Forex Tool – What you need before you start trading
All the information available can be overwhelming. The truth is, there is a long list of tools, but you need a handful of things to help you get started. We have put together a list of suggestions.
Good laptop and smartphone with a stable internet connection
I am surprised at the prices of laptops ‘recommended’ for Forex traders. Look into a quality laptop with a decent amount of RAM, but you do not need to break the bank to get one. You will most likely use your phone to view the markets and place trades when you start.
Once you are ready to buy or upgrade your laptop look into the following features:
- 16 Gig Ram or higher
- Screen size – the bigger the screen, the easier to analyse the markets and spot entry points (We recommend 15′ – 17′)
- Battery Life – Depending on your trading style, you need to be ready to take a trade at any time. In this way, you can check trades on the go. With smartphones today, this is not such a big need as long as you choose a trading platform that is compatible with your cellphone.
Forex trading is a game of mind and emotions. Keep track of your wins and losses as it serves a place to note your mistakes and lessons. It is also a place to enjoy your successes and note what works.
You are always learning as the forex market is alive. For this reason, tracking your trades and making notes for yourself is vital for traders at any level.
Whether you take screenshots of your trades and entries or choose to write down your entries, TP and SL; you must have something to refer to and keep track.
It is a good idea to keep an eye on the economic activity of currencies you are trading, regardless of your trading style. We recommend the below sites to form part of your screen time:
There are other news feeds available, but they come at a price. These are free options that come with a decent overview of the news and events that may affect the markets. Most of these sites have apps available at Playstore or iStore; to assist in tracking and monitoring market movements.
Surrounding yourself with like-minded individuals is crucial for success in any business. Find a place for inspiration and to talk through issues that you may have.
There are many options out there and finding the right fit can take a few tries but is well worth it. Keep in mind that the paid groups do not offer the best content. Look around before you commit.
Reliable and regulated broker
Take an extra minute before deciding on the home for your money and trades. Ensure that you choose a regulated and read some reviews before making any deposits.
Regulated brokers are monitored by a Financial body, in their specific country, to ensure that they stick to the rules set out by the body. They stay honest, and your funds are protected.
Customisable trading platform
Regardless of your trading style, you will use some visual aids to assist you in your analysis. Ensure that the platform that you choose is customisable and user friendly.
Again we stress, the paid options are not always the best. At first, you can use the free versions with great success. We recommend Meta4/Meta5 Trader, an easy to use a free platform. Also, check out TradingView for mobile trading for on the go analysis.
Funded trading account ($50 – $100)
We highly recommend that all strategies are tested on a demo account BEFORE you go live. To assist in building confidence and experience in a risk-free zone.
Keep in mind that the aim is to make money. Start small if you need to, you can build any account into a substantial sum with risk management, screen time and patience.
TIP: Check the exchange rate before depositing to take advantage of the lowest exchange rate before depositing.
Invest in yourself through screen time and learning
The saying – ‘Rome was not built in a day’ could not be more appropriate in this instance. To become successful and profitable, you need to invest in both time AND money.
Make it a priority to set aside time on a weekly or even daily basis. Work on your strategy and study the markets; screen time teaches you to read the market and understand the ‘flow’ of things. No matter how much money you put in the markets, if it is not backed with research and proper application, you have wasted your time.
Depending on your chosen strategy, the list of tools will vary. This list comprises the basics to get you on your way -Stay Inspired!