While traders will often cite the foreign exchange as the most popular and widely accessed financial market, it is also renowned as the most volatile. Aside from its exceptionally high levels of leverage and liquidity, it is also vulnerable to sudden price shifts that can undermine investments and turn potential profit into a substantial loss. In order to counteract this, traders must rely on technological advancement as they look to execute immediate trades that can help them to capitalize on real time trends.
Fortunately, the current generation of forex investors are able to rely on cloud based trading platforms and analytical resources that provide critical insight into a changeable marketplace. From comprehensive trading software such as the MetaTrader 4 to mobile applications and single technical indicators, there is a diverse suite of tools that have been designed to assist traders in minimising risk and maximising profit.
3 Leading Resources for Contemporary Forex Traders
With this in mind, what are the most effective web based tools for forex traders, and how do they facilitate greater levels of profitability? Consider the following: -
Autochartist: Before you begin to appraise individual tools and indicators, it is important to use more generic resources that help you to research trades and gain a deeper understanding of the forex market. Take Autochartist, for example, which is a graphic led application that includes several unique tools for analyzing data, researching specific currencies and identifying underlying trends. Regardless of your preferred method of trading, Autochartist enables you to evaluate the real time forex market and have information delivered in a simple, graphic format. Over time, the use of this tool will help you to indentify trends and estimate their impact on the existing market.
The Alpari Newsroom: Placing these multi-purpose and generic tools to one side, there is also a need to use forex trading resources that suit your specific investment strategy. For individuals who employ the forex news method of trading, for example, there is a pressing need to access reputable and real time programs that deliver regular economic updates. Alpari’s Newsroom is a relevant example, as this releases real time news bulletins and updates throughout the trading day. This in turn offers investors a clear insight into prevailing economic trends and more specifically how they are impacting on market sentiment.
TraderConnect: If you are a novice or inexperienced trader, you may find the forex market a particularly daunting environment in which to invest. With this in mind, there may be a need to connect with fellow traders who have a greater understanding of the markets vagaries and more acceptable levels of experience. TraderConnect is a social trading platform that allows MetaTrader 4 users to connect in a single online space, so that knowledge, opinion and advice can be shared for the benefit of members. Offering traders access to a global community of like-minded individuals, there is even the opportunity for aspiring investors to share specific trades and create more profitable portfolios.
The Bottom Line for Traders
The volatile and unpredictable nature of the forex market can be extremely challenging, whether you are new to the environment or someone who has struggled to adapt their strategy in changeable economic times. These innovative tools and online resources can help you to create a more even playing field, however, so that sudden price shifts can be pre-empted and ultimately negated. While these tools may not eliminate all of the risks associated with currency trading and the forex market, they at least offer a critical insight into the foreign exchange and empower investors through shared knowledge and technological advancement.
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