What Forex Trading Tools Should I Be Using?
The world of forex trading is complex and confusing, with a huge amount of variables involved.
Thankfully, there are several forex trading tools that can make it just that little bit easier.
We’ve put together a list of 5 useful forex tools that will take your FX trading experience to the next level.
These tools will help you stay in control of your trades, generate new trade ideas and execute them efficiently, whilst also monitoring them closely.
1. Top Forex Research
Arguably the first task on your list should be to find yourself a preferred source of useful insights from real experts in the field.
Look for a reliable and certified source that provides helpful educational material, from “how-to” articles to full-blown forex trading strategies.
Surf the web until you find somewhere that gives you everything you need, from technical trading signals to the latest fundamental headlines and how they might impact the markets.
Make sure you are always researching and learning from reliable industry vets so that you are armed with the correct knowledge.
2. Forex Economic Calendar
FX traders tend to think they can make an easy buck in Forex during important news releases and economic report publications.
There are, of course, other (risk-averse) FX traders who stay away from the Forex markets during these times.
Whatever your risk appetite and trading style may be, keeping track of important economic events around the world is an essential part of forex trading.
An economic calendar (or ‘ecocal’) will help you gain powerful insights into the important economic indicators influencing the forex markets, currencies, or assets. And it’s an excellent way to ensure your fundamental FX trading strategy is as prepared as possible to deal with impending volatility.
3. Pivot Point Calculator
A Pivot Point Calculator calculates support and resistance levels by using the last session’s high, low and close.
FX traders use pivot point calculators to assess the market mood or general trend. You can also use them to determine potential breakouts, reversals and trend continuation points.
FX traders often find MT4 indicators that do the calculations automatically for them. The important thing is to get the points drawn on the chart. This will give you a visual representation of how effective pivot points can be. This will help you both build a new trading strategy, and improve your existing one.
4. Pip & Margin Calculators
A pip calculator can help you determine the dollar value for every pip-move. Using this online tool will help you estimate your position size and ensure you trade within your risk parameters.
This forex tool is very easy to use! All you do is select the currency pair you want to trade, punch in the volume in lots and enter the account type. The calculator will then give you the pip value in both your forex account base currency and converted currency.
A margin calculator works similarly, but its main purpose is to calculate the margin required to open an FX trade.
With this tool, you fill in the exact same information as with the pip calculator, then add your account leverage.
5. Position Size Calculator
FX traders usually consider risking a fixed percentage of their forex trading account.
For example, if you spot a good setup to buy EURUSD and you know what your take profit and stop loss levels are, you simply calculate what your lot size would be, provided you have decided what percentage of your balance you would like to risk.
If you spotted a good setup on 1.10 EURUSD, all you would have to do is enter your account balance, risk ratio, and stop-loss in pips. The tool will then calculate the corresponding position size in lots for you!