Every career requires a set of precise essential tools, and trading is no exclusion to this rule. Therefore, if you are considering the perks of trading in the crypto market, you should first be sure you have everything you need to succeed as a trader. Whether you are hoping to trade crypto by purchasing Bitcoin in Kenya or other regions, or you are considering trading in the lucrative cannabis shares market, most trading essentials remain the same. To best kickstart your journey as a profitable trader, you should ensure you have all of the following.
1.Trading Platforms And Accurate Charts
You won’t be able to trade without the help of a trading platform. There are quite a few out there, so it is best to evaluate your options carefully to determine which platforms boast low subscription fees and exchange fees. The right platform can massively impact your ability to be successful as a trader.
Once you have found a platform, you should find accurate charts. The correct charts will help you see exactly what’s happening in the markets, which means your decisions as a trader can be well calculated rather than hit and miss assumptions.
2.Top-Quality Laptop Or PC
A high-quality laptop or desktop PC will be your next essential. Even though you can trade with slower processing systems such as the infamously slow Pentium creations, it is best to invest in a faster piece of tech that will maximize your experience and enhance the chances you are successful. When it comes to trading volatile currencies such as crypto, you will likely need to handle transactions quite swiftly, which is why a slow laptop or PC may hinder your abilities.
3.Trading Journal
Next, you will need a journal to track your progress. You can use a digital journal, spreadsheets, or a traditional paper book, depending on your preferences. Even though many traders may assume that a journal is not a necessary tool, just as any self-employed professional would track their income, performance, and other work-life aspects, traders should do the same.
The effort will enable you to determine areas that may require improvements. You will be able to note trading mistakes and create a strategy from learning through your own unique experience. Therefore, even if you assume a journal would simply be a time-consuming effort, it will help you improve and succeed.
4.Risk Capital
While several platforms will let you start trading with a significantly small amount of money, it is best to gather up some risk capital. This is because your very first attempt is not likely to be a massive success. You will need to make careful decisions and use your investment as a tool that encourages you towards success. Without a decent amount of risk capital, you won’t entirely be able to learn real-world trading or take advantage of substantial profits. As all investors know, the more significant the investment, the bigger the return, and the same is relevant to trading in any market..
5.Economic Calendar
All traders should be aware of major economic events that could impact the assets they are tracking. In particular, it is crucial for forex traders to always know what is going on in the world in order to make productive trades, and prevent major losses. A simple economic calendar is one of the most useful tools that every trader should be checking on a regular basis. You can find a great calendar included in the BetterTrader app, which has every significant market-moving event, and also allows you to set up convenient notifications to always stay ahead of the game. Economic Event Calendar is definitely one of the essential tools in your trading kit.
6.Reliable News Source
It seems simple, but having a reliable news source that reports news as quickly as possible can make a huge difference in your trading. Most traders get their news from Bloomberg, CNBC, and The Wall Street Journal’s MarketWatch. Bloomberg is a great option thanks to its great combination of television news, online resources, and mobile apps, but other media outlets can be very useful as well. Use whichever one that you are most comfortable with, but make sure that you have at least one reliable source, if not more.
7.Volatility Calculator
The volatility calculator can be a helpful tool when trying to identify assets that you want to focus on closely. It allows you to measure the volatility of anything you might want to trade, over any given time period. Whether you are looking for a highly volatile market to generate high returns, or you want to avoid the dangers of high volatility, you can use a volatility calculator to find a suitable asset to trade.
8.Market Sentiment Indicator
A sentiment indicator can be another good tool to help with your trading decisions. This tool shows the general direction that the market for a particular asset is moving. It will tell you the proportion of investors that are holding long and short positions for each asset. Although on its own, this is not a perfect way to predict price moves, it is still useful and can help you to better see a picture of the market as a whole.
