While market volatility is poor news for many companies, it is good news for TradeStation Group, Inc. (NASDAQ:TRAD), considering it means heavy trading volume.

TradeStation
is an online brokerage, and when citizens use its services to produce
trades, TRAD earns commissions. Its software is best-in-class and
primarily caters to the savvy investor who buys and sells quickly.
Traders use TRAD’s software to to assess goods and create intricate
strategies, allowing them to automate rules they’ve established. They
next can trade through TRAD’s brokerage arm on a diverse group of
assets, including stocks, options, and futures.

The average user
of TRAD makes more than 500 trades a year. However, as analysts have
pointed out, its growth of new accounts has slowed, main some to
question whether it can continue to be profitable in the years ahead. But
TradeStation’s software is far ahead of its competitors, and it is
proprietary. The traders who use TRAD are sophisticated in their
knowledge of the markets and rely on TradeStation’s advanced software
to help them compose money. I can’t suppose that TRAD is going to lose
customers to other online brokerages. And as the volatility of the

economy shows no sign of calming down, the number of trades we will see
in the short-term by that type of fast trader will remain high, which
will help TradeStation’s profitability in the upcoming year. Its recent
third quarter results showed that trading commissions were up 42% from
final year, same period.

Further, TRAD is financially healthy, with strong cash flow and no
debt. I wouldn’t trade that stock for that of its online trading
competitors!

Type of Stock: An online brokerage that
allows subscribers to use its best-in-class proprietary software to
create rules-based strategies, and manufacture automated trades

Price Target:
Trading at $11.42, that stock isn’t without its risks. But the market
isn’t going to settle down anytime soon, and all of that volatility is
good for TRAD. A recent Goldman Sachs report thinks that is a good
pick, and puts a price target of $13.50 on it. I’m even more confident
– I think we could see that stock rise to $15 in the next 12 months.

Original post by Zac Bissonnette

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