By Admiral Markets

Dear Traders,

Setting up your own day trading office isn’t difficult and doesn’t have to cost a fortune.

Even if you do spend a large sum, investing in yourself will pay-off in the long run.

We’ve already covered how to organise your trading office.

Now, let’s focus on essential software that every trader needs to have at their disposal.

I’ve compiled a list of tools you should definitely consider.

<H2>Currency correlation tool</H2>

In financial terms, correlation is the numerical value that describes the relationship between two variables.

In Forex terms, currency correlation refers to how well one currency correlates with other currencies.

Correlated currencies basically react to market changes in three ways.

Specifically, those with a:

1. high positive correlation, will react the same way
2. high negative correlation will react in opposite ways
3. low correlation will move independently of each other and show no similar movement.

The range of correlation coefficient usually gets between -100 and +100.

And the higher the correlation – the more similar these movements are.

You should always pay attention to correlations.

Double exposure can lead to big losses, especially if you trade with more than a single currency pair.

Price alarms

A price alarm is something no day trader should trade without.

Imagine losing a good setup because you were away or focused on something else.

Sounds bad, right?

A price alarm activates when the price of a Forex currency pair reaches or crosses the level specified by you.

This way, you can freely move away from your screen or do something else while waiting for a good setup.

Basically, you will have more time to analyse the market and plan your trades.

Price alarms have been a very important part of my trading and analysis.

I use POC zones on a daily basis, so I highly recommend them.

Auto close feature

Auto close script or expert advisor is extremely useful in situations when the market is highly volatile.

During high volatility, your winning trades can suddenly turn into huge losses.

The market will not always give you the chance to use profit stops and you need to act fast.

With one click of a button, you can close all your profitable trades.

Economic calendar

In the unpredictable world of Forex, one of the most important things is to:

…know why the market is moving in a certain way…

…and be able to anticipate these movements with appropriate actions.

A trader needs to:

…plan ahead of any event announcement…

…and react accordingly to huge market movements.

These event announcements may include the release of key economic data such as NFP and inflation report.

The easiest way to predict and benefit from these announcements, is to follow the economic calendar.

Forex system tester

If you want to build your own Forex system or methods, you need a Forex trading program.

By using this specialised software, you can backtest and optimise your strategy.

Additionally, the software should be able to simulate Forex market movements so that you can test your trading knowledge and system in real time.

Choosing the right tools

If you want to trade with the tools I’ve mentioned, there are thousands of different options.

But keep in mind that not all software meets quality standards.

When selecting Forex software, do a quick check for these requirements:

1. user-friendliness
2. newbie-friendliness
3. online support
4. security
5. price vs. features ratio.

You can find most of these tools on the internet, but you will probably have to pay to use them.

The good news is that you don’t need to track them down individually.

MetaTrader 4 Supreme Edition has already integrated all the trading features you might need, in one place.

[MT4 Supreme banner]

I use MT4 Supreme in my daily trading and it has repeatedly proven its value.

Do you use any other program that’s vital to your trading?

Let me know in the comments below.

Cheers and safe trading,

Nenad
Article by Admiral Markets

Source: 5 essential programs to help you with Forex trading

Admiral Markets is a leading online provider, offering trading with Forex and CFDs on stocks, indices, precious metals and energy.