Top Trading Tools For Beginners in Forex Trading

Just like a carpenter without a claw hammer, tape measure, and nail set, it is tough to imagine a blooming trader without forex trading tools.

They all influence the strategy you select and must never be underrated.

We all know forex trading is becoming prominent with every passing day and trillions of tradings are happening every day. It has become a new and profitable trend in the financial market. But still, not everyone can gain success in this field, one must have a good set of knowledge and likewise, a good set of tools to assist them. 

If you’re a beginner, make sure you own the trading tools. Exchanging in the forex market can be fairly tough for novice traders. This is why all forex traders with any status of success need to improve their decision-making abilities by using several FX trading tools. These gadgets can assist traders in facilitating and determining profitable access and exit points.

Speculators without a plan are like a general without a strategy, and therefore without an actionable battle plan. Speculators without a single clear plan can only act and react, act and react, to the slings and arrows of stock market misfortune, until they are defeated.”

– Jesse Livermore

To master forex, you must build a strategy and have your weapons (trading tools) with you. As a beginner, these two things are most important. 

Top Trading Tools  

The top trading tools that we recommend to beginner forex traders are: 

• Financial News-wire

• Time Zone Converters

• Economic Calendar

• Calculators

• Trade Journal

Let’s dive into each of them and tell you their benefits and usage. 

Financial News-wire: No. 1 Trading Tool 

It is your entrance to central economic and financial platforms such as The Wall Street Journal, Bloomberg, and more. With that said, this tool is not just about browsing financial news or ogling through Yellow Pages round the clock. The notion is to keep in touch with the most trusted and recognizable platforms in the place of trading and finance.

The main purpose to employ this specific tool is to be familiar with the international interest rate, which fiddles a significant part in currency valuation. Financial News-wire makes it feasible to trace economic and political circumstances across different nations, monitor present currency prices, and further.

Best Platforms 

The best sources or platforms other than above mentioned are as follows:

• Reuters
• Financial Times
• MarketWatch

While the best practice is to engage their RSS feeds to be informed of the valuable news.

Time Zone Converters: No.2 Trading Tool 

This trading tool is to know the precise and best trading time for a specific asset or stock. Trading hours can render a large difference for a vendor irrespective of his level. 

While major FX headquarters are tracked down in diverse cities such as London, New York, Tokyo, and Sydney) around the globe. What you need to do is to stay coordinated with the round overlaps when exchanging particular currency pairs (for instance, GBP/JPY).

The notion is to realize when trading sessions are functional or shutting down. Apart from benchmark waivers or geopolitical episodes, the tool will be essential even for specialized traders who are hungry to know the precise release time.

This tool can really help you out in knowing the right time to trade a certain currency. So, have it on your list ASAP. 

Economic Calendar: No.3 Trading Tool 

After you have obtained all the fundamental news and trading elements, you need room to save and organize all those chunks of data. This is where the economic calendar may benefit. It carries essential data comprising published outcomes and future market agreements.

Data that you can save 

The notion is to save all the data easily and promptly to access. When we say the word “data”, we imply the following:

• Central bank interest rates
• Major economic releases
• Geopolitical events
• Economic statements and further 

A decent way can be to select a related color for each event counting on the importance. For example, the yellow color is for moderate releases while red is for vital and the most influencing episodes. 

Calculators: No.4 Trading Tool 

From currency exchange and volatility to gains and calculators – progressed online software earns the trading procedure simpler. As a principle, a chosen Forex trader carries most of those tools. If for some purpose, it does not, you may still discover them on various websites empowered free of cost. So, beginners may need:

• A pip calculator – it exhibits the pip value of a selected currency pair you expect to exchange.
• A volatility calculator – it employs historical interest price movement and embraces it to real-life situations allowing traders to regulate the risk. 
• A profit calculator – to assist beginners when interpreting their potential profit or loss in relevance to a particular trading position.
• A margin calculator – it calculates the margin needed along with the proportion and the amount of currency required to maintain the position.

Trade Journal: No.5 Trading Tool 

Forex trading is all about analyzing, searching, reporting, and calculating. A vendor will never be eligible to make out the reasons for losing without thorough reports of all stages made. While the painless way is to learn how to trade from trading professionals yet the most beneficial way is to learn trading from oneself.

To do that, a trade journal can help you. It will let you uphold a history of all exchanges you made. Apart from valuable insights, you will also be apt to collect specific trading patterns and employ them under real-market circumstances.

Of, you will also require a currency converter. You know what it is used for, don’t you? 

Bottom Line 

Successful trading is often a challenge particularly when we talk about continual and profitable activities. However, the described tools are still eligible to put the procedure at comfort stirred with enough acknowledgment and knowledge of the financial market. Try out these tools and become a pro at forex trading!