For both beginners and those experienced with Forex trading, making use of the right tools is vital. When it comes to analysing markets and setting the right parameters for the trades that you decide on, the right tools can make all of the difference between making a loss or walking away with a profit. Many online brokers offer a variety of tools for improving the effectiveness and profitability of Forex trading but having a clearer idea of which are the most valuable means being aware of all of the options. If you’re still using guesswork and hope to make your Forex trading profitable, here are the tools that you should be using.
As a trading platform, MetaTrader 4 (or MT4), comes complete with a variety of indispensable tools. Many of these tools are customisable and allow for a much greater scope when it comes to automation and trading signal generation. The real advantage of meta trader is that it comes complete with real-time trading functions that work alongside technical analysis tools and everything that you need for charting. There is even a community of users that have created many increasingly useful add-ons that are proving incredibly useful for Forex traders.
Your Trade Journal
Much of Forex’s success is down to developing insights into your success and those trades that cost you more than you expected. Keeping a trade journal is more vital than ever. Make sure that you have extensive notes regarding your reasons for investing in a trade, as well as the signals that you used so that the trade could be made. Remember to highlight the trades that resulted in higher profit generation. This approach makes it easier to study what you did right and where you went wrong, and whether you use paper and pen, trade journal services, or even Excel, the more data that you collect the better.
There is no end of calculators available that can make it much easier to analyse your potential losses or gains when you decide on a trade. Many brokers have calculators built into their platforms, but always make sure that the calculator that you use comes with:
- Currency pip
- Historical Volatility
- Margin Percentage tools
- Profit calculation forecasts
Currency trading is all about the numbers, so making use of the best calculators should be a natural part of your day. Failing to make use of calculators can expose you to mistakes that can mean a wasted day of trading and a significant loss of your bottom line.
Time Zone Convertors
Currency trading is often a matter of understanding time, and different time zones can have a massive impact on your success as a Forex trader. With overlapping trading sessions of the leading trading centres, you must maintain liquidity by having a more secure awareness of those trading times. Trading volume will be easier to anticipate if you know which trading sessions are currently open, and your profitability will always be influenced by the time zone that you trade-in.
Forex trading is a fast-paced and potentially rewarding career option. Although the risks can be high, the more that you make use of the available tools the more likely that you will minimise your exposure to those risks. Use the latest emerging technologies to ensure that you reduce your risks and have a more positive impact on your overall profits.