Forex Charting Software

Because there are so many different foreign exchange brokers, there are also a myriad of charting software programs available to investors. Due to the fact that the charting software is the program with which traders will interface most, it is important to select a charting software program that fits your needs, and ultimately your trading style.

What Forex Charting Software Accomplishes
The goal of a proper forex charting program is to accurately display prices, as well as give a trader an “inside glimpse” into the market activity. This inside glimpse is usually afforded by special tools, such as trading indicators, or by newsfeeds and other market data.

A popular charting software is known as Metatrader. Used by a number of different brokers, MetaTrader is a third-party platform that is made by a company for use on many different forex brokers. Because it is designed by a third-party, investors prefer the platform and charting software over other programs because it is built by forex traders for forex traders. Broker platforms, however, are built by brokers with the brokerage in mind.

Thus, MetaTrader is the effective gold standard software for people who prefer to trade based on technical analysis. Pre-installed are nearly one hundred different indicators with a number of different variables and user-imputed values. This kind of flexibility is unmatched by anyone else in the industry, and it is the reason why so many high-level brokers use MetaTrader instead of developing their own, custom platform: it’s already perfect!

Getting Familiar with Trading Platforms
Make no mistake; how well you adjust to your platform does, in many cases, determine your success in the financial markets. Many traders rush into the markets, failing to get acquainted with the software and find that they lose trades not because they are making bad trades, but because they don’t know even the basic ins and outs of opening and closing positions.

Forex software is not difficult to use, however, it isn’t exactly photo-editing, either. Because charting software is usually linked to an account through a brokerage firm, each buy and sell means real money changing hands. To learn with real money is financial suicide, since it is certain that new traders will overlook at least one very important item once.

Usually, excited traders hop into a trade, and watch as with each movement in the market their account balance rises and falls. As the trading session comes to a close and volatility subsides, small movements in the market make for less exciting screen-watching, and the investor may leave their computer for some leisurely activity.

But wait. The investor didn’t close their position, and they aren’t monitoring their screen. If the market rise or fall quickly, the trader stands to miss out on plenty of money, or see their whole account evaporate should the market change directions. Without a stop loss or take profit, the investor is at the whims of the market movements. That doesn’t make for very good business, nor trading.

Get Used to a Demo First
The good news is that forex demo accounts are usually based on the same high-tech software that forex brokers use for their real money accounts. Thus, investors can familiarize themselves with a top-quality platform while also familiarizing themselves with the market.

They can practice reading trends, or find new ways to spot profitable trades. Alternatively, investors can take the time to see what each indicator does and see how the market movements affect its reading. Because demo accounts do not use real money, even long-time, successful investors prefer to test new strategies and new ideas in a demo account before adapting the strategy to real money.

If demo accounts are good enough for the professionals, they should be good enough for new investors, as well.

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