Software Essentials

Investment software mainly refers to the programs that provide extensive support and guidance to the investors in making the correct investment decisions according to the profile of the investor. The software provides all the right information, charts and minute details for online trading in order to help the investor in every aspect of investment. Investment software is very essential for those investors who do not intend to approach a professional investment company to act on their behalf. The investor can get solutions to any of their investment queries with the help of the various investment softwares.

Uses of Investment Softwares

The investment softwares are extremely efficient and can undertake a large number of tasks. The tasks undertaken by the software include:

1) Providing financial packages: There are investment softwares available for keeping a track of the personal finances of the investor. The software performs the task of collecting all the relevant financial information of the investor especially the details of the bank accounts, credit cards and investment accounts of the individual. The software helps in compilation and systematic documentation of all the relevant financial information of the investor so that it becomes easy for the investor to keep a track of his finances. The programs provide various types of interfaces, which are essential and greatly beneficial in controlling every significant financial facet of the investor.

2) Low-cost or Free Downloads: The programs enable free or extremely low-cost downloads for the investor. Investors can easily download business or investment alerts, stock screeners and several other important downloads.

3) Advanced Softwares: The software industry in renowned for its rapid and constant innovations. The same principle holds true for the investment softwares as well. There are extremely advanced softwares being developed and used in the process of investment. These advanced softwares are essential in performing complex tasks like technical analysis, regression calculations, charting and such other functions. The softwares are updated on a timely basis so that the investor is aware of the recent stocks or share prices and the latest condition of the capital market. It is important that the investor knows about the latest share prices for calculating the investment values accurately.

4) Real Estate Softwares: There are specially designed real estate softwares available for the assistance of real estate investors. The most important area in which the software helps the investor is in choosing the right property for investment. The softwares are equipped to appraise particular properties. Also, on the basis of this appraisal, they guide the investor in taking decisions related to the purchase or sale of the property. The real estate softwares are very important for cash flow analysis, which is of utmost importance for an investor. Some of the major features of real estate softwares are as follows:

Helps in avoiding Over-Paying: With the software, the investor only needs to punch in the market price of the property and ensure that his cash flow is enough to take care of the debt payments. The softwares also help in verifying the tax benefits that the investor would enjoy as a result of depreciation.

Multi-purpose: The real estate softwares is enough to take care of real

estate investments of all kinds, which implies investments in commercial, residential, condominiums, undeveloped land and many other spheres.

Determine the exact value of rent: The software can help the investor in determining the exact rent to be charged. He only needs to punch in the market rate of rent and the expenditure estimate to determine the rent.

Features of Investment Softwares

Investments softwares have a large number of features that make their operations smooth as well as diverse. Some of the significant features of investment softwares are as follows:

1) Technical Analysis: This feature of investment software is extremely essential. This is because it provides a graphical representation of the fluctuations in the share prices over the past few years. Observing these charts help the investor in analyzing the changing trends in the share prices, resistance levels and overlay indicators.

2) Scanning Software: This type of software is very essential for the accurate scanning of all the essentials of the share market. This scanning is done with the help of stock selection criteria. The software also takes the help of financial as well as technical (price and volume analysis) criteria to find stocks.

3) Risk Management Software: One of the most significant and essential features of investment softwares is that of risk management. Through this feature an investor can get the precise idea for allocating money for a particular trade.

4) Portfolio Manager: This feature of the software performs the task of recording or keeping a track of all the transactions, brokerage and dividends. This feature is extremely significant for a thorough analysis of the portfolio of the investor and prepares a report that is key for the accountant while calculating and paying taxes.

Types of Software

There are different types of investment softwares used by investors depending on their profile. The three basic types of investment softwares are as follows:

1) Passive Investor: The passive investor is the one who holds shares for about a maximum of six months and waits only for better returns than a bank interest. There are investment softwares that suit the requirements of the small investor.

2) Active Trader: There are softwares that help traders in purchasing and selling shares in a short time span. Those investors that are involved in share transactions for a period of 1 day to 6-month period. Those who are involved share trading on a fairly regular basis and aim to generate significant income from trading can rely on a specific type of investment software.

3) Day Trader: Those who are involved in share trading on a highly professional basis and aim to make small profits through share trading can get the services of a particular type of investment software.

These are the types of softwares that are essential for various groups of investors.

Investment softwares ensure that investors of all categories can carry on share trading and other investment activities independently and without any professional help. Individuals can carry out investments smoothly through these softwares.