Essential Trading Tools for Forex trading

Making Forex trading a part of your investment portfolio is a way to broaden your knowledge and spread your risk. In order for you to become the best broker and start making money, you will need to invest some time to perfect your strategy. Doing so should be a fun journey. But what is a journey without a suitcase packed with gadgets, that will help you go in the right direction and make the right decisions. Let’s have a look at some of the tools that might work as a roadmap to your next investment.

Demo Accounts

If you are not completely familiar with Forex trading yet, creating a demo account is essential. You can start making trades immediately without losing any money and get to know the different markets and exchanges at your own pace. It is a great learning tool and is one of the essentials in order to get help from trading tools. You can try out different Forex brokers and find the one that you prefer. When you are ready to start investing, make your first deposit.

Economic Calendar

Using an economic calendar is one of the most important tools when dealing with Forex trades. The calendar will be able to update you on all major news that might affect a currency. Most major economic news sites have one. You can use the one from businessinsider.com. It includes all the major news but also list them in regards of their impact on the national currency. If the impact of the news is major and it differs from the market expectation the currency pair will move more and experience a bigger market volatility on the way.

Forex Time Zone Converter

You should always take into consideration which stock markets that are open when you are dealing with Forex. The largest Market Centers are London, New York and Tokyo. This means that most of the trades around the world will be done, when they are open. This means that the supply and demand will be higher in these periods and create a higher volatility in short-term trading. If you can do your trades when two of the major exchanges are open, you will have the best possibilities to convert your investment in to profit.

Trade Journal

Depending on the number of trades that you make it can be hard to keep track of all your daily trades. Therefore, it can be a good idea to use a trade journal. In the trade journal you should include information about your trades such as the time of when you bought and sold it as well as profits and losses. This will give you an insight in when you make good and bad trades. These patterns might be valuable in order to decide on your next investment.

Copy Successful Traders

If you don’t know how to start or just need a day without trading yourself, you can find tools that will copy other traders. This means that your Forex client will buy the same as an expert and sell it when he or she does. You can track their recent profits and losses in order to decide if they are the right one to follow. The most important thing is of course, that you avoid losing all your money. So always take precautions when investing your hard-earned money.