Six Forex Tools You Can’t Afford To Ignore!

Every forex trader dreams of establishing a successful career and reaching his/her financial objectives. One of the most lucrative ways to achieve this is trading in the forex market. If you are planning to trade currencies, ensure a thorough understanding of the market. It might be challenging to succeed in this market if you are unwilling to work hard and learn the market jargon. Numerous factors, such as geopolitical events, central bank policies or economic news events, affect forex trades. These elements can influence the exchange rate, making forex trading somewhat tricky. You must have extensive knowledge and trading skills to succeed in this high-volatile market.

To make a living from forex trading, you must use a successful trading strategy, money & risk management to protect against unforeseen losses and have a solid trading plan. It is riskier for traders to predict the market because it is unreliable and notorious for its high volatility. However, some top forex tools for traders Make Trading Easier. With the aid of forex trading tools, you can save time and effort. They are great for assisting traders in staying on course and determining whether executing a trade is worthwhile. When everything is planned, you will have a clear goal and strategy for reaching your objectives.  

This article will discuss the top 6 best forex trading tools to make trading easier for you. Some tools are free of cost, while others are paid for. You need to ask your broker to know the availability and other details of these tools.

Top Forex Trading Tools

1. Forex Trading Calculators– Trading tools such as trading calculators simplify trading in various ways. They help you estimate your risks and plan out your trades in advance. You can predict the course of your transactions by calculating risks before trading. For example, a pip calculator is a useful tool that calculates the Movement of Currency Pairs you’ve traded in pips. Knowing this will help you know your profits and when to exit the trade. Similarly, other tools can be used to determine other crucial trade values. 

You can determine whether your chosen strategy suits you and whether your gains outweigh your losses. When deciding whether to take a chance with your next position, knowing how much money you stand to gain or lose on each trade can be helpful. You can also calculate the risk you would need to take to compensate for prior trade losses. Additionally, using a trading calculator will increase your chances of success in the forex market because they enable you to make more thoughtful trading choices. 

Trading calculators are of the following types: 

  • Pip Calculator
  • Margin Calculator
  • Profit Calculator
  • Volatility Calculator
  • Pivot Calculator
  • Commission Calculator
  • Fibonacci Calculator
  • Position Calculator
  • Profit–Loss Calculator
  • Multi-target Calculator

2. Forex Economic Calendars – The forex market is impacted by every significant economic or political event that takes place on a global scale. A forex trader, therefore, needs to be knowledgeable about a variety of news events in order to make wise trading decisions. It’s important to watch recent trends and news; Forex calendars are great for doing this. According to your preferred time zone, they assist you in staying informed about important information.

3. Forex Currency Converter– A website or software program that offers straightforward conversion of currency values based on current exchange rates is known as a currency converter. It is easy to quickly change the value of one currency to another, such as dollars to euros or euros to pounds, and vice versa, using these free online currency converters.

4. Forex Time Zone Calculator London, New York, Tokyo, and Sydney are the major trading timings on the foreign exchange market. Each market’s opening range establishes the tone for each session, and trading opportunities are generally more plentiful during the hours when sessions overlap. People living outside the preferred time zone can easily convert time zones using Forex time zone calculators. As a result, trading will be made easier, and access to the preferred time zone will be simple. The best part is that it is totally free of any charge, so you don’t need to pay any money for this tool.

5. Currency Correlation Calculator – This tool is one of the essential tools required for forex trading. It benefits traders in several ways. Traders can make more informed trading decisions by determining the degree of positive or negative correlation between various currency pairs. Additionally, currency correlation can be used to ascertain the connection between the price changes of the relevant currencies and to trade more than one currency pair.

6. Forex Risk Calculator – Trading can occasionally be unpredictable and stressful. It is very important to know when to Exit Trades Successfully, which you can do with the help of a profit calculator. But, if the market moves in the opposite direction, you should know when to exit to avoid heavy losses. For this, the Forex risk calculator can be really handy. To prevent blowing accounts, it is recommended that you calculate your risk and lot size before making any trades. Risk management is the most crucial thing when trading forex. It entails taking calculated risks to preserve most of your trading capital and using the best forex tools and resources. Some forex risk management steps include setting a risk/reward ratio, limiting the risk per trade to 2% of the total capital, placing stop-loss orders for each transaction, and using a forex risk management calculator. The Forex risk calculator helps to count the pip distance to your stop loss and calculate the lot size for that trade. This will aid in securing your funds and will help to prevent your account from blowing up.

You are dealing with real money when trading forex, so a trade could always go against you. Understanding that only some people are suited for forex trading is also crucial. However, if you are prepared to invest time in learning about the forex markets and putting what you have learned into practice, your confidence will grow over time. You can overcome your fear by fusing your technical and fundamental forex analysis skills. Trading tools come in handy for profitable and ethical trading. The best part is that using forex trading tools is quite simple. You can easily perform all the intricate calculations without exerting additional pressure on your brain. Not only forex tools for trading will help your journey become smoother, but also, you can climb the ladder of success faster. 

You may be interested in: 4 Things to Consider When Hiring Remote Workers