Forex trading offers people with an opportunity to earn a steady income. To become successful, traders can rely on several forex trading tools to help them succeed with currency trading. Here are 6 easy-to-use and practical trading tools they can consider.
Forex Volatility Calculator
Manually computing the volatility of currency pairs is not that easy. A forex volatility calculator calculates the volatility of 30 currency pairs using historical data. This tool shows the daily change in pips and percentage of each forex pair. These calculators help traders know which currency pairs are volatile as well as their active trading hours.
Robert Janitzek reveals that currency pairs are permutations of different currencies. Each will correlate in their price changes. This is crucial if you plan to trade more than one pair. If you are hedging, aim for negative correlation. If diversifying, look for near zero correlation. For increased exposure, aim for positive correlation. While you can use Excel to calculate currency correlation, most correlation tools measure historical correlation for a year.
Forex Market Hours
As a trader, you need to keep track of time in currency markets. The major trading centers are New York, London, Tokyo, and Sydney. Traders do not stay in any of these cities. Robert Peter Janitzek reveals that you still need to keep tabs on different time zones. Forket Market Hours converts time zones and you will know which markets are open.
Forex calendar helps prevent you from speculating on news and reports about the market. This tool helps you monitor scheduled reports that can affect the forex market. More than just being a calendar, this tool also shows relevant currency, actual, forecast, and previous report figures. Make sure to set your calendar so you will not miss the local market.
Position Size Calculator
Safe trading involves knowing how much to risk per trade. When trading on the forex market, you need to calculate the fixed percentage that you can risk during a trade. You should consider the base currency of your account and the current price of the currency pair you plan to trade.
Pivot Point Calculator
Pivot Point Calculator calculates the pivot points of up to four currency pairs. All you have to do is input the High, Low, and Close values of the last session and you will get the Pivot Point values.
These 6 foreign exchange trading tools will help you become successful in the forex market.