To say that trading has exploded in popularity in recent years would be like saying the sun is a *little* bit hot — an understatement for the ages. With the rise of Cryptocurrency, the rapid growth of mobile trading platforms, and two bull market runs in the last 5 years, the barrier to entry for investment has never been lower, and retail traders have been flocking in droves. Now imagine a platform that contains the tools and accessories required to begin your trading journey and create a solid foundation to learn the fundamentals of trading. Well, TradingView is just that! Since its creation in 2011, TradingView has quickly established itself as a household name, becoming the leading web-based market analysis and social trading platform in the world, boasting over 50 million monthly users. But why exactly has TradingView become so popular? Today we’re going to give you a crash course into just how TradingView took the world by storm, and how you can leverage it to take your trading to the next level.
TradingView is a platform that offers traders everything they need to analyze charts and implement technical analysis strategies. As an analysis platform, TradingView is great for beginners because it provides various out-of-the-box chart types, annotations, and charting tools. Traders can create custom indicators and participate in an active social network in order to share ideas and strategies across a global network of investors. Furthermore, the platform offers an extensive news flow that showcases any relevant news related to trading, the economy, and the global market. However, beyond its technical capabilities and analysis functions, what makes Tradingview unique is that it is fundamentally built on the creed of social trading. Social trading involves analyzing financial data by studying the techniques of other traders, comparing them, and then most importantly, building upon those strategies to copy their trades. With the advent of forums like wallstreetbets on Reddit and free trading platforms like Robinhood, investing has radically evolved from brokers on Wall Street moving millions of dollars screaming “sell sell sell!” to retail investors holding real leverage in the market. It’s this facet that has led to the meteoric rise of social trading platforms like Xtrades and TradingView, whose goal is the democratization of investing through knowledge dissemination. By using social trading as its main lever of activation TradingView has paved the way for traders to work together sharing different investment strategies and consolidating age-old investment knowledge into a single hub.
What makes TradingView different from other charting software programs?
For one, it is far more user-friendly and feature-rich compared to other platforms. It is also more affordable than some of the other subscription-based platforms on the market. Unlike other charting software programs, TradingView is a web-based platform, which means traders can access their accounts from practically anywhere with ease. TradingView also offers the ability to create a watchlist of securities that a trader may want to track, use annotations and drawing tools to highlight key areas on charts as well as integrate themselves into trading communities by purchasing premium indicators. Premium indicators are indicator scripts that are paid add-ons for users utilizing TradingView. These indicators are generally rooted in quantitative trading, using computer algorithms and programs based on mathematical models to identify and capitalize on available trading opportunities. Premium indicators on TradingView often come with their own dedicated communities that are focused on helping new members leverage the script as best as they can. Conversely, premium indicators are often expensive and each one comes with its own complex systems and overhead.
How to use TradingView for chart analysis
Now that we understand what makes Tradingview such a powerful tool, let’s dive into practical uses for the platform.
TradingView is typically best leveraged as a platform for technical analysis, a method of evaluating securities by analyzing the statistical trends in market data. Traders can look at critical indicators such as moving averages, Bollinger bands, Fibonacci retracements, and MACD (moving average convergence divergence) to better understand where the market is going and whether buying or selling is worth it.
More importantly, TradingView is a valuable tool for traders of all experience levels. Beginner traders can use it to learn about the markets and develop their trading strategies, while more experienced traders can test out new ideas and indicators to find new trading opportunities. All of these activities are then enabled by the platform to be shared across the web, allowing new traders to glean knowledge from seasoned investors.
However, like almost everything else, TradingView has its flaws. It is not suitable for fundamental analysis, a method of evaluating securities by analyzing the underlying economic and financial factors. It also doesn’t offer any form of automated trading, a feature that is heavily sought out by investors. This aspect is why TradingView is best utilized in tandem with other trading tools and communities and not as a standalone program. Powerful platforms such as Xtrades — another social trading application that focuses on empowering investors through community and education. Xtrades offers the ability for investors to network directly with veteran traders through its mentorship program, many of whom are experts in leveraging fundamental analysis in their trading strategies. Furthermore, the platform provides a plethora of premium TradingView indicators under a single membership umbrella, allowing Xtrades to provide an extremely beneficial symbiotic platform for any users looking to utilize TradingView.
Despite its limitations, TradingView is still a robust platform that when coupled with other social trading tools can help level up almost any investor regardless of experience or acumen. Like a captain steering a ship, you can use TradingView to navigate the turbulent seas of the stock market with confidence — just remember to bring a stocked toolset of platforms with you and you’ll soon be charting a course to financial success.
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