Forex Trading Strategies
How to Choose a Trading Platform; A Guide for Beginning Traders
The trading platform that you choose is your window into the capital markets. On your trading platform, you should be able to execute trades, chart price movements, develop trading strategies as well as learn about different tradable assets. If you are a novice trader, looking for a good trading platform, you should consider several issues when looking for a trading platform to use for your investments.
Where to Start
The first step in your search for a robust trading platform is to find a broker that offers an excellent educational portal. The educational section of a trading platform should provide you with information on how each market you plan to trade functions. You want to learn about the different terminology that is used to describe the forex and CFD market such as long, and short as well as pips. Try to provide yourself with an overview of the nomenclature of each market. Familiarize yourself with the bid/offer spread as well as volume and liquidity. Once you have a grip on the different words that are used you should move on to determine why the price of an asset with change.
The Forex markets are made up of currency pairs. Your education section should describe how a currency pair is created, and which currency is the base currency and which the counter currency. Your platform should let you know which currency pairs are actively traded and which ones lack liquidity. You should also be able to find a section that is devoted to trading strategies.
Some trading platforms will offer video explanations as well as articles on how to trade. Additionally, you might find trading platforms that offer one on one trading lessons that will help you get up to speed very quickly.
There are several different trading tools that you can use to determine the future direction of an asset. You want to make sure that your trading platform provides you with real-time charts, as well as, technical indicators. A technical indicator is a study that helps you determine if a trend is in place, or if momentum is accelerating or if prices are mean-reverting. It is also very helpful to know if the sentiment is increasing or ready to decrease. Another key trading tool that is very important is an economic calendar. This is a tool that allows you to see in advance, all the data that is scheduled to be released over the next month. It provides what is expected to occur as well as what has occurred in the past.
Easy Access to Your Trading Platform
Trading platforms are available in several formats. Many of these platforms are accessible only on your desktop and need to be downloaded to work properly. There are also several very good trading platform that can be used through a browser. This allows you to trade and have access to your trading platform wherever you have access to the internet. Lastly, most forex and CFD brokers offer a mobile trading platform. This allows you to trade while you are on the go, and deposit and withdraw capital, directly through your smartphone or tablet. It can be helpful if the mobile app work and feels like the desktop or browser application.
The Bottom Line
The bottom line is that you want to find a trading platform that provides you with easy access and has plenty of educational material to help you learn how to trade. You want to have access to hundreds of different assets, as well as information on trading strategies. It’s also helpful to have access to multiple apps including a mobile trading application.