Stock trading used to be a game that only Big Banks insiders could play. The only way for the people to engage in the markets was through a middleman, and they relied on gradual wealth accumulation.
All of that has changed. Nearly all financial markets now provide online trading because of technological advancement. Using various trading methods to take advantage of stock volatility for quick gains is a way of life for swing, acceleration, and day traders alike, and it is becoming more and more common.
You can use various methods to increase your success when trading stocks. Tools that have the potential to increase your profitability significantly are required.
We will discuss some of the essential tools in this blog that will help you become a good trader regardless of your chosen strategy.
Every trader needs to be aware of significant economic developments that can affect the assets they are following. To make profitable trades and avoid severe losses, it is especially important for forex traders to always be aware of what is happening in the rest of the world.
A basic economic calendar is one of the most helpful resources that any trader should often review. The BetterTrader app features a fantastic calendar that lists all key market-moving occasions and lets you set up practical notifications so you can always remain on top of happenings. One of the most important tools in your trading arsenal is the Economic Event Calendar.
One of the most crucial things to remember when you begin trading is the market's volatility. Using the volatility calculator, you can calculate how much revenue your account can handle losing if a trade goes bad.
This is crucial when choosing how much leverage to apply to your trades and whether the risk is worthwhile. Based on historical information regarding previous volatility levels, the tool also assists you in determining which currency pairs provide the best entry and exit chances.
Stock screening tools are fantastic for locating specific stocks that you want to concentrate on. You can use a variety of search parameters to find stocks using the free screener.
A fascinating heat map that measures the frequency of trades among various markets and asset classes in real time is also available on the website.
A Decent Computer Setup
A good computer with a high-speed internet connection is the primary tool every trader requires.
Contrary to popular belief, a trader can be surrounded by something other than six or seven displays to be successful. One computer is plenty as long as you are well-equipped with a reliable, straightforward plan and a handful of your preferred tools.
However, if you discover that you prefer to view numerous charts at once and desire multiple screens at your workstation, by all means, follow your preferences.
For new full-time traders, the triple screen can be ideal. You have a great deal of flexibility with the information that is constantly displayed on three screens. You'll be referencing existing transactions and the moves that more seasoned traders are frequently making as rookie traders.
As you'll probably only have one screen for trading charts, you can fit more charts since it's an entire screen. There would be a second screen tuned to the news, possibly split into live news and the third with a browser page with Google alerts.
If you wish to lead the life of a coffee shop trader, we strongly suggest the Slide from The portable monitor because they are incredibly portable and have a long battery life.
You can trade whenever you want, from anywhere on the planet, using these amazing screens.
Another helpful tool for beginning traders is a pip calculator, which displays the precise amount of money at risk with each trade and the potential profit or loss based on whether your forecast was accurate.
Additionally, it enables you to observe the price movement before placing a transaction, allowing you to determine the exact profit margin before deciding whether or not to conduct a trade at all (or when).
Authentic News Source
It may seem obvious, but having a trustworthy news source that breaks the news promptly can significantly impact your trade. Most traders get their reports from MarketWatch at the Wall Street Journal, CNBC, and Bloomberg.
Due to its excellent combination of television news, internet resources, and mobile apps, Bloomberg is a fantastic alternative, but other news networks can also be very helpful.
Use whichever you make feel most at ease, but ensure you have at least one trustworthy source—if not more.
Market Sentiment Indicator
A sentiment indicator is an additional useful tool for assisting with your investment choices. This tool displays the broad trend of the market for a certain asset. It will provide the percentage of long-term and short-term investors in a particular asset.
Although on its own, this method of price prediction is not very accurate, it is nevertheless helpful and can aid in your understanding of the market as a whole.
Any trading method you learn or devise could appear to be the greatest since sliced bread. Even though you may be certain it will work, seasoned traders advise testing your approach before using it in practice.
Running an investment strategy through backtesting software is the first step in testing it. Backtesting is the practice of examining your strategy's performance in the past using historical market data.
Don't worry; you don't have to do the math by yourself daily or tick by tick. Online, there are several companies offering backtesting software. Some of our preferred choices are:
TradingView is the best option if you're looking for a free backtester.
When we compared the many services offered, Trade Ideas, a premium trading tool, won the title of our overall best option for backtesting software.
You may see how your approach would have performed in the past and how likely it is to be successful in the future with MetaStock's forecaster and backtester.
These are the fundamental trading tools that you require. A phone, trading-charting software, and reliable PC or laptop screens are necessities. Additionally, you must have a strong and timely internet connection.
Moreover, think about purchasing a smartphone with a subscription that you can use as a backup internet connection. Find a broker you prefer with reasonable commissions, regulation, and trading and charting software you enjoy.
Once everything is set up, you can subscribe to the market data you need based on the markets you plan to trade. Enjoy trading!