New Forex traders should know that there are a lot of things that need to be considered when deciding how to trade. The steps involved in learning this market can be overwhelming for new traders, and we must cover all the basics before we start our journey.
While one of the first steps is to download a trading platform, there’s never-ending competition and complexity which can make one start off on the wrong foot and lose money. As part of our mission to help as many people as possible, we created a list of the essential tools you need when you first start.
These tools and resources will save you a lot of time and help you understand and navigate the forex market like an expert.
1. Forex Trading Platforms like MetaTrader 4
There are several online trading platforms available for traders. The most popular and widely used is MetaTrader 4 (MT4), which offers the widest range of features and functionality. It also has an excellent user interface that makes it easy for beginners to navigate their accounts and carry out market analysis.
As it’s one of the best forex trading platforms available, you’ll need to find a reliable forex broker, for example, MTrading.com, and download MetaTrader 4 to get started.
2. A Solid Laptop
The whole point of Forex trading is to make money, so it makes sense that you should use a laptop that can handle the task. You don’t need to buy the most expensive model on the market, but you should get a laptop capable of handling multiple applications simultaneously and having a powerful processor.\
3. Forex Economic Calendar
The calendar overviews what’s happening in different parts of the world and helps you decide when to trade currencies based on news events. It also gives you an idea about what different countries’ central banks might do next month or next year because they impact exchange rates and other financial markets such as stocks or commodities.
4. Forex Time Zone Converter
The Forex Time Zone Converter is a simple tool that will tell you what time it is in another city. It’s useful for knowing when to make trades and determining where to place stops. If you want to trade currencies from different time zones, this tool makes it easy to track how long it’s been since you placed your last trade or position.
5. Trading Journal
If you want to become successful at trading, keeping a record of your trades is essential — especially if you want to learn from your mistakes and improve upon them over time. A trading journal allows you to track key metrics like P/L, average trade size, and win/loss ratio over time to see how those numbers change as your experience increases.
6. The Currency Correlation Tool
The Currency Correlation Tool is one of the most popular tools in our arsenal. It allows you to see how different currencies move relative to one another in any market environment. This is important because when one currency moves higher than another, it often means that some fundamental news affects both equally — like an interest rate hike or an economic report likely to affect both economies equally (or at least similarly).
7. Pip Calculator
A pip calculator is another useful tool for new traders because it shows you exactly how much money is at stake with every trade — and how much money could be made or lost depending on whether your prediction was correct.
It also allows you to see where the price is going before placing a trade, so you know exactly what kind of profit margin there is before making any decisions about whether or not to place a trade at all (or when).
8. Forex Volatility Calculator
When you start trading, one of the most important things to remember is the market’s volatility. The volatility calculator will help you determine how much money your account can afford to lose if you make a trade that goes wrong.
This is especially important when deciding how much leverage to use on your trades and whether or not it’s worth taking the risk. The tool also helps you decide which currency pairs offer better entry and exit opportunities based on historical data about past volatility levels.
9. Broker Spread Comparison Tool
This is another tool that can be used by new forex traders looking for a good broker that can give them competitive spreads and low commissions.
This tool allows users to compare different brokers’ spreads from different currencies with one another and see how each broker compares against the others based on their offering price and volume data from multiple markets around the world, including stocks and commodities as well as currency pairs like EUR/USD, GBP/USD, AUD/USD, NZD/USD, etc.”
10. Capital
Forex trading can be very profitable, but it can also be a very risky business. You need to have enough capital available to trade with. The amount of money you invest in your account will determine how much leverage you have to trade with, affecting the maximum risk level you can take.
For example, if you have $10,000 in your account and want to trade with 10:1 leverage, then each pip (0.0001) movement will cost you $100, and if the market moves up ten pips, your account will gain $1,000 (10 x $100).
Conclusion
It’s important to remember that there is no one right strategy to trade, and it’s always worth experimenting with different approaches. The key is to find what works for you and stick with it. The tools listed above will help you start your Forex trading journey by giving you a solid foundation for making decisions and managing risk. So go forth and conquer.
