{"id":90713,"date":"2016-06-09T08:13:12","date_gmt":"2016-06-09T12:13:12","guid":{"rendered":"http:\/\/countingpips.com\/?p=90713"},"modified":"2016-06-06T08:13:30","modified_gmt":"2016-06-06T12:13:30","slug":"5-essential-programs-to-help-you-with-forex-trading","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2016\/06\/5-essential-programs-to-help-you-with-forex-trading\/","title":{"rendered":"5 essential programs to help you with Forex trading"},"content":{"rendered":"
June 9, 2016<\/div>
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By Admiral Markets<\/b><\/p>\n

\"Am<\/p>\n

Dear Traders,<\/p>\n

Setting up your own day trading office isn’t difficult and doesn’t have to cost a fortune.<\/p>\n

Even if you do spend a large sum, investing in yourself will pay-off in the long run.<\/p>\n

We’ve already covered how to organise your trading office<\/u><\/a>.<\/p>\n

Now, let’s focus on essential software that every trader needs to have at their disposal.<\/p>

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Free Reports:<\/p><\/div>\r\n

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<\/a>\r\n\t Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p>

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<\/a>\r\n\t Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p>

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I’ve compiled a list of tools you should definitely consider.<\/p>\n

<H2>Currency correlation tool<\/H2><\/p>\n

In financial terms, correlation is the numerical value that describes the relationship between two variables.<\/p>\n

In Forex terms, currency correlation refers to how well one currency correlates with other currencies.<\/p>\n

Correlated currencies basically react to market changes in three ways.<\/p>\n

Specifically, those with a:<\/p>\n

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  1. high positive correlation, will react the same way<\/li>\n
  2. high negative correlation will react in opposite ways<\/li>\n
  3. low correlation will move independently of each other and show no similar movement.<\/li>\n<\/ol>\n

    The range of correlation coefficient usually gets between -100 and +100.<\/p>\n

    And the higher the correlation – the more similar these movements are.<\/p>\n

    You should always pay attention to correlations.<\/p>\n

    Double exposure can lead to big losses, especially if you trade with more than a single currency pair.<\/p>\n

    Price alarms<\/h2>\n

    \"alarm.png\"<\/p>\n

    A price alarm is something no day trader should trade without.<\/p>\n

    Imagine losing a good setup because you were away or focused on something else.<\/p>\n

    Sounds bad, right?<\/p>\n

    A price alarm activates when the price of a Forex currency pair reaches or crosses the level specified by you.<\/p>\n

    This way, you can freely move away from your screen or do something else while waiting for a good setup.<\/p>\n

    Basically, you will have more time to analyse the market and plan your trades.<\/p>\n

    Price alarms have been a very important part of my trading and analysis.<\/p>\n

    I use POC zones<\/u><\/a> on a daily basis, so I highly recommend them.<\/p>\n

    Auto close feature<\/h2>\n

    Auto close script or expert advisor is extremely useful in situations when the market is highly volatile.<\/p>\n

    During high volatility, your winning trades can suddenly turn into huge losses.<\/p>\n

    The market will not always give you the chance to use profit stops<\/u><\/a> and you need to act fast.<\/p>\n

    With one click of a button, you can close all your profitable trades.<\/p>\n

    Economic calendar<\/h2>\n

    \"2016-05-30_12-34-23.jpg\"<\/p>\n

    In the unpredictable world of Forex, one of the most important things is to:<\/p>\n

    …know why the market is moving in a certain way\u2026<\/p>\n

    …and be able to anticipate these movements with appropriate actions.<\/p>\n

    A trader needs to:<\/p>\n

    …plan ahead of any event announcement\u2026<\/p>\n

    …and react accordingly to huge market movements.<\/p>\n

    These event announcements may include the release of key economic data such as NFP<\/u><\/a> and inflation report.<\/p>\n

    The easiest way to predict and benefit from these announcements, is to follow the economic calendar.<\/p>\n

    Forex system tester<\/h2>\n

    If you want to build your own Forex system or methods, you need a Forex trading program.<\/p>\n

    By using this specialised software, you can backtest and optimise your strategy.<\/p>\n

    Additionally, the software should be able to simulate Forex market movements so that you can test your trading knowledge and system in real time.<\/p>\n

    \"Demo_Account-MT4SE.jpg\"<\/a><\/p>\n

    Choosing the right tools<\/h2>\n

    If you want to trade with the tools I’ve mentioned, there are thousands of different options.<\/p>\n

    But keep in mind that not all software meets quality standards.<\/p>\n

    When selecting Forex software, do a quick check for these requirements:<\/p>\n

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    1. user-friendliness<\/li>\n
    2. newbie-friendliness<\/li>\n
    3. online support<\/li>\n
    4. security<\/li>\n
    5. price vs. features ratio.<\/li>\n<\/ol>\n

      You can find most of these tools on the internet, but you will probably have to pay to use them.<\/p>\n

      The good news is that you don’t need to track them down individually.<\/p>\n

      MetaTrader 4 Supreme Edition<\/u><\/a> has already integrated all the trading features you might need, in one place.<\/p>\n

      [MT4 Supreme banner]<\/p>\n

      I use MT4 Supreme in my daily trading and it has repeatedly proven its value.<\/p>\n