Using Historical Stock Prices and Real-Time Tick Data for Trading Success

When it comes to making effective decisions on when to buy or sell on the market, knowledge is everything. Using historical stock prices to predict market trends is an excellent way to understand when to buy and sell. Accessing information about past patterns, and using all available real-time tick data, are keys to trading success.

The team at DTN has the robust trading tools you rely on for your success. With both historical and real-time data, our powerful IQFeed gives you the analysis you require. Reach out today to see how our solutions can serve you.

What Are Historical Stock Prices and Real-Time Tick Data?

As the name suggests, historical stock price data looks at past stock values. It does not tell an investor how a particular stock is doing in real-time. Instead, it takes a long view of a stock or market’s behavior and performance over time.

In contrast, real-time tick data shows the current price for buying or selling. It is the stream of information that shows how stocks perform during that day. It will include a timestamp and transaction price for investors and traders to see.

Why Do I Need Both?

New investors sometimes make the mistake of thinking they only need to focus on current prices. Of course, this real-time pricing information is critical for making decisions to buy or sell.

Any investor needs to have these numbers readily available. Especially in volatile markets, current tick data is a crucial tool to have at your disposal.

But historical stock prices are just as vital. If real-time tick data gives you snapshots, historic prices give you an epic film. They allow you to see how a market or company has performed in the past. This information is significant as you make trading and investing decisions.

What Can Traders and Investors Learn from Historical Data?

When you are working to earn money in trading, you want all the information possible to make wise decisions. Although the stock market inherently involves uncertainty and risk, you can gain significant insights before deciding to buy or sell.

Historical stock prices give you two different views to consider. You can look at specific companies, or you can examine whole sectors. For example, you could investigate the trading data on GlaxoSmithKline specifically. Or, you can study the healthcare market in general.

Generally, investors and traders want to look at both of these avenues as they choose where to put their dollars.

Historical Market Trends
Past stock data can show trends and behaviors within a particular market, such as energy, agriculture, or transportation. Investors and traders rely on an analysis of stock prices to show how various sectors fare during different economic conditions.

For example, if there is talk of a possible recession, historical data can indicate industries that have weathered recessions in the past. This insight allows people to make educated decisions about their investments.

Historical Individual Company Trends
Within different markets, there can be hundreds of companies. So after examining the trends of a particular sector, traders also want to know how specific corporations behaved historically. While the past data is not entirely predictive, it does help you to see patterns and cycles.

Where to Find Both Historical and Real-Time Tick Data

Back in the day, trading happened by way of in-person monitoring and phone calls. And most investors got their data from the daily newspaper. Of course, now we have a very different world. Newspapers and landlines alone aren’t going to help you be a successful investor.

Today’s market watchers and players demand much more robust tools. They want insights and data any time of day, no matter where they happen to be.

When choosing a product to support your research and trades, be sure to look for the following features and benefits.

• Long-Ranging Historical Data – You want your feed to include enough information that you can make reasonable decisions. Only having a couple of years’ worth of data doesn’t give you the scope you need for success. Ideally, you will have a platform with decades of historical stock prices.
• Market Breadth Indicators – These numbers show how many stocks are currently advancing compared to those that are declining within an index or exchange. When looking at trading and investing tools, you want something with hundreds of market breadth indicators.
• Real-Time Streaming Data – Without accurate, current tick data, you cannot make timely trading decisions. Be sure you choose a platform with reliable streaming.
• Reliable Streaming News – The market can change quickly if a big story hits the news cycle. Stocks could soar or plummet with one headline. Having up-to-date, relevant news streaming is critical for your decision-making.
• Strong Customer Support – A product worth your time and money will have support behind it. Of course, any software can experience glitches, so make sure there is a team that can help you troubleshoot.

• Compatibility – There are a lot of software applications to meet various needs in the trading world. Make sure any data feed you purchase is compatible with other products you rely on in your work.
• Direct Exchange Data – Beware of feeds that use third-party data. Some companies are simply reselling another party’s information. Look for options that stream to you directly from the exchanges.

The Best of Both Worlds

Using historical stock prices and real-time tick data helps you create a picture of how stock prices could move. Successful traders work with reliable, up-to-date applications to make sure that this picture is as complete as possible.

Information on trends, behaviors, and past market performance gives you a broad view of different sectors over time. And having real-time tick data provides you with the current prices needed for timely decisions. Being able to anticipate trends and hedge against risks are valuable ways to use all of this information.

A successful trading experience relies on knowledge of the past and the present to anticipate the future. Of course, investing in the stock market always carries risk. But with excellent information at hand, you can help mitigate many of your concerns.

DTN IQFeed Has What You Need

IQFeed from DTN is the solution that offers the best results. Our dedicated datacenter provides you fast, reliable streaming of stock quotes and news stories. And our historical data spans decades so that you have all the information needed for your investing and trading decisions.

Connect with a DTN team member today to get started.