Overview five basic tools for serious traders

The first tool that a trader needs is a trading platform and charts. However, this does not mean that any chart will be good, you need the right ones. This means that you need the New York 5-day charts that you can get here. This is an important tool that you need to have in your toolbar. Because if you do not look at the right charts, you do not get the most accurate or clear idea of what is actually happening in the market.

I know that some of you do not have financial means to purchase the latest laptops or iPads. Thus, you can analyze and trade from a smartphone using the MetaTrader 4 platform application. But I just want to be sure that I do not encourage people to sit all day over their phones because charts are distorted on the phone display, and I personally do not like it.

The iPad would be better than trading with a phone, for example. Trading through a phone is the last option if you do not have other means.

The reason that a Trading Journal and a Spreadsheet are so important is that you need something to keep yourself accountable for and honest about. Trading is a profession of a lone wolf; it’s just you and the computer screen/chart. You will start making trading mistakes if you don’t force yourself to be honest and keep track of your trading indicators. In fact, it’s only a matter of time. Trading mistakes are like a snowball, and they lead to an increasing number of mistakes which ultimately lead to the removal of your account. The Trading Journal/Spreadsheet is similar to the wall that you put between yourself and all these trading mistakes.

It’s a good idea to look at this amount (your risk capital) in the form of a quarterly or annual trading budget, rather than invest all your money from the very beginning. Do not tell yourself: "Hey, I have 10 thousand, and that’s it." If you have 10 thousand, you are not going to invest 10 thousand. Consider this as a hedge fund: do not place ALL your money on your trading account. Try to save on an annual basis. Because it is a tool, and you want the tool to be there when you need it most (for example, when super obvious trade appears). Make sure that you finance your risk capital quarterly or annually, so you always have something to invest. The only way to make sure that the money tool is always there is to soften its distribution.

I put time as the first tool because without knowing the right time to do the trade then you will miss a lot of opportunity for entry and make profit. Time will also give us when Asian, European and New York sessions are open, not all traders are in a time zone with each session so time is a crucial tool for us to make a profit by choosing a highly volatile session.

Trading at home might be better if in my opinion, trading at home will require a good computer, laptop and internet connection to quickly open and close positions. This does not mean you will only be able to do at home, you can trade anywhere and anytime using iPad or smartphone. it’s just using a smartphone or iPad for me less satisfied because it does not have a wide screen. In addition, smartphone also can not provide costumes indicator such as on a laptop or computer.

This journal will help you to remember all your activities in trading so having trading journal is also required. You can make copies of your trades with journals so you can review your trades or you can fix your mistakes in trading by opening and reading your trading journal. You also need to give a screenshot so it will be easier to remember all the trade you have done.

If a trader is going to trade in the forex market or the stock market professionally, he/she will undoubtedly need some set of office equipment and with each stage of the technical progress, the requirements to it change. For example, a Pentium 3 computer, satellite Internet, a telephone line, and a modem was previously required, and just in case, also a mobile phone. And now everything is less complicated due to the spread of the mobile communication network and the cable Internet. Now we need a computer with high performance and random access memory, cable or mobile Internet, and an operating system, so that the MT4 trading platform works normally.

The first equipment is a desktop computer standing in the trader’s office, where no one enters during the trading session, especially children, pets, and close relatives. If necessary, it should be able to connect 2-4-6-9 monitors. This is for those traders who work simultaneously on several strategies and on several trading instruments. And if this is a stock market, then a trader needs to monitor news and related campaigns from this sector.

A laptop. If you do not have a work-room, then you can use a laptop computer, being locked somewhere or hidden under a blanket. Furthermore, if a trader is not a professional yet, he/she can be sent on a business trip, then a laptop will help him/her to conduct full-fledged trading in another city. A trader only has to find a reliable access point to the Internet.

Pocket PC (smartphone, tablet, etc.). It is rather complicated to trade on pocket gadgets, because the elements of technical analysis are sparsely presented, but you can easily open and close positions. But to open them without technical analysis, you must be a fan of pure graphics or classical indicators. If there is a desire to trage in the train or on vacation after a night party, this is the real deal.

Router. If the professionalism of a trader has reached a high level and it is not enough for him to use monitors, then he/she will need several computers. If the trading is carried out by a robot advisor based on statistical information, then the capacity of one computer may not be enough, a router to connect them to a network connected to the Internet will be required.

VPS server. It is necessary to continue working in extreme situations, when everything except the Internet is off and you can set the last order "to stand to the end." And also for the automatic trading with the help of advisors and it does not depend on the Internet disconnection, power outages, or the functional loss of a working computer.