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3 Tools Every Forex Trader Must Use

Capital Markets CIO Outlook | Wednesday, April 15, 2020

The inclusion of advanced technology-backed tools can greatly optimize the chances of profits for forex traders.

FREMONT, CA: Powerful features and advanced functionalities are today well within reach of forex traders. As technology makes inroads into the domain of forex trading, advanced tools that can induce intelligence and automation are becoming indispensable. Strategies and profits in trading are thus, subject to the level of investment in technologies. By choosing the right set of forex tools that are suitable for particular styles of trading and money management methods, traders can make big gains easily. Three such forex tools that are indispensable for forex traders today are mentioned in the list below.

• Tools for Visual Representation

Tools and technologies that allow effective visual representation of facts and figures used in trading are vital. Visualization tools, by depicting critical metrics in an easy-to-understand manner, enable traders to analyze data and place trades directly. Since these tools are now able to function in real-time as well, trading can be customized accordingly. The evolution of charting software is improving as more indicators, and trading signals find their way into them. Subsequently, trading decisions improve, helping traders get better returns.

• Social Trading Solutions

One of the most innovative trading technology advancements, social trading or copy trading, has empowered inexperienced traders. With copy trading features, a forex trader can replicate successful trades. When a successful trader, otherwise known as a forex signal provider, does any trade, it automatically gets copied into the user’s account after being customized for risk preferences. Adopting copy trading tools helps amateur traders to trade more confidently.

• Trade Journals and Calculators

Maintaining a trade journal can help forex traders gain valuable insights and prevent mistakes from repeating. With advanced trade journals, traders can effortlessly enter vital details and evaluate profitability. Apart from that, advanced calculators are also indispensable for forex traders. Various types of calculators that can augment trading efforts include currency pip calculators, volatility calculators, margin calculators, and profit calculators.

The market today offers plenty of other tools that can empower forex traders in addition to the basic ones discussed above. Adopting these can help forex traders modernize trading and get guaranteed profits.