Tools are indispensable in forex trading and are an essential factor that helps improve performance. Online brokers supply traders with advanced instruments and platforms in order to provide them a robust trading environment where they can reach the best results. However, the key is to find the tools that correspond to your particular needs and level of experience. Read below everything you need to know about the top 5 analytical tools for beginner forex traders!
- The Forex Calendar – Stay updated about forthcoming economic data
No matter the strategy you plan to approach, the economic calendar, also known as the forex calendar, is crucial for your trades. This tool helps you stay updated about the forthcoming major economic information, such as the interest rate decisions, non-farm payroll numbers, the Gross Domestic Product (GDP) rates, the Consumer Price Index (CPI), or even private medical insurance rates and government reports. The calendar is automatically updated and covers financial data from all over the world. In Forex, even a small event can cause a small ripple in the market and give you the chance to make a tidy profit!
- The Forex Pip Calculator – Know if the trade is worth the risk
As a beginner, the fear of risking your capital is the biggest factor that can hold you back and interfere with your execution. The ideal thing to do is create a risk management plan and follow it each time you open a trading position. In addition, a very useful tool you can use to monitor the risk per trade is the forex pip calculator. All you have to do is enter your position details, the trade size, and your account currency. The tool will calculate the value of a pip in the currency you want to trade-in and will determine if the trade is worth the risk. If your broker doesn’t provide this tool, you can find it online and use it for free!
- Technical Indicators – Use the price action to your advantage
Forex traders believe that price action is not completely random, but it can actually provide valuable insights. Technical indicators, also known as “technicals”, represent mathematical calculations based on the price, volume, or open interest of an asset. By analyzing statistical trends gathered from price movement and volume, you should be able to recognize favorable trading opportunities. Whether you’re an active trader or not, they can help you analyze short-term price movements and identify entry & exit points. When analyzing the desired currency pair, you can use more technical indicators at once. You can also incorporate them into automated trading systems. The most common technicals are moving averages (MA), the relative strength index (RSI), and the moving average convergence-divergence (MACD).
- The Mirror Trader platform – Trade Forex like a professional
Another valuable tool that could help you profit at the beginning of your trading journey is the Mirror Trader web-based platform. This product was created by Tradency, a renowned financial technology provider, and has a full trading functionality for manual and automated strategies trading. Mirror Trader enables you to use or mirror, as the names suggest, the trading strategies of experienced investors. In other words, the platform records all strategy developers’ “Buy” and “Sell” signals and allows you to view, analyze and automatically execute the signals in your own account. The greatest advantage is that you can pick a strategy that addresses your personal trading preferences, such as risk tolerance and past results. You have more than 3,000 verified algorithmic strategies to choose from, so there’s a solid chance you will find the perfect match for your trading profile.
- The Smart Trading Machine RoboX – A smart trading package only for you
If you have an affinity for innovation, then RoboX is another trading tool created by Tradency and widely used by forex brokers as TradeLTD.com, which you should check out. This trading machine functions based on a unique algorithm that creates smart trading packages that correspond to your personal trading profile. It is an incredible tool to diversify your portfolio in a rapid way and with a minimum of knowledge. Moreover, the packages are updated periodically, automatically, and the algorithm keeps afloat only the most suitable and effective strategies. In order to obtain a bespoke package of strategies, you will have to complete a short questionnaire about your personal trading profile and risk tolerance. It is important to mention that Tradency is just the software and solution provider. Both of its products, Mirror Trader and RoboX are available on the platforms of the third-party brokers they work with.
The Forex trading world has evolved tremendously during the past decade, and the demands are now higher than ever. With a detailed trading plan and the help of the suitable tools designed to enhance your experience – you will be able to successfully face all of these challenges and profit like a professional. Not only will the right tools help you reach your target profits, but they will also ease the trading process and make it enjoyable!