Online Trading tools
Online Trading platforms offer a comprehensive set of trading tools to their traders. They may vary according to individual broker with some of them absent or present, names changed to suit their purpose, but the essence remains the same with Chart, Signals, Technical analysis, Technical indicators, Fundamental analysis and Economic calendar being the core features.
Not every online trading broker provides an extensive set of trading tools as online trading are considered by some as an easy and light version of Forex and stock market. But the issue is that in every financial market operations your decisions cannot be based on pure luck or the very basic tools, which are of use only to beginners.
I would not argue that basic charts, and a couple of technical indicators provided by the vast majority of brokers through their web-based trading platform can and should be used, but that, thankfully, there are other essential tools to improve you profit ratio.
The first thing that prospective traders see when they open a online trading platform, whether it is a real account or demo, is a price chart of EUR/USD. Charts are key as they provide traders with a glimpse into price movements over a certain period of time.
How to Use Online Trading Tools ?
Signals, have been created to aid traders in starting their trades. They are usually created by professional company employed traders with extensive experience through their elaborate research and serve as a guideline.
Technical analysis is a feature that is required to be employed if you are to be a successful investor. It is learned over time and uses technical indicators as its primary tool. Various technical tools should be at hand, depending on your trading platform, to analyze current market conditions to take the best profit you can. I usually use a free MetaTrader 4 platform downloaded on my desktop to help me with this, as, unfortunately, brokers don't always have the whole list of tools ready to use on their web-based platforms.
Fundamental analysis is based on the news feed from respectable sources such as Bloomberg or our website. The main principle is that if the news for a company is good then the underlying stock's price should rise and vice versa
Economic calendar encompasses the most important country news and is similar to the previous analysis. If the market's prediction of a given country's GDP, for instance, is wrong and is lower than expected, then the reaction of price can be negative.
Why use Online Trading Tools?
Finally, using all of the above-mentioned tools is not obligatory, but will definitely make you a better trader, whose decisions are well-thought and founded not on speculations, but on firm data.