ExecutiveChronicles.com | Top 3 tools for day trading | Day trading can be some of the hardest parts of the financial markets because often times it’s very hard to make predictions in such a small period of time. In most cases, if the trader him or herself isn’t knowledgeable enough to do their own research, they’ll find it hard somebody posting an update about the market without it becoming redundant before the traders even read it.
Therefore, every day trader needs a set of tools and knowledge to tackle this trading strategy, especially if they base most of their trades on leverage and various other risky movements.
Charting from Trading View
According to experts from 55brokers, the first thing that a day trader must address is the methods he or she uses to measure the probability of the trade. This means the calculation of the most optimal entry and exit points within a given time frame. All of this is done by watching a chart over a couple of hours to determine these “resistance” and “support” levels.
Furthermore, it’s important that charts have options for 1-minute,and hourly data displayed in front of you so that you’re always aware of what’s going on, plus the tools to mark the entry and sell points.
This can all be found with Trading View, which is free at its base level, but can be upgraded for even more benefits such as signals, access to professional analysis and etc.
Database and news feeds
The next most important tool for successful trades in the database and news feed that have immediate updates every minute or so. This is especially the case with brokers like FBS Forex or anything having to do with currencies.
However, there may be different types of day traders. Ones that trade based on news, and the ones that trade based on chart patterns. If you’re a chart pattern type, then the new feed may be redundant for you, but a database feed is absolutely essential.
The reason is that it contains the history of current time frames and the trends that the charts followed, which could be added to the general analysis of the trader.
These comparisons could actually lead to successful trades, based on how much of a similar economic situation is happening within the world, or at least with the currencies that are being traded.
Next comes the collaboration of the database feed with the tools already available for traders. Things like the Fib retracement levels, Simple moving average, Exponential moving average and etc.
All of these mix together quite well to deliver a relatively successful day trading session for all.
A tailor-made strategy
A tailor-made strategy is absolutely essential for every player involved in the financial markets, not only through day trading.
You’ve probably already seen promotions in various ads where people promote their 100% successful day-trading strategies and whatnot. Although it may look enticing, they’re still very unlikely to fit everybody.
That’s why it’s absolutely essential that you form the strategy based on your trading hours, the assets you trade, the tools you, of course, the capital that you’re ready to lose.
Because in most cases, what these universal trading strategies don’t take into account is the investor’s emotions which are even more ramped up for day traders as they always look at the charts.