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Like any other investment strategy, forex trading requires preparation, planning, and time to get the most out of your investments and to become skilled at it. Many people trade forex to diversify their portfolios, while others make trading foreign currencies a full-time career. Whichever scenario sounds more interesting to you, there are ways to improve your trading experience and make it easier. In this article, you’ll learn about six tools that can help you trade forex like a pro.
Six tools for forex trading
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Trading platforms
To buy and sell foreign currency, you need a trading platform. It gives you direct access to forex trading, placing orders, and tracking exchange rates. Brokers usually offer web-based or downloadable application versions of trading platforms. The most popular forex trading platforms are MetaTrader 4 (MT4), MetaTrader 5 (MT5), and cTrader.
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Virtual private server
A virtual private server (VPS) functions as an independent server with its own operating system, storage, and resources. It allows you to run automated trading systems 24/7, host other software, and avoid high latency, which can cause slippage in trading. Many forex traders use VPSForexTrader for reliable hosting.
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Charting software
Tools like this allow you to analyze price patterns and fluctuations over time to make more strategic trading decisions. Most charting software gives you access to different charts, like line or candlestick charts. Some of the popular charting software options for forex traders are TradingView and ProRealTime.
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Economic calendars
You need an economic calendar to follow the latest and upcoming financial events, central bank announcements, and economic data releases. These can influence currency exchange rates, so having an economic calendar can help you stay ahead. Popular economic calendars used in forex trading are ForexFactory and FXStreet.
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News sources
Most forex traders follow reliable and up-to-date news sources for the latest financial and geopolitical news. Popular news sources, like Bloomberg Terminal, Reuters, and the Financial Times provide timely information about regional and international events that can influence exchange rates. However, you should also check news specific to the countries whose currencies you’re trading.
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Risk management tools
There are many risk management tools available in the market. Each has different functionalities, but the goal is to help you reduce losses and automate trading. Most forex traders use tools to create stop-loss or take-profit orders, margin or position size calculators, and many others.
Most forex traders follow reliable and up-to-date news sources for the latest financial and geopolitical news. Popular news sources, like Bloomberg Terminal, Reuters, and the Financial Times provide timely information about regional and international events that can influence exchange rates. However, you should also check news specific to the countries whose currencies you’re trading.
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Risk management tools
There are many risk management tools available in the market. Each has different functionalities, but the goal is to help you reduce losses and automate trading. Most forex traders use tools to create stop-loss or take-profit orders, margin or position size calculators, and many others.Most forex traders use tools to create stop-loss or take-profit orders, margin or position size calculators, and many others.
