Top 5 FREE Trading Tools for Beginners: 2021
We all know day trading ain’t cheap. From broker commissions, scanner fees, ecn fees, locate fees and membership fees many beginner traders pay to their chat room or DVD gurus so they can turn $500 to 1 million in one year.
What I present to you today are top 5 absolutely FREE tools that all beginner traders should be using. These tools will help you dramatically with technical analysis, screen for stocks to trade, understanding SEC filings, and most importantly, back testing your trading strategies.
Stockcharts.com
So the first tool I love using every single day is stockcharts.com. This is a free website for traders to look up tickers on either the daily or the weekly chart. As you can see the layout is extremely clean and easy to the eyes.
I always start with the daily chart when I'm analyzing a gap up or drawing recent support and resistance levels. Stockcharts.com is a great place for me to start seeing the big picture before even jumping into my Thinkorswim broker.
Every time I’m deciding whether to buy a penny stock overnight, I always check on here to decide if the stock gives me a good chance of gapping up overnight.
Finviz
The second tool I love using is Finviz. I use Finviz as a free source of news I look up to many penny stock runners. On their homepage you can see the condition of the general market sectors like tech, healthcare, and financials. If you’re trading micaps that's very important to note.
Free stock screener
Another amazing feature I love using on Finviz, is their free stock screener. Here you can put in the criteria for the stocks you’re looking for. When I'm looking for penny stocks setting up on the daily I use under 50 mil market cap, relative volume over 1.5, current vol over 100k, and price over $1.
When I get a list of the results, I click the charts on the top section and then I look at the daily chart visually to see if there's a bottom curl break out forming with the potential of breaking out to the upside.
This doesn't just apply to small cap penny stocks, it is the same with the mid cap or large caps as well. I talked about my screening process in great detail in my how to find stocks to trade video if you want to check that out.
You can pay for scanners like trade ideas or equity feed for like $100 bucks a month. I think using this Finviz website allows you to be better prepared outside market hours and you’ll be able to draw out levels from the daily chart and figure out the risk reward beforehand, instead of chasing scanner alerts intraday.
Again, this Finviz screener is FREE.
SEC filings research and Investopedia
The third free resource I want to show you, has been crucial with my SEC filings research, and it's the website Investopedia.
This is where you can find out what is a form S-1, S-3, what is an offering, what is a reverse split stock and whenever I see that there are terms in the SEC filing I do not understand, Investopedia usually has the answer for me here.
This website, investopedia.com, is it. Great website, lots of useful information for both beginner traders and experts and it’s also free.
Stocksplitshistory.com
The next tool I love using is stocksplitshistory.com. As I have mentioned in the past, penny stock companies do a reverse split on their stocks to make their share prices more attractive to investors, and tighten their shares float.
In the recent weeks all the penny stock runners we’ve been seeing such as $CEI, $FCEL, $VISL, $CETX were all recent reverse split stocks. This website allows you to track all the reverse splits.
I'm seeing some former runners here on this list, like $CAPR, and $FRAN. So once I find the reverse splits, I just pop them into the stockcharts.com and look at their daily chart.
If I like them, I'll add those stickers along with my watchlist from my Finviz scan. I literally use all these free tools together on a daily basis.
On demand feature on Thinkorswim
The next tool I want to talk about, has been crucial to my day trading journey. That free tool is the on demand feature on Thinkorswim platform. This tool allows you to go back in time and replay the ticker you want to trade.
So let’s say I want to go back and practice trading on CEI on July 9 mid day. You can come in and select the date and time and voila, you’re back in history. You still get the same buy or sell executions down here. This is where I come in daily and imagine myself making lambo money.
You can basically paper trade the price action and test out your trading strategies and work on your mistakes. You have the option to speed the playback 3x if you want.
This tool is absolutely phenomenal, and it's free to use. if you’re in the US I think you just need to put like $20 bucks in the account. If you’re Canadian, like myself, you need a $5000 US deposit in the account to use this tool. But honestly the deposit is well worth it for me.
If you’re struggling with finding high success rate set ups, your trading entries and exits, definitely go back and practice with Thinkorswim on demand.
But wait, there’s more!
Now here are some bonus FREE resources, you need to be tracking all your trades and keeping your risk management in control. I give out free excel trading journals and a risk control calculator through my email list. So make sure to sign up in the link below if you haven't already.
I have plenty of other free videos on my channel. I made playlists for Reading SEC filings, day trading strategies, broker and chat room reviews. And I go in depth on each topic in the videos.
So if you haven’t done so, make sure to subscribe to my YouTube channel and share this blog with someone you know. These things are completely FREE to do.
