Trend following is a popular and time-tested approach to the stock market. But until recently, it was inaccessible to the individual investor. In fact, due to the high barriers to entry, trend following trading systems were reserved for institutional investors and very high net worth individuals. But suddenly, all that has started to change.
The increasingly sophisticated online trading tools are helping individual investors and do it yourself traders tilt the odds of success in their favour. That’s because there are now a plethora of online tools, tutorials and resources that you can use to start implementing a trend-following methodology in your own stock or retirement portfolio. Pretty exciting, isn’t it?
How to Get Started with Online Trend Following
Online trend following technology has changed the game for individual investors. But you still need to know where to get started if you’re new to this type of investing. So now, let’s look at some of the most popular technology tools you can use to start trend following.
The first set of tools for trend following traders is stock screeners. These websites allow you to filter and sift through all kinds of different information, to help you find potential investments that are a good fit. This kind of automation is exactly the type of technology that empowers the individual investor and enables them to do more with less.
My favourite stock screening tool for trend following traders is FinViz. That’s because this stock screening software has both fundamental and technical analysis to help give you a well-rounded look at potential investment opportunities. Sounds good, doesn’t it? Well, if you want to learn a little bit more about this great tool for yourself, I’d recommend this article about finding trend following stock picks with Finviz.
The other thing you’ll need as a trend following trader, is a brokerage account. The good news is, nowadays there are plenty of online brokers that allow you to open an account with very small deposits. And in some cases you can even get free trading commissions with new mobile trading solutions. Once again, technology has never made life easier for individual investors and day traders.
Of course, there are still lots of other trend following tools available online. And you could probably spend days on end looking for the perfect technology for your trading system. But for now hopefully this is a good start for you!