The Essential Trading Tools, for good tradability
The world of trading can be extremely challenging and competitive. To successfully navigate this world and succeed, traders need a wide range of tools and resources, some tools are more readily available and easy to read, others require study to use effectively but lead to unique results. Investetica includes ad hoc tools and training to make traders make their trading more profitable. In this article, we will discuss the essential trading tools for a trader who wants to achieve good and sustainable results in the markets nowadays.
Size Calculator
One of the most important essential trading tools for traders is the size calculator . This tool allows traders to calculate the size of the position they need to take based on their account, lot size , leverage , and margin size. This is especially useful for traders using leverage, as they can calculate their risk accurately and then adjust their position accordingly. One of the most efficient is made available by Dukascopy which you can find at this link although you will find several dozen on the net.
Margin Calculator
The margin calculator is another important tool for traders. This tool allows traders to calculate the margin required to open a position. Margin is the amount of money a trader must deposit to open a position. By using a margin calculator , traders can avoid opening positions that require too much margin, avoid incurring margin calls, and most importantly, calibrate the size of their positions as needed. This tool is also readily available through google.
Pivot Point Calculator
This tool, useful for identifying support and resistance levels in a market, provides clues as to when price may rebound and reverse its direction. Support and resistance levels are critical in determining entry and exit points from a position.
Volatility Calculator
This very useful tool allows you to assess the volatility of a market i.e., the magnitude of price fluctuations in a market. This is also useful for identifyingthe markets that are suitable for one’s trading style. Investing provides one for free
Volumetric Indicators
Volumetric indicators are tools used by traders to analyze markets and are not limited to the classic daily or hourly volume indicator but can go far beyond that. You may not have known about the Volume Profile, a key indicator for more information than the mass who rely instead only on more widely used and available indicators such as the Fibonacci moving averages , etc.
The Volume Profile allows traders to assesssupply and demand in a market. Using the Volume Profile, traders can analyze data on trading volume and buy positions and sales to identify key price levels and areas of support and resistance.
It basically tracks the trading volume of an asset in relation to different price levels by creating a horizontal bargraph showing the trading volume for each price level thus representing the volume profile over a given time frame. This allows traders to visualize the price levels at which the majority of trading volume and thus identify the most important price levels.
Because it is very useful for identifying areas of support and resistance, traders who possess this tool can determine the best entry and exit points from a position.
The Volume Profile used in conjunction with all other information that takes part in the decision-making process, proves to be a valuable ally in the search for turnaround.
Investetica provides this and other tools in its range of tools for the trader.
If you are interested in learning more about essential trading tools, I suggest you start here.
