Currency trading is a high reward investment. If you are a currency trader, then you are already aware of the high potential returns of investing in money. As with any high return investment, there is also potential risk. Currency trading is no different: It’s a high risk, high reward investment.
Still, the potential for incredible returns entice investors to practice currency trading. The savvy investor knows that they can limit the risk, while still benefiting from the incredible terms with the right tools and techniques.
Know Your Fundamentals
Tools of the Trade: Research, Research, Research
Once you have a solid understanding of how the forex market works and you feel comfortable trading in currency, you need to pick up some tools to help you do proper research and strategize your trads. With the right amount of knowledge and tools you can invest wisely and see significant returns. In this case, the more tools you have at your disposal to gain more knowledge is how you get the advantage in the foreign exchange market.
You can find a variety of tools online. Many currency trading platforms offer free research and analysis tools. Some of these tools are limited to clients, but you can often find tools that are free to the public as well.
Here are some pretty essential tools for market analysis to help you get started:
- Alpari Squawk: Get all the major market news and professional analysis through this dedicated audio stream based out of london. You’ll get comprehensive live news, coverage of fixed income, interest rate, equities, forex and commodity markets, as well as daily and weekly economic data highlighting major events.
- Trading Central from Alpari: Get specialised technical analysis reports on Forex, equities, indicies, futures and bonds. This includes a wide range of technical analysis reports based on technical indicators and covering time frames for any style of trading: short term, medium term or long term traders.
- Autochartist: One of the leading sources of software for forecasting of financial market trade data. This is an advanced price movement analysis tool that can help traders make informed trading decisions.
- Alpari AM is a trading tools that automatically scans the foreign exchange market price action throughout the day. By doing so, it can detect technical patterns to help traders identify trading opportunities.