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The Tools I Use For Trading

What is a wood marker without his tools? What is a baker without his tools? What is a trader without his tools?

Without the right tools, a professional is ill-equipped to carry out his work.

I know traders who take tremendous pride in trading just the bare numbers. No scanners, no alerts, no news service, sometimes not even charts.

They feel proud, somehow, to do it all by themselves. I just have to laugh. Imagine a professional baker doing away with all the fancy modern-day tools like ovens and stoves and scales and just lighting a fire at the back of his house and baking bread.

It’s stupid. It makes no sense. There’s no source of pride there.

Tools are developed to make you more efficient and speed things up. I like to use the best of the best when it comes to trading tools and services.

In this post, I will compile all the tools I use. Some of them I use some times and some I use every single day, multiple times. Most of them are paid but they are well worth their price.

TD Ameritrade – My broker for 10 years. They don’t come cheap but their service and execution are unparalleled.

Thinkorswim – TD’s trading platform. Easy, clean and modern.

Trade-Ideas – The best scanner I know. You can program any kind of scanners that you like. It comes with many useful ones pre-built and ready to run.

TraderVue – My journaling service. Easy to set up and record notes on my traders.

FinViz – Free scanner alternative to trade ideas. Good for swing trading. It can find stocks across all international markets.

TrendTraderPRO – My main trading strategy. Simplifies trend following and provides simple entry and exit signals. Works for thinkorswim.

StockTwits – Social network for traders. Useful to see what others think of the stocks you are trading. Be careful not to get carried away with other people’s opinions though.

TrendSpider – Charting platform that can automatically draw very reliable resistance lines for you. I use it sometimes but lately more and more. Maybe I’m getting lazy?

I’ll update this list if I add or remove a tool from my arsenal. Feel free to try any of those tools and see what best suits your trading style. We are all different so just because I like to use something it doesn’t mean that it’s the right thing for you to do.

Trading is a highly personal profession.

– Jacob

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My 3 Rules For Swing Entries

I get asked a lot how I time my entries. Many of you know that I like to trade mid cap stocks and hold for a couple of weeks’ time.

A good entry, for me, is the difference between a trade working out or not. This is it. As the say in the real estate market, LOCATION LOCATION LOCATION.

It’s no different in trading. When you have good location (entry price) then you are pretty much set up for success.

Take a look at the chart below.

We can see NVDA putting in a double bottom on the 18th of August. This is what I mean by good location.

I have been watching NVDA for a long time. It’s a great stock, it has all the right ingredients for a run. I was ready to buy. What was I missing?

LOCATION.

When I like a stock I’m not just going to buy just anywhere. I’m going to be methodical about it.

When you shop for groceries do you just buy the first product you see? Of course not, you look for the best price. There can be ten different types of apples at the grocery store but you want to buy the cheapest one. The best value.

It’s the same with stocks. I want to buy at the best price. I want to get the most value.

So when I look to buy a stock I will wait until it gives me a good price. I’m not going to chase it.

NVDA was expensive, trading at highs around $180. That was too expensive but I still wanted to buy it.

I waited and it put in a double bottom. I bought at $150. That’s $30 a share discount.

I’m still in NVDA by the way. It’s working like a charm.

Lesson here: wait for a good price. Location is king, just like in real estate.

– Jacob