Let's talk about the best
trading tools.
What tools do you actually need
for trading?
Which of these tools are the best
ones to trade?
For me, personally,
I use three different tools.
First of all,
you do need a charting
software that helps you to find
the best stocks to trade.
We're going to talk about two different charting software
packages here in a moment.
And the second tool that you need is
your broker platform.
And honestly,
for me, this is all
I need. I don't use
anything else.
You want to stay focused.
So, what are the tools
that I like to use?
Well, you have seen it over
and over here again.
The tool that I like to use
is my software,
the Power X Analyzer.
When trading,
there is three things that you need.
You need to know what stocks to trade,
when to enter,
and you need to know when to exit.
Now, when it comes to exiting,
you need to know when to exit
with a loss, and also,
when exactly you take profits.
You can use a tool like Trading
View. So, here you see Trading View.
This is a tool that I use here to
give you an overall idea of
what the markets are doing.
You see, this what we can use to analyze
the Dow. And yes,
you can use Trading View
to actually plot the three indicators
right underneath.
And this helps you then to see whether
a stock is more likely to go up,
down, or sideways.
Here is my challenge
with Trading View.
The first challenge is that it
is hard for me to read these
indicators.
So, the indicators that I like to use
is the RSI.
It is the Stochastics,
and it is the MACD. And
when you plot them on a chart,
it is sometimes difficult to read.
So, here in this particular example,
right now looking at the Dow Jones,
I want to see that the purple line is above the
orange line.
Here I could enhance
it, and then I get the idea,
or the easier way for
me, is to do it on Power X Analyzer.
So, let's just talk about for example
RYAM. This is one of the stocks that
I bought today,
and you see,
perfect. The RSI is above 50.
It's one of the criteria's that I use.
The Stochastics is above 50.
So, that's perfect.
And then, apparently today,
or yesterday, it was the first day when
we saw the purple line above the
orange line.
For me, it is so much easier
to see this here because this
is where I color my charts.
When all three indicators
are true, I color the charts
green because this means that now,
the stock is more likely to go up.
When I see that
all three indicators are pointing
down, I color the charts red,
which means that it is more likely
for the stock to go down,
and if only two of these three
indicators are true,
this is when I'm plotting a black
bar. By the way,
if you would like to know more about
this in more detail,
please go to mytradingroutine.com.
This is where I explain all of this
in more detail.
Right now, I just want to talk about the tools
that I personally use,
and that I think that you should be using.
Knowing when a stock is more likely
to go up, down, or sideways.
That is a great thing,
and this is what you can do
with any charting software.
The reason why I started programming
my own charting software,
the Power X Analyzer,
is because now
I want to know,
based on all the stocks
that are being traded in the U.S.
because I trade the US markets,
which are the ones that right now
show us a buy
or sell signal?
And this is why I built
in a scanner into the charting
software, the Power X Analyzer,
and this is the scanner that I
then run every day.
Now the scanner shows me two
to eight stocks that I could possibly
trade. And now the question is how
exactly do I decide
what stock do I want to trade?
And this is where I'm looking at the past
performance.
This is something that
the other tools like for example
Trading View.
Let's actually go back to this.
Trading View
or Trade Station
or Think or Swim.
They do not give me the
information that I personally
need for my trading.
Now, for you,
it might be different,
but you see,
for me, I want to know if
I had traded this
stock over the past
year,
using my rules.
Again, the rules you can find at mytradingroutine.com.
It's very easy. It's three indicators.
Nothing complicated there,
but I want to know if I had
traded this stock according to my
rules,
how much money would I have
made over the past year?
And this is where Power X
Analyzer helps me
and shows me... Okay,
if I had a $10,000 position
and I had traded RYAM
over the past year,
using the rules of the Power X Strategy,
I would have made $7,864.
So,
based on a $10,000 position,
that's 78.6%
return on investment within
a year. How do you like this?
That's pretty good,
right? It also shows me that I would
have had 12 wins
and 7 losses.
Meaning that my winning percentage is 63%.
So, out of 10 trades,
I can expect 6 trades
to be winning trades.
These numbers give me confidence
in this trade to actually place
the trade. It also shows me that my
profit factor is
3.7. What does this mean?
It means that over the past
year, if you had traded
this stock, RYAM, using
the Power X Strategy, it means
that for every dollar that you lost,
you would have made $3.70.
These are the three
really important numbers
that I need to know before
I am placing a trade.
In summary,
what are the best tools?
Well, the best tool is
a tool that helps you to
stick to your trading
strategy.
And this is why I programmed Power X
Analyzer to make sure that it
shows me exactly what to do.
You need a charting software anyhow
and trust me, I did try
to use the free
or inexpensive charting software packages
that are out there,
and they just couldn't do
what I want Power X Analyzer
to do. Which is tell me exactly
what stock to trade.
Tell me exactly what to do,
when to enter,
when to exit.
How many shares to trade.
And then...
And this is most important for me,
tell me exactly
what would have happened over
the past year if I had traded
the stock according to my
criteria because this
gives me the confidence
to place the trade.
The only other software that you then need
is your trading platform,
and in another video,
I talked about the best brokers
for 2019.
The good news is your broker gives
you the trading platform for free.
So,
that's it. I don't use any
other trading tools.
These are the only
three that I use,
and Trading View I mainly
used for teaching here,
when I'm teaching live at my boot camps.
By the way, if you would like to come to one
of our boot camps,
and they are free,
on this website boot.camp.rockwelltrading.com.
You will find all of the upcoming dates.
So, the next dates are in Houston.
We just were in Orange
County and California.
We'll go back to the L.A. area at some
point and we'll also come back to Florida.
You'll find all of this at bootcamp.rockwelltrading.com.
OK. Hope this helps that now
you know what tools I personally
use, and that this helps you
to find the tools that you
would like to use. By the way,
what tools are you using?
Leave it in the comments here.
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