you in technical analysis, screening stocks to trade, understanding SEC filings, and, most importantly, backtesting your trading strategies.
Stockcharts.com
So, the first tool I like to use every day is stockcharts.com. This free website for traders allows you to view daily or weekly charts. As you can see, the layout is immaculate and easy on the eyes.
When analyzing a gap or drawing recent support and resistance levels, I always start with the daily chart. Stockcharts.com is a great place to start seeing the big picture before moving on to the Thinkorswim brokerage.
Whenever I buy a cheap stock overnight, I always check here to determine whether the stock gives me a good chance of a sharp breakout overnight.
Finviz
The second tool I like to use is Finviz. I use Finviz as a free data source. I watch a lot of forex traders. On their home page, you can see the state of common market sectors like technology, healthcare, and financials. If you trade mixups, this is very important to know.
Free stock screener
Another great feature of Finviz that I like is the free lab. Here, you can enter the criteria for the stock you are looking for. When I search for penny stocks to make money daily, I use a market under 50 million, a volume sum above 1.5, a current volume above 100k, and a price above $1.
When I get the results list, I click on the charts at the top and then visually look at the daily chart to see if there is a breakout below that could happen.
This applies to not only penny stocks but also mid- and large-cap stocks. I have written a detailed research process on finding stocks to trade video if you want to check it out.
You can pay for scans, such as business ideas or stock feeds, for about $100 per month. I think using this Finviz website will allow you to be better prepared for off-market hours, and you can extract levels from the daily chart and know the risk reward in advance instead of looking for internal scanner alerts.
Again, the Finviz test is FREE.
SEC filings research and Investopedia
The Investopedia website is the third free resource I want to show you, and it is important to my SEC research.
Here, you can learn about an S-1, an S-3, a proposal, and the different stocks. And whenever I see that there are requirements in the SEC filings that I don’t understand, Investopedia often tells me: the answer is here.
That website is investopedia.com. It’s a great site with lots of helpful information for beginners and experts, and it’s free.
Stocksplitshistory.com
The following tool I like to use is stocksplitshistory.com. As I mentioned, penny stock companies do reverse stock splits to make their share price more attractive to investors and reduce the number of outstanding shares.
In recent weeks, all the currency players we have seen, like $CEI, $FCEL, $VISL, and $CETX, have all been recently broken stocks. This site allows you to track all the upcoming splits.
I see some leaders on this list, like $CAPR and $FRAN. So when I get the latest split, I just put it on stockcharts.com and look at their daily chart.
I will add those posts to my watchlist for Finviz scanning if I find any. I use all of these free tools every day.
On-demand feature on thinkorswim
The following tool I want to discuss has significantly impacted my daily business travel. This free tool is an on-demand feature of the Thinkorswim platform. This tool lets you return in time and replay the signal you want to trade.
I want to return and practice trading CEI on July 9th for half a day. You can go in, pick a date and time, and you’re back in history. You still get the same buy or sell here. This is where I come in every day and visualize myself making money on Lambo.
You can paper trade price action, test your trading strategies, and work on your mistakes. You can speed up the replay by 3x if you want.
This tool is entirely free to use. If you are in the US, you must deposit about $20 into your account. If you are a Canadian like me, you must have a $5,000 deposit in your account to use this tool. But honestly, for me, the deposit is worth it.
If you struggle to find high-level strategies to succeed and open and close trades, return and replay Thinkorswim on demand.