If you are lucky, you will be trading with a good broker and won’t have to worry about the essential tools. But luck is a luxury that traders can never afford. Relying on luck is like placing your money in the line of fire. So, if you want to do that, you should not care about professional tools. But we highly recommended that you read this article as many people in Hong Kong have managed to improve their skills and performance just by going through this article.
What are the essential tools we need to execute a trade? We can list more than 10 but to simplify the trading process, we will focus on the top 4 tools you need to consider. These are the most basic tools, yet many brokers fail to provide perfect examples of them.
Many brokers are offering area and line charts for the market analysis process. But these are the chart that doesn’t tell you the complete story of the market. You have to depend on the bar or the candlestick chart. Candlestick charts are a more advanced form of bar chart as you visually examine the buying and selling momentum with a glance at the platform. But if you use an area chart, you deal with a wide target. Otherwise, you will never be able to find the perfect price at which to buy or sell the asset. So, find a broker who can offer the best trading platform.
A professional trading platform is designed to make the trader’s life easier. For instance, you won’t have to follow a trading journal since the professional platform will track every trade and you can access the data at any time. Before you open a trading account, open a paper trading account, and test the charting tools. If you feel satisfied, you can trade with them. If not, you have to find another broker.
You can take trades using you smartphone but it is not enough to analyze the price dynamics. Learn more about the complicated price nature and you will notice that you need to solid laptop or hardware device that can give you access to the trading platform. The computer should be fast enough to handle the software. Some of the professional trading platforms are a little bit heavy but you can easily overcome this problem by using a medium configuration laptop or personal computer.
You may say, many traders are earning money just by using their smartphone. But do you think they can hold on this gain for a long period? To lower the risk in trading, you get the best possible internet connection and install the trading platform in a premium laptop.
Without having a trading diary you can’t follow the rules. You must write down the key rules that are required to execute the trade. If you ignore the key rules for trading, it will be hard to overcome the loss. Use a paper-based trading dairy like a journal so that you can keep the progress. It might a tough task but if you start practicing on it, it won’t take much time to get dependent on such a trading routine. The routine will help you to take trades with discipline and you will learn to trade with high-quality setups.
The strong risk management plan
A risk management plan is considered a tool of the trading business. You can use smart EAs, a manual method, or indicators to manage the risk profile. Those who are taking a high risk and trying to gain huge profit blow up their trading accounts. Create a strong risk management plan, so that you can cope with any kind of market condition. Try not to risk a huge amount as it imposes a great threat in your career. Follow the path of the successful trader to be good at trading.