Forex Tools

Just as a mechanic has a large variety of wrenches, screwdrivers and various and sundry other automotive tools, or a carpenter has several hammers, multiple saws and other construction equipment, a FOREX trader needs specialized trading tools to make the complex task of predicting currency pair prices second nature.

FOREX trading tools run the gamut from simple to complex. As a trader, you will develop favorites that fit your trading strategy and plan better than others, you may tweak some trading tools to make them more effective and you may even come up with something completely new, but you should start with a few basics, experiment on a simulated trading account and take the time to learn how the tools work and how well they meet your requirements.

Here are a few to get you started, along with a brief explanation of the reasons they should be considered for inclusion in your trader’s toolbox.

Glossary of Terms

FOREX trading, like many specialized fields, has its own unique vernacular. A glossary will provide a handy reference to enable you to understand what a broker, advisor or veteran trader is telling you.

Economic Calendar

There are regularly scheduled economic data releases that can have a profound effect on currency prices in a very short time span. Being aware of when these occur will allow you to adapt your trading strategy accordingly. Economic news releases can hand you phenomenal profits or devastating losses in a matter of seconds.

The choice of whether to avoid the market or try to anticipate the result of economic data is entirely a matter of trader discretion.

Common Trader Mistakes

It is frequently said that a fool never learns from his/her mistakes, an intelligent person always learns from his/her mistakes, but a wise person learns from other peoples’ mistakes.

There are millions of traders, but incredibly enough, they seem to make the same foolish mistakes over and over.

Learn what these are, avoid them as much as possible, and you will automatically become a part of the minority of traders that is consistently profitable.

FOREX Training Courses

Just as our mechanic and carpenter from above need to constantly upgrade their skills, a FOREX trader can never stop learning.

The FOREX market is dynamic and constantly changing.

An effective trading strategy will almost invariably become less effective over the course of time.

Staying current with potential adaptations and responses to ever-changing currency markets is the only way to ensure long-term success.

Real-Time Charts and Live Streaming Prices

While simulated prices and historical data have their role in FOREX trading, nothing surpasses live price data displayed on real-time charts for coming as close to possible to actual trading conditions.

These two trading tools are so valuable that nothing less should be considered acceptable.

The one possible exception is if your schedule prohibits you from participating during the most active market times.

In this event, the ability to record a trading session, then replay it at an accelerated speed, makes it possible to condense a trading session of several hours into a much briefer span of time.

This list of FOREX trading tools is not meant to be exhaustive by any stretch.

There are many others to investigate and explore, but these few here will serve throughout what is hopefully your long and productive career as a FOREX trader.

 

Contact Lucror Foreign Exchange at www.lucrorfx.com to learn everything you need about forex tools today!

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