Forex Trading Tools
We get a lot of questions about what kind of tools you need to trade Forex. So I thought I would whip together this blog to show you what I believe are the Forex trading tools you need to trade successfully. This article is going to assume that you have already got some sort of training or education about trading.
However, if you have not done any formal education just yet then Two Blokes recommends Trader Support Club for technical training and Jarratt Davis for Fundamental training. (Yes if you purchase from those links we get a little commission….we work with these guys because we think they offer you the best stuff and it helps keep us going with creating these podcasts and blogs). 😉
In this Article:
- Brokers, Trading platform and Indicators
- Economic Calendar
- Breaking News Websites
- Audio Squawk and News Feed
- Trading plan and Journal
Brokers, Trading Platform and Indicators
Ok, these ones are a no brainer but I must call them out. You need to open a trading account with a broker. Check out our broker review page HERE. After that you need to download a trading platform.
Most brokers will provide you with MT4 and MT5 which is what I use. Many brokers will offer multiple platforms to trade on but MT4 or MT5 are the gold standards. They are simple to use but very powerful and will do everything you need. There are endless YouTube tutorials on MT4 and 5 as well. And if you are into algorithms MT4 has its own programming language that is used by millions of people worldwide.
If you need any custom indicators then you need to add them to your trading platform. I personally use a traders pivot indicator and a spread indicator. You can see the trader pivots on my chart below. Pivot points have been used for decades as a way of determining where the market will most likely buy or sell from in the upcoming session. The pivot point calculations are based on what price did the previous session which in turn will plot levels ahead of the current session that traders might look to trade from. It also shows me yesterday’s high and low which are always a place of interest.
I also use a spread indicator because I do trade around news events. These events can cause a lot of price volatility and sometimes the spread will get really wide for a few moments. I keep it on the chart so that I don’t punch into a massive spread and ruin the profitability on the trade.
If you want don’t have either of these indicators and would like to try them out on your charts shoot me an email and I will forward you them for free. You can buy me a beer if you want 😉
It doesn’t matter if you are a fundamental, technical or a straight up degenerate gambling trader; you need to know when market moving news is scheduled to hit the market. If you ignore when economic news is scheduled then you are sure to get run over and lose money and sit there wondering why the market hates you. It literally only take one minute to look at when market moving news is scheduled to be released. Forex Factory has a great free calendar that will keep you up to date on scheduled high impact news events.
Breaking News websites
ForexLive is the best free breaking news website by far. If the web browser asks if ForexLive can send you push notifications say YES! Every time they post something you will get a little popup in the bottom right corner of the screen. It also gives you market data and economic releases seconds after they hit the wires.
There are a few other websites that offer some good news but are definitely slower than ForexLive. Check them out:
- Central Bank News: http://www.centralbanknews.info/
- Bloomberg news: http://www.bloomberg.com/topics/currency
- FX Street: http://www.fxstreet.com/
- eFX News: https://www.efxnews.com/series/central_banks_insider
Audio Squawk and News Feed
You have a couple routes here. You can go the premium route and pay a monthly fee to a company such as Ransquawk. This is a real-time news and audio squawk service that does all the heavy lifting for you. They do a rundown of all market moving news events and provide instant analysis from some of the best analysts in the business. You can read a full article of all the benefits HERE. And if you sign up make sure to mention Two Blokes Trading and they will give you a 10% discount HERE. I personally could not trade without Ransquawk. They make everything simple and fast for me to get the information I need to trade profitably.
Your other option is to get your information from free websites. The information will not be instantaneous like Ransquawk and you will have to do a lot more digging to find the information you need, but they are a good place to start. Financial Juice has a free audio squawk and news feed that is delayed by a couple minutes. This is completely fine when you are just starting out so that you can get a sense of how an audio squawk works with your trading. You also need to sign up but this is free.
Trading Plan and Journal
Ummmmmm so this is like kind of important. You should already have a trading plan that you got from your education or that you created yourself. If you don’t have a trading plan then please go Fu&^ing make one! If you don’t know how then Google it! Or you can buy this really good book by Justine Pollard on how to make a trading plan and make your life a whole lot easier.
The next step is to start trading your plan and track your results in your trading journal. The idea here is that you track your results so you can see if you are actually following your plan or if your plan needs some fine tuning. You might be surprised but in my experience at least 90% of “Traders” don’t follow their plan or simply don’t track their results. I can tell you with 100% certainty that ALL these traders lose money. THE END! Don’t be one of those uneducated traders.
You have a few choices on how to go about journaling. You can go the old fashion pen and paper route, that’s how I started way back in 2006. If you have mad Excel skills you can create your own trading journal. Or if you are like the rest of us who don’t want to reinvent the wheel you can check out the Edgewonk Trading Journal. This is the best trading journal on the market; it’s very affordable and will be daily staple in your trading business success. I use it myself and it would be worth your time to check it out.
I hope this article helped out.