Some investors like a more hands-on approach for managing their money. Others prefer to let experts do the work for them. Many also invest most of their portfolio in products that are professionally-managed, while setting aside a portion of it to make their own investments. 

There are some tools that can help people who’d like to make all, or some, of their investing decisions. As a stock trader, you already know how important it is to take time to research funds and stocks. The question now is, ”How do you choose the best stock research tools for newbies?”

Here are some of the essential features that you should look for when deciding which one you want to use:

1. Offers Real-Time Market Data

It’s important to have the most recent volume, charting pattern, movement, and price information when doing stock research. Having up-to-date information is crucial, especially for frequent traders. That’s because the value of stocks can change at just a second’s notice. That being said, beginner investors should look for tools that offer real-time data on charting and streaming. To obtain the most authentic and accurate experience, it’s also important to look for a research tool that allows you to trade alongside the actual market in real-time if planning to use a dummy account.

2. Enables Comprehensive Fundamental Analysis

When doing stock research, it’s imperative for investors to dig into the numbers. There are two types of analysis that can be done to find out more about market numbers: fundamental analysis and technical analysis. Fundamental analysis involves evaluating a company’s competitive positioning and business performance. It analyzes cash flow, earnings, expenses, and revenues. On the other hand, technical analysis is the process of looking at charts with the goal of detecting tradable patterns.

The problem is that most tools for stock research only focus on the technical aspect. Only very few enable comprehensive fundamental analysis. As a newbie investor, you should opt for the stock research tool that offers an extensive fundamental analysis feature, or one that enables both comprehensive fundamental analysis and technical analysis options. 

Stocks listed on stock exchanges in most developed markets will be required to disclose their financial statements to the public. That’s a good thing since information related to their finances is critical to determining whether or not it’s a worthy investment. It can help you perform fundamental analysis more effectively.

3. Allows Experience And Data Customization

It’s possible to interview five traders, ask them what makes a good stock research tool, and get five completely different answers. That’s because trading strategies drastically vary, and every trader is different. That being said, it’s important to choose a tool that’s customizable. Go for one where you can customize experience and data based on your preferences.

4. Easy Access To News Reports

When you’re deciding when to sell or buy a stock, it can make a big difference if you’re aware of the news that are potentially market-moving. The news could majorly impact the stock price. What if you already did all the research you think is necessary, and here comes a major news report you didn’t know about?  It could surely affect the accuracy of your decision to sell or buy the stock. 

Beginners in stocks investing or trading should pick a research tool with a dedicated, up-to-date news and events link for each listed company. Easy access to news reports is certainly an invaluable resource not only for the newbies, but for experienced investors as well. Also, for you not to miss anything, there should be an option in your chosen stock research tool for customizing a news feed related to the stocks you’re watching on your interface.

5. Boasts A Screener Feature

Filtering through the different opportunities available when it comes to seeking investing ideas can be an arduous task. Fortunately, for modern stock investors, the screener was invented. It’s a tool or feature that helps you find investing candidates quickly at just a button’s click. What the screener does is sort through the stock market to search for matches based on a wide array of characteristics. 

Whether you prefer stocks that generate income payments of a relatively higher level or would rather look for those that have strong growth potential, you can narrow the list of stocks you want to conduct further research on with the help of a screener. Knowing how beneficial a screener feature can be, it only makes sense to look for a stock research tool that boasts such a feature.

6. Offers A Demo Version

If the stock research tool is too hard to use, all the essential features mentioned and discussed above will be useless. The good news is that most major tools for stock research offer a free trial version, allowing you to explore and enjoy their features through a limited test run. It’s essential to know how easy to use a research tool is before investing in its full set of features. If your prospective tool doesn’t offer a demo version, it may be better to look at the other available options.

Conclusion

Stock research tools won’t make someone who’s a beginner in stocks investing a pro overnight. However, it can certainly improve the chances of success in the market. The tips on choosing the best tool you’ve just read in this post should help you get the right one for you.