7 best trading tools for 2020 – ForexLive
In this post, we would be taking a
look at the top 7 trading tools you should leverage in 2020. These tools have
been tested and are very accurate when it comes to analyzing the forex market.
Below is a list of the trading
tools we would be talking about much later in the article:
4 and MetaTrader 5
Currency pip, volatility, margin, profit, and currency converter
#1. MetaTrader4 and MetaTrader5
These forex trading platforms
feature several trading tools that you can leverage to develop Expert Advisor
(EA) and also generate trading signals to automate your trading. A reliable
platform to find MetaTrader4 is www.legacyfx.com.
MT4 offers deep technical analysis and real-time functionality, plus robust
charting tools. That’s not all; it has a customizable interface. The user
community is so huge that they have gone ahead to develop several add-ons to
make the platform user-friendly.
#2. Trade Journal
A trading journal is another
powerful tool you need to have in your trading arsenal if you want to be
successful. As a newbie, keeping an accurate record of your trades could be a
nightmare, in addition to taking note of the signals that were used to achieve
continuous profits. This is precisely where a trade journal becomes handy.
Entering your trading strategies in a journal will enable you to know exactly
what mistakes you have made and the steps to correct such errors in the future.
You can make use of a spreadsheet journal, paper journal, as well as a trade
journal service online.
There are several Calculators for
trading forex – volatility calculator, currency pip, profit calculator, and
margin calculator. Let’s take a look at each of these calculators.
Currency Pip Calculator
In forex trading, a pip is the
smallest movement in the exchange rate of a currency pair. Using a pip
calculator, you would be able to determine the pip amount in the local
currency. Usually, the calculator will display the pip value of specific
currency pairs. If you want, you can enter the position amount you prefer.
This calculator makes use of the
historical data of a currency pair to determine the volatility of that currency
in real-time. It can determine the volatility of that currency pair from one
week to as long as one year. In times of high volatility, you can use the
calculator to reduce your position sizes to manage your risk.
In the forex market, a margin is a
percentage required to open and maintain a specific position when trading. A
margin calculator will help you to compute the required margin, currency
amount, and margin percentage needed to hold a spot.
Do you want to determine your
trading position’s profit or loss? Then consider using a profit calculator.
This calculator is very powerful, as it can evaluate both profit and loss at
different levels of the exchange rate.
A currency converter will help you
to compute the value of one currency against another using the prevailing
exchange rate. A currency converter will take an entered amount and convert the
amount to the equivalent of the other money in real-time. This tool is handy,
especially when you want to convert one currency to the other for position
#4. Correlation Matrix
Correlation is the change in the
exchange rate of one currency pair against the difference in the exchange rate
of another currency pair. A set of correlations makes a correlation Matrix.
A correlation matrix is a useful
tool that provides a visual representation of the history of different trading
pairs. It is expressed in correlation coefficient and has a value which ranges
from -1 to +1.
#5. Time Zone Converter
Time zones can be the difference
between your success or failure as a trader. Popular trading centers like New
York, London, Sydney, Tokyo, and others differ in time zones and overlap in
certain times of the day. The difference in time can cause a liquid market for
specific currency pairs. A time zone converter will help you to determine the
time in any of these popular trading centers.
#6. Financial News Wire
The evaluation of currencies takes
into consideration Interest rates and economic numbers. That is why you see
experts’ traders listening to news 24/7. The information they get from news can
mar or make your trading success. Whether you are a day or technical trader,
you need to be aware of economic release times! This is where Financial News
Wire comes in. This tool is quite helpful and should be integrated into your
#7. Economic Calendar
Most expert traders you see,
smiling to the bank, usually plan their trading week using an economic
calendar. This tool lists all central bank Interest rates, major economic
releases, policy statements, speeches by central bank officials, national
elections, etc. that could affect major currency valuation.
There you have it. If you want to
succeed in trading forex in 2020, you need to incorporate these trading tools
into your trading system. And one good platform to get started is www.legacyfx.com.
These tools will enhance your trading strategies, and ultimately, you will
smile to the bank at the end of the day.
This article was submitted
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