Fundamental Investment Tools for All Traders
Dec 20, 2021
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Like any other profession, trading and investing require professionals to use tools for daily transactions and decision-making. Without these tools, investors and traders would make blind-sighted decisions and rely on luck to make a profit. So, what tools do investors and traders use in their day-to-day activities? This article takes you through these tools and how they benefit the investor or trader when making crucial decisions.· Financial Calendars
It may sound a bit overboard, but you'd be surprised how many transactions take place in a day. The daily life of an avid investor or trader can quickly become a blur if they do not note down what happened on which day. An economic calendar keeps track of all critical events that drive financial decisions. These calendars play a crucial role in investor success because they help investors make better decisions aiding in their eventual success. Lucky for investors and traders, economic calendars are available on many trading and investing sites and offer access to comprehensive data. You can get one from investing.com, and the best part is they are absolutely free.
· Investment Tools
Investors deal with mathematical problems that the investor must solve within a split second. These math problems are often too complex to be handled without a dedicated calculator. On some occasions, investors deal with information. An investor needs to know what is happening in the market in real-time, which is why apps have taken center stage in investment.
· Trading Apps
Many apps in the market are designed to help the investor stay updated and informed. Applications like Robinhood have made it easier for investors to purchase and sell stocks or shares. Users are usually not asked to pay to utilize these applications, making them cost-effective. Apps have revolutionized the way investors trade and lead their daily lives; there is no doubt they are here to stay. A word of caution, mobile applications can be corrupted by malware intended to steal your data, so it is essential to error on the side of caution while downloading any new applications to your device.
· Calculators
Calculators are a big part of how we all solve math problems. Most industries have unique calculators designed to solve industry-specific math problems. Investment calculators vary in design too. Some calculators are free to use, while others come in packages that you have to pay for. Because not all calculators are the same, try using different investment calculators to see if they all give the same answer before deciding based on the solution.
· Trading Calculators
On the other hand, traders use calculators to generate retracements and extension values in both up and downtrends. A trader is free to enter a high or low value of their choice. To a trader, a calculator is instrumental in predicting price targets.
· Other Trading tools
Traders also utilize various trading tools, including currency heat maps and forex volatility tools. A currency heat map is a table that displays the relative strength of major currency pairs, kind of the way a map shows you which parts of the world are hotter and which are colder. This color-based chart is easier to interpret than interpreting numerous numbers on a chart, which is time-consuming. On the other hand, a forex volatility tool generates the daily volatility for currency pairs.