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Can technology make you a better trader? Absolutely! The right digital tools can really make the difference between successful or unsuccessful trades. Here are the six digital tools that can make the trading experience easier and more profitable for you.
Forex trading is synonymous with technology. This alternative investment method happens online, in the digital environment. So, technology is the core foundation of Forex trading.
The good news is that technology is rapidly evolving in digital fields like Forex trading. So, it comes as no surprise that there are plenty of new technologies and tools designed to help traders have an easier and more enjoyable trading experience.
So, why not take advantage of all these tools and maximize your winning potential? Here are six tools that all traders need in their active trading lifestyle.
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1. A performant computer
Successful Forex trading starts with a great device to trade from. Whether you’re using a laptop, a computer or even a smartphone, it must be really efficient. However, we recommend using a device that has a larger screen, such as a laptop or a computer, because when you’re trading, there are plenty of charts, information, and numbers you need to pay attention to. But, if you’re always on the go, trading from a smartphone can be so much more comfortable.
Now, how efficient the device you use is can really make a difference between a successful or a failed trade. Think about it: you’re in the middle of a trade, ready to buy or sell, and your computer freezes for a few minutes. That opportunity is lost forever.
If your computer takes forever to load, get rid of it because it stops you from being the best trader version of yourself. Instead, look for a computer with enough memory and a fast processor that won’t constantly lag or crash. Like we’ve said, you’ll need to pay attention to a lot of stuff happening on the screen, so having two monitors is preferred, but it’s not a necessity.
2. Demo trading account
For novice traders, a demo account is a must!
If you’ve just decided to join the Forex market but you’re not sure whether trading foreign currency is the right investment method for you or not, you need to get started with a demo account.
Here’s the thing with demo accounts: when you open a demo account, everything happens well, as a demonstration, meaning that you’re not actually trading in a sense that you’re not doing it for real money.
A demo account allows you to trade, test strategies, and see how the market works without actually putting real money in it. Most brokers offer this type of feature for novice traders to get the opportunity to test how the market works and their trading skills.
3. The right trading platform
The trading platform is another digital tool that can make the difference between successful or unsuccessful trading experiences. A reliable and efficient trading platform will allow you to trade without any interruptions or problems. In contrast, a poor platform will freeze or experience technical issues when you expect them the least.
Now, the trading platform is given by the broker you choose. So, it all depends on how reliable and advanced the Forex broker you choose is. Although brokers with advanced trading platforms can have higher trading commissions, it’s all worth it because you get an overall good trading experience.
Why does the trading platform matter so much? Well, the trading platform can influence your overall trading experience. A strong platform includes plenty of useful tools. For example, best ecn Forex brokers provide their traders with Electronic Communication Network, an automated system that facilitates trades between different participants on the market, which speeds up the process and makes it more efficient. Other brokers may offer charts, time zone converters, or economic calendars.
Whatever tool or feature you think may help you with your trading, look for it in the platform of the broker you want to choose.
4. News app
Do you really have to read the news to be a good trader? Absolutely! Like it or not, important global events can have a major influence on the Forex market’s fluctuations and currency rates. So, a good trader is always informed of what’s going on globally that may influence their decisions to sell or buy.
Natural disasters, economic factors, political factors, or war are all factors that can influence the Forex market. For example, a political crisis in a certain country can affect the country’s currency value, lowering it. If you, as a trader, have that currency, you may have to be prepared to sell as fast as possible before the news spread that the currency’s value is about to decrease.
So, to stay informed on what may influence your trades, make sure you have news apps on your smartphone and allow these apps to send you notifications about what’s happening globally.
5. Pip calculator
To be a good investor, you need to be somehow good with numbers. You may not need a Ph.D. degree in Mathematics, but you sure have to know basic math. For more complicated tasks that require numbers, luckily, you can use digital tools such as a pip calculator app.
A pip calculator will, obviously, help you calculate the pip value of each of your trades in the currency of your trading account. So, when you use a pip calculator, you can manage financial loss risk with a lot more accuracy.
6. Trading journal apps
All successful traders have a trading journal that’s because you can’t learn from your past mistakes or successes if you forget them. When you keep track of your trading activity, what you did wrong or right remains there, and you can always go back to review the strategies you used and see if you should do it again or not. Yet, don’t worry. You don’t have to keep a pen and a piece of paper with you every time you trade. You can simply use a trading journal app that tracks your moves on the market automatically.
