The 3 Most Important Tools for a Trader

Forex Education, Trading ToolsAs a trader, you’re going to need tools. I’m going to briefly hit the obvious. Obviously, you’ll need a computer and a broker. And of course you need a brain. 😉 So, let’s start from there.

1) Training

Ha! I’ll bet I caught you off-guard with that one. Training is THE MOST IMPORTANT trader’s tool. You might be able to teach yourself almost anything – including trading. But I’ll let you in on a little secret: It will cost you MUCH more to proceed without training than it will to find a good professional trading training company with a good reputation and good track record and start from there.

A short anecdote seems appropriate here. All my life I’ve been able to teach myself all sorts of things; Programming, whitewater kayaking, photography, backpacking, rock-climbing and so on. So I thought I should be able to teach myself trading. Well, after five years and three blown trading accounts, I finally sought professional help (I don’t mean psychiatric help ;)) and it took about 3 months for me to get it. If I had taken half of the first trading account and applied it to training, I would have done much better in much less time and for much less cash. You can find excellent training the same place I found it: right here.

2) A Trading Plan

I know this may sound like a worn out record at Winner’s Edge Trading. But there’s a reason for that. All of us here believe that a trading plan is the first step to becoming a profitable trader. You wouldn’t start building a house without house plans. You wouldn’t start a business without a business plan. Trading is a business. It needs a sound business plan. Your plan should include what you are going to trade, what strategies you will use to trade, details of the strategies you will use, what you will do with your profits, etc. As a new trader you may not have any idea how to develop a trading plan or what it should include. If you need help, check here.

3) A Trading Strategy

And the third most important tool you need for trading is a trading strategy. You can’t just enter a trade because it “looks like it might go up.” A trading strategy describes under what conditions you will take a trade, how much money you will risk, how you will enter the trade and how you will exit the trade. A good trading strategy must be well-tested to determine its profitability. As you progress as a trader, you may find that you will want to develop your own trading strategies. That’s good. But as a new trader, you will want to use an already developed trading strategy. Winner’s Edge has quite a few strategies available in our blog. You can find them here.

Three tools you can’t do without. Have a great day!

 

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Winners Edge Trading was founded in 2009 and is working to create the most current and useful Forex information and training available on the internet.

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