Some forex trading tools you should know how to use

Some forex trading tools you should know how to use

October 10, 2020 0 By carolc

Undisputedly, the Forex market is the biggest market in the world. With a jaw-breaking $5 trillion daily trade, it outruns the US stock market with wide margins. Forex trading from the start could only be done by banks, multimillionaire companies and businesses. A great deal of money is always needed to be able to partake in this market. Then, it was a market only for the giants.

However, today, technology has paved the way for small businesses and finally individuals to also partake in the forex trading business. With as low as $300, you can also trade and make cool cash in the forex market, if you know the market rules. You can make cool cash everyday as well as lose too. It all depends on several underlying factors.

The first is knowing the forex market very well. The second is getting acquainted with forex tools and making use of them properly, just to mention but a few. There are other important things you should put into serious consideration when trading in the Forex market.

In this article, we’ll be touching Forex tools you can use to trade and make cool cash. Ready, traders? Let’s roll!

1. Technical indicators

Every trader knows that both good and bad tracings are time-based. You don’t just place trades or exit them as you please. If you’re trading to be treading well for you over a period of time everyday, then you necessarily must have and know how to make use of technical indicators.

Technical indicators are forex trading tools that tell when to place, exit or not place trades. They are very vital trading tools you cannot toy with. This is why it’s important you know how to make use of them very well.

All trading platforms come with their technical indicators. They’re always good and enough to let you make market analysis efficiently. However, you can go the extra mile by getting other useful and helpful technical indicators from reputable sites like MQL5.

2. Trading platform

This may not sound very well like a tool, but really, it’s one of the most important forex trading tools. A tool is anything that helps you get things done anyway. Without a trading platform, there’s no way you can trade in the Forex market in the first place. Unless you have a big multimillionaire business or firm, you’ll need to register under a trading firm before you can participate in the Forex market.

What gave small traders leverage and opportunity to come on board are trading platforms. If you take them away, then the forex market will only be for banks and mega companies. But thanks to Forex trading platforms, you can participate in the trading and make cool gains.

There are several trading platforms you can choose. They all will get you started in the Forex world. You should however note that each of them has their good sides as well as their bad sides. All you need do is make your research and choose the platform that clicks well with your taste.

3. VPS (Virtual Private Server)

When your smartphone or laptop is off, both technical indicators and expert advisors’ help will not work. In other words, they’re basically useless unless you have VPS. There are actually more reasons why you should make use of VPS. Making use of this tool will save you from market bumps and unexpected turns. It’ll be a wise and thoughtful investment on your side to make use of this trading tool.

4. Market data

If you are new to forex trading, you’ll most definitely gain help and insights from what traders are saying about the market. However, you need to have access to more than just what people are saying. You need to actually see how they are doing what they are saying. After all seeing is believing. In Forex, seeing how others trade, the method used and the patterns of trading employed can be of immense help for you.

Being decentralized, it can be very difficult to get helpful data on the Forex market. However, you can get helpful financial market information on CFTC.

5. Forex calendar

If you are a fundamental analyst, then you definitely need a Forex calendar in your tool box. You just can’t do without it. Even technical analysts need it to know what’s going on beyond the Forex charts. There are lots going on in the market everyday. You can be overwhelmed with tremendous information. All of this information can’t be of use to you. You just need relevant ones. That is why you need a useful Forex calendar.

You can get one on the FXStreet website. This site shows you all upcoming announcements and has them listed in the order of their importance.

6. Trading Signals

Investopedia defines a trade signal as “a trigger for action, either to buy or sell a security or other asset, generated by analysis.”   Trading signals help you to know whether a trade is worth your investment or not. Trading signals are one of the most efficient ways to reliably understand how market patterns, and how they can be of help to you.

As a Forex trader, you’ll definitely need trading signal tools. You can get these signals from top Forex brokers. Other helpful tools can also be gotten from them. To make things easier, ensure that your broker gives you access to top relevant trading tools that’ll help you actualize your dream of hitting good trades in the Forex market.

7. Calculator

Forex calculator enables traders to calculate some vital parameters that need analysis and accurate calculation for trading. Forex calculator can be used for calculating contract size, pip value and swap. It can also be used for calculating spread, potential profits and commission.

Furthermore, you can also use this tool to gain useful insight that shows clearly the potential performance of your trade and the potential profit margin as well. To save time, you can use the calculator to calculate up to five trades all at once.

Conclusion

Forex trading is a rewarding business meant for anyone that’s patient and knows how to play suit with the market rules. We’ve only touched some important forex trading tools in this article. There are tons of other important tools. Make it a point of duty to get updated with relevant trading tools and make use of them for good trading results and experience.