Automation Tools Every Day Trader Should Be Using

Man typing at computer

Man typing at computer

Day trading offers a wealth of opportunities to generate quick profits. In fact, 58% of traders mentioned the need to make more money in a shorter period as a driving force behind their participation in day trading, according to a survey conducted by Market Cube. If all your trade efforts work out throughout the day, earning money from price changes in assets can be much faster compared with long-term investing. Aside from this upside, day traders avoid the risks of further losses overnight since they’re able to close out investment positions before the market closes every day.

However, day trading can also be a high-risk, high-reward endeavor. A US Securities and Exchange Commission study found that 70% of traders lose their money every quarter. It’s also time-consuming, as you need to spend hours monitoring and researching market trends, tracking and making your trades, and creating the best strategies for trading. Incorporating automation tools is thus essential in helping you earn more profit through fast-paced strategies. That said, here are some automation tools that the everyday trader should be using:


Most day traders who do business prefer to set up a limited liability company (LLC), especially since LLCs can protect your personal assets, preventing you from being liable if your trading activities face financial issues, according to a US News report. Traders can open multiple LLCs, as well as offer their own expertise to other traders through coaching or similar activities. As your business grows, it’s important to automate certain processes through revenue management software, especially if you eventually expand to include services like day trading coaching or seminars that have subscriptions. Using the revenue management software SOFTRAX can help you automate the handling of complex billing and revenue recognition processes by capturing all stages of the billing cycle, helping you accurately manage returns or income. Doing so eliminates the need for manually managing your revenue and income, which can be prone to human error, and allows you to spend more time on strategic ways to increase business profit through your trades, investments, and other activities. 


If you frequently participate in stock trades, this software might benefit day trading. The e-commerce software provider Lightspeed lets you trade options and stocks efficiently through its Hot Keys and Hot Buttons with an option to personalize every aspect of the trading platform by choosing predefined layouts and customizing screens that cater to your functional needs and trading strategies. It also has a market scanner named LightScan, which allows you to check current trading opportunities and stocks that might interest you. Lightspeed also has risk management settings that can help you mitigate and manage day trading risks by providing insights on trade scenarios and risk shock parameters and setting daily maximum loss limits and per-order share size limits to help you mitigate the risks of losing money. 


An Autopilot Trading System can help you avoid the pitfalls of overtrading, which can lead to unwanted profit losses. Our previous article on AutoPilot Settings mentioned the importance of trailing stops in an Autopilot System since these can help you lock in your profits for the day. You can set your Autopilot System for a specific trading time – whether in the morning or afternoon – to help mitigate continuous trading and the risks of losing income. You can also use this to set smart limits and see how many bars the market can move against you before closing a position to prevent a full-stop loss. Using this software and practicing trailing stops can help you protect the profits you earned for the day. 

Although day trading provides opportunities to help you earn money quickly, it also comes with risks. Be sure to check out these automation tools to help streamline your trading process and maximize income. For more tips on trading, check out our other posts on the DayTradeToWin website.

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