How to Make Money With Day Trading Software – Is it Possible?
The Crescent, Shaughnessy, Vancouver, 2009
Image by Gord McKenna
Shaughnessy is an almost entirely residential neighbourhood in Vancouver, British Columbia, Canada, spanning about 447 hectares in a relatively central locale. It is bordered by 16th Avenue to the north, 41st Avenue to the south, Oak Street to the east, and Arbutus Street/West Boulevard to the west. Recent census estimates place its population at 9020, hailing from 2970 households.
The neighbourhood is characterized by the affluence of its residents: at an average annual household income of 6,252 and family income of 3,895 it is the wealthiest neighbourhood in Vancouver. It is also the site of many historical homes, especially in First Shaughnessy. 51.5% of the neighbourhood’s homes were built before or during World War II, compared with 20.8% for the city at large. This is largely due to the 1981 First Shaughnessy Official Development Plan by-law, which promotes private property ownership and single-family dwelling, while limiting property subdivision and population density.
The neighbourhood was created in 1907 by the Canadian Pacific Railway, then the largest real estate developer in Canada. It was meant as an alternative to the West End, which was the traditional home for the budding city’s elite. Thanks to aggressive marketing by the Railroad, highly regulated development and a stronger degree of exclusiveness, it gradually took the latter’s status over the past century.
— From Wikipedia
Activity: If you’ve never had the occasion to visit Shaughnessy, here’s an activity that lures my wife and I in every time – strolling along the streets to look at the stately mansions. I admit the kids aren’t always thrilled, but the flat streets are perfect for bicycling and scootering. Plus, if you time it right, your kids can collect chestnuts and acorns to their hearts content (there are millions to be had). Ours habitually fight over these nuts as if their life depended on it. And by the time we get home they practically forget to take their bag full of treasures out of the car. Anyway, while the kids are busy fighting over nuts we enjoy “window shopping” and dreaming on.
Age group: All ages
Expense rating: Free
: The gentle maple-lined streets are perfect for those of us who balk at hills. Our two year old manages quite well on his scooter.
: You have to be careful these stunning mansions don’t get to your head. My wife never fails to resurrect our home improvement list while all her ideas are still fresh. Last year she even went to the trouble of creating a job jar. Unfortunately, the job jar somehow got lost. It must have been Coleman.
Details: The Shaughnessy area is bounded in the north by 16th Ave., the south: King Edward, the east: Oak St., and to the west by Arbutus St. A good place to start is Osler St. which runs almost parallel with Oak, one street to the west; and then on to "The Crescent". The Crescent is a circular street with 14 gigantic homes and a beautiful green boulevard park in the middle. From the Crescent move on to Angus Drive, or Balfour Ave. Be careful if you decide to cross Granville as the traffic is heavy on this street.
Season: All seasons
Educational highlights: Shaughnessy is the center of Vancouver’s old money. People who made their fortune in British Columbia’s timber, sugar, mining, and other industries built a neighbourhood of homes to show off their wealth and status.
Fun for the adult?: It’s fun to see how the other half lives. As Nathan puts it, “The only thing stopping us from moving here is winning the lottery.”
Day trading software has made a huge change in how day trading works as a profession. While there have always been tools that make you money in stock trading, from ticker tape with constantly updated stock prices to telegrams and faxes with hot tips, what’s happened since the dawn of the internet is that these techniques have reached more people (and the market has gotten considerably more complex as more financial instruments are devised by mathematicians.)
Day trading software is basically an automated information aggregator. The more sophisticated packages, like the Day trading program, pull in information from several market segments and run it into analysis tools, then compare it to algorithms, where billions of successful trades from highly trained professionals have been programmed in.
These include logical statements for why certain trades happened with certain market triggers, and aggregates of multiple trades to figure out which ones have, in retrospect, the clearest read on the market as a whole.
Since stock trading runs on volatility plays, the ability of the software to match market data to algorithms gives you a theoretical speed advantage; computers can compare data sets much more rapidly and efficiently than humans can. What’s changed is that the computing power to do this has migrated from the server rooms of investment banks and into the desktop computers of average consumers who are just getting started into day trading.
And that’s where the risk lies. While it’s possible to make money doing stock trading, and it’s possible for someone to make a lot of money doing it, it still requires judgment. While this software makes for a good analytical tool, and it will even make recommended picks for buy and sell orders, it’s still using the canned judgment of whatever it was programmed with.
Markets are fundamentally chaotic, and there are going to be market parameters that go out of the boundary conditions programmed into this software. If you don’t recognize what the software is doing, this can be incredibly risky.
We aren’t saying don’t buy the day trading software. Quite the contrary – it’s an excellent analysis tool and a good enough automated trading program, and within the boundaries of what it ‘knows’ and can ‘learn’ from trading patterns, it’s an excellent tool for you to expand your trading repertoire.
That being said, it’s just a tool. It’s not a sure fire winning formula – it will make some bad trades (and you or it will need to figure out why it made those trades). You still have to treat day trading as your job, and can’t look at this program as something that will make you money while you’re out on the golf course.
So, consider it, but make sure you understand the fundamentals of day trading before you put the day trading software to use. Treat it like you’d treat a chainsaw – it’s a useful tool, and you can get a lot done with it, but it’s also going to need awareness and judgment to use soundly.
Old school investing was only the beginning; with stock picking software available, investors are dominating the market without an ounce of sweat.