The Forex market is not for the faint of heart. It moves in such a unique way. You will have lots of competitors, including professional, experienced traders and also huge banks and companies. The market has a currency turnover of US$6.6 trillion every day. In the early 90s Forex trading was only for large corporations and hedge companies. But this setup didn’t last too long thanks to the latest technology that changed the traditional way of trading.
Nowadays, retail traders are growing in number. Anyone interested in trading can trade with the minimum capital of $50 and high leverage is introduced to them. Although this is considered a blessing to many, new traders might get too overwhelmed and might lose more than their initial investment.
But there’s nothing to fret about, there are trading tools that can help new traders overcome the challenges in the Forex market. These trading tools are very helpful in providing a reasonable trading decision.
Almost all reliable Forex brokers provide access to the trading platforms released by MetaQuotes, either MetaTrader 4 (MT4) or MetaTrader 5 (MT5). Although MT4 is older than MT5, it still remains to be largely accepted by Forex retail traders.
In MT4, there are 30 built-in technical indicators and more than 2,000 free indicators that can be customized. There are also 24 drawing tools such as shapes and arrows, lines, channels, and the Gann and Fibonacci tools to name a few. As for MT5, it has more built-in technical indicators and drawing tools, 38 and 44 respectively. Knowing all of its capabilities, it can obviously respond to the needs of most technical analysts in providing broad market analysis.
Not all free trading platforms allow access to economic calendars. And because it is a crucial feature, traders particularly prefer trading platforms that have this feature. The most significant use of economic calendars is that it displays the events connected to the financial market and the economic performance of market players. It also provides scheduled news data concerning the economy.
Risk management strategy is important in your presence in the financial market. Once a trader fails to adopt a reasonable risk-management approach, it will only spell disaster. Because of this reason, a lot of traders choose to use Forex calculators which can help simplify the trading method. There are different calculators to be used in trading such as pip calculators, margin calculators, and swap calculators which are used to calculate the interest you paid during your trades.
Making a daily journal is very important in monitoring your everyday development. It is also the best way to measure your performance as well as clarify your weakness and strength as a trader. Mistakes are not supposed to keep you from obtaining your dreams. It should be your stepping stone for a better trading career. That being said, looking back at your Forex trading journal will give you an insight into the things that made your trades go sour and the ways that contributed to your previous success in MetaTrader 4.