Just as a farmer needs the right tools to plant crops, as a trader, there are three crucial tools that you need to become profitable. I’m going to share my personal experiences and guide you through these essential tools.
1. Trading View: The Modern Charting Tool
Most trading brokers provide their own charting software. However, the charting software most brokers use is not ideal for achieving trading success. From my experience with different brokers, the most significant drawbacks are their software’s is not web-based (needs installation), inadequate historical data & inability to save ones work etc.
I discovered the ultimate solution is a website called TradingView. It’s not a broker but a platform that provides a robust charting platform for traders. Various brokers provide their data to Trading View, allowing you to do your analysis with their tools and place trades with your broker.
You can set alerts, create and test different strategies, and utilize a wide range of indicators. But the cherry on top is an option called bar replay, which lets you test how your strategy would have worked in the past.
You can sign up for it for free here: www.denniskirui.com/tview
2. Position Sizing Calculator: The Savior from Blowing Up Your Account
My journey to discovering the importance of a position sizing calculator started when I risked ten times the amount I intended due to a miscalculation in lot size. It was a wake-up call, and it led me to the second tool every trader needs – a position sizing calculator.
This tool will help you to calculate the correct lot volume or size you need for each trade, a critical step in managing risk. One online tool that does this efficiently is the position size calculator found here: www.cashbackforex.com/tools/position-size-calculator
3. Trading Journal: Your Personal Coach
During my first few years of trading, I didn’t track my trades. I’d spot an opportunity, place a buy or sell, but never kept a record of them. This habit left me repeating my trading mistakes over and over again.
A trading journal became my third essential tool. It’s as simple as an Excel sheet where you keep track of all your trades with key details. This practice makes it easier to identify and rectify mistakes, improving your trading over time.
Check out the video above for the columns and data you need to capture in your Trading Journal.
Take Your Trading to the Next Level
Are you excited to start trading with these tools? I’ve created a Free Training on the “7-Steps to Financial Freedom through Trading”. This training provides a step-by-step plan on how to start trading the right way.
To learn more about “How you can Start Trading for a living,” sign up below for my Free Training on the “7-Steps to Financial Freedom through Trading” below: