If you want to trade on Forex profitably, there are several indispensable Forex trading tools you should include in your trading activity.
The Forex Index Calculator
If you are positioned on the currency market, the Index/Forex calculator allows you to manage the risk of your positions. For example, if you have a capital of 1000 euros and you want to risk only 1% per trade, then you can only lose 10 euros per position. The calculator gives you the exact value in your order book.
It gives you access to the pip value in your base currency, the interest rate in the chosen currency pairs, and it offers an estimate of your profit or loss for a given trade. You can use PRT (ProRealTime) to have access to live exchange rates, in addition.
The profit simulator
In trading, a profit simulator is a software that allows you to make profitability forecasts. Thus, you can calculate how much an investment will bring you in the future. And become a profitable trader.
The time factor is essential in your financial investments. A profit simulator helps you define the time ranges needed to achieve your goals. It allows you to understand how different markets work and to put in forex trading strategies that offer regular profitability.
By having a clear view of the progress of your investments, you can make informed choices and maximize your profitability.
Forex compounding calculator
Compound interest is the action of reinvesting the profits back into the investment in order to increase the profits even more, or in other words, earn interest on the interest. If you don’t reinvest earnings, your investment growth will be linear; when you accumulate the profits since you benefit from the initial investment and the reinvested capital, the growth becomes exponential. If you want to calculate the compounding interest, use a Forex compounding calculator.
The screener: a trading tool not to be overlooked
A screener is a filtering tool. It will draw from a long list of instruments (stock market, currencies, etc.) according to a defined setting so that it only displays stocks/instruments that meet specific criteria. The screener allows you to automate your recurring searches and therefore save you a lot of time. It’s up to you to customize it so that it displays all the information you need to make your investments.
The trading platform
The trading platform is the website or software that allows you to follow the prices of financial assets and place your trading orders. It is, therefore, the basic tool of any trader. Choosing the right trading software is of paramount importance.
Before selecting your trading platform, you should consider the following criteria:
- Its ease of use;
- Its basic and optional features, which must match the markets you have selected (stock market, Forex, cryptocurrencies, etc.) and your trading style;
- The security of the platform: we recommend regulated platforms
- Transaction fees.
Becoming a profitable trader cannot be improvised. But using good trading tools allows you to simplify your trading process. You learn to save time and manage your risks, progress and keep a critical eye on your performance. These tools promote the practice of intelligent trading, where your emotions will not take control.
