Trading involves multiple variables and a torrent of information, but there are multiple tools to help you filter out what is useful and what is not. A trader could become buried in all the information available to them – technical, fundamental analysis, geopolitical events and policy decisions.
Here is a list of tools that will help you understand, contextualize and hopefully achieve your investment goals.
- Unique Indicators
Chart indicators help traders extrapolate or summarize complex data displayed in their price charts. Sure, there is a Library of Congress-worth of off the shelf solutions, but how would those work with a personalized trading strategy? Or how would they display a specific metric which you believe is the most important for your trading? You might like Fibonacci but want to see it in correlation with Bollinger bands. Luckily there is someone out there that created a custom indicator like that.
- Economic Event Calendar
Knowing the macroeconomic events of the week and month can help you manage risk or pivot from an investment or adapt your trading strategy. This may allows you to avoid having trades effected by the volatility of an upcoming event. Just like you avoid volatility you can also use it if you choose to, actually trading the upcoming event.
Most Forex brokers offer an economic calendar on their website for free.
- Recognition Tool for Emerging Chart Patterns
These trading platform plug-ins help highlight the emergence of patterns within a price chart. Why is this valuable for traders? Well it can help you recognize the early stages of a reversal, retracement or even a break through.
- Builders for Strategy and Forex Robots
User friendly software is nothing new, so the fact that there are platforms that allow you to build your own EAs and create trading strategies shouldn’t come as a surprise. None the less these are extremely valuable tools, that can make your trading experience much more effective and customized. This can also save you money, because now you don’t have to take night classes to learn how to program.
- Candlestick Apps
If you asked a layman what a candlestick app is they probably would assume its wax related. Luckily you aren’t a layman (or woman) so you know how valuable a charting tool candlesticks are. Not only are they valuable chart indicators but there are apps or programs which you can use to integrate candlestick functions automatically. For example, you can tell your program to open a trade at the beginning of a candlestick and close it by the end. You can also set alerts to notify you moments before a candlestick closes.
- Virtual Private Servers
A VPS or virtual private server allows you to trade even when your devices are switched off. Essentially your EAs or other automated trading apps are hosted on the VPS allow them to work even when your main trading terminal is deactivated. Although most VPSs are paid, many Forex brokers offer them free of charge in their account services suite.