What are the tools you need to have by your side?
Forex trading can be exciting and richly rewarding if you do it rightly. Trading with the right set of tools that are specifically designed for Forex trading will increase your chances of getting an impressive Return on Investment (ROI) for your efforts.
This is because the tools will enhance your performance and let you avoid making some serious trading mistakes that can undermine your success.
This article takes a look at some of the must-have trading tools for both newbie and experienced Forex traders. Take a look at some of them:
1. Calculator
The Forex allows trader to calculate some of the important parameters required for trading. With this tool, you can calculate the contract size, pip value, and swap. You can also use it to calculate the spread, potential profit, and commission. With the calculation, you can gain insight into the potential performance of your trade and the potential profit margin too.
The calculator allows you to calculate up to five trades once. That is time-saving.
2. Analysis Tools
Successful traders don't engage in blind trading. They understand the market before investing their money. Analysis tools are designed to allow traders to analyze the market to help them with their trading decision making.
Some of the most outstanding analysis tools are:
- Forex Volatility Tool: This tool helps you to see the movement of a pair of currency. You may wish to take a look at the average movement of a pair for a couple of days. Thus, you can have an insight into the performance of the pair over a number of days. The analysis result will help you to decide whether a trade will be profitable or not by giving you an idea of the potential value of the price movement.
- Forex Correlation Tool: The knowledge of the correlation between a pair of currency is also a must-have for Forex traders. Some pairs of currency may move together, forming a positive correlation. Sometimes, though, some may move in opposite directions, forming a negative correlation. If you trade in multiple currencies, you will find this piece of information invaluable to your trading success.
Hence, you need these analysis tools and a host of others too.
3. Currency Converter
Currency conversion is one of your daily activities as a trader. You especially do this if you trade in different currencies. Cryptocurrency traders also do a lot of conversion when making payments. They may need to convert from their local currency to the acceptable currency on their trading platform. For instance, you may regularly have to convert from the USD to the GBP or vice versa.
The Currency Converter takes the stress out of conversion. Most trading platforms have it by default. Hence, you use the tool whenever you need it without hassle. The Converter ensures that you get the real-time conversion value of a currency pair at the point of conversion.
4. Trading Signals
According to Investopedia, "a trade signal is a trigger for action, either to buy or sell a security or other asset, generated by analysis." Going through the signals ranks among the most reliable ways to understand the pattern of a trade. You can then decide whether it is worthy of your investment or not.
If you need these tools and many more as a Forex trader, many leading brokers offer them all: trading tools for free along with Analysis and Signal services, which are quite popular and accurate as well.
Make sure your broker gives you access to the top trading tools, which give you a better shot at reaching your dream of making a success of your Forex trading career.
This article was submitted by LegacyFX.
