ENDS SOON! Get 25% off our ACCREDITED Training programme ! Use promo-code: testimonial321 CLICK HERE

×
×

SITE NAVIGATION

QUICK LINKS

Learn to Trade

What Forex Trading Software Should I Use?

By Rob on November 29, 2013

Reading Time: 5 minutes

So we’ve made the decision to trade and tread the pathway for maximum profit potential. But in order for us to do this we need forex trading software which gives us access to candlestick pattern charts so we can look for tradable opportunities with high profit potential. But with so much choice out there, choosing what forex software to use can often be a daunting task.

By keeping up with the story of the buyers (“bulls”) and the sellers (“bears) told by our forex trading software, we are able to identify opportunities either in advance of the occurring or, sometimes, in the moment.

However, we have to be in the game to win it. Imagine not looking at the chart for a week only to realise that the great kahuna of the year has set up, run and is heavily in profit. The only problem is that you’re not in it! Does this sound familiar?

Our forex trading software package will be our most frequent port of call, so you’d better get on with them! They will show us if we have a trade set-up based on our forex strategies and when to trade it. But perhaps more importantly, our forex trading software will tell us when we should simply be sitting on our hands, staying out of the market and preserving our money.

What Forex Trading Software Should I Use?

forex trading softwareFor us Lazy Traders, the answer is simple: any forex trading software package is fine providing they give you access to the hourly, daily and weekly timeframes to as many currency pairs as possible. But you don’t need live data feeds, squawk boxes, magic indicator systems or any of those gizmos and gadgetry! Or, at least, unless you had any other plans! We don’t need any of that. Sacre blue! Nor does the selection of instruments have to be limited to currencies as you will soon discover that Lazy Trader forex strategies work in all markets. Foreign exchange just happens to be our preferred choice.

All we need is the ability to look at price action on the hourly, daily and weekly timeframes.  They’re the only timeframes we use and, as technical traders, it is our job to simply trade what we see – not what we think. Remember that old chestnut? We look at the charts with provided by our forex trading software to assess the probabilities and nuances of the price action on the chart over and above what news and fundamental data releases are predicted to be.

There is no magic bullet

Many spend an unnecessary amount of time over complicating the matter of charting and often end up spending hundreds, sometimes thousands of dollars on some over-priced “magic bullet” Forex trading software programme or charting package. You don’t have to be one of them.

The good news is that to could quite easily engage in mirror trading. This is where you copy an automated trading software. Yet you can do so having seen this software’s investment performance rather than being promised something new and shiny which doesn’t do the job.

There are many charting software companies out there competing for your custom and abundance of seductive sales copy out written to draw you in. No matter what they claim to offer, all you need if the ability to see price action on the daily, weekly and hourly charts on as many currency pairs as possible.

The Free Forex Software Option: Meta Trader (MT)

MetaTraderPlatformFor a charting package that doesn’t cost so much as a dime, Meta Trader (4) is one of the most functional forex trading software packages available today with the flexibility it gives you. You have the synergy of being able to analyse the market and trade off the same platform and you are able to import expert advisers (EAs), indicators and pre-configured systems. Furthermore, you can back test strategies and simulate the market by using the bar-by-bar replay feature. The data feed will be live and the selections of instruments you can both analyse and trade will reflect the markets offered by your broker. Unfortunately if the instrument is not offered by your chosen broker to trade, you will not have the option of being able to even look at it on the charts.

It is also worth bearing in mind that the data will be based on the broker’s prices and they may fluctuate from broker to broker. While you can instantly download it for free directly from your chosen broker, you can start off with a demo account and open a live, funded account once you get conformable with using it.

Paid For Forex Software Alternative: eSignal

eSignalLogoE-Signal has a highly intuitive interface and harnesses efficient functionality with its pre-installed indicators and expert advisers which can be instated on the page easily in as little as two clicks. Users can toggle between instruments quickly and can also edit the look and feel of the interface, which is fully customisable. You may still be wondering though why anyone in their right mind would want to actually pay for a charting package if they already have access to a free Forex trading software package. I don’t blame you! Let me explain why…

While free Forex trading software programmes like Meta Trader will provide you with your broker’s interpretation of the market (ie: their prices) the paid for charting software packages such as eSignal will, as a general rule, provide you with composite data instead.

This means that they pool together and amalgamate data from multiple banks and institutions rather than merely limiting you to one source, or the prices broker is telling quoting you. It therefore gives you a wider and, in my opinion, a fairer, perspective of the market. E-Signal case have over 100 data contributors whereas a user of Meta Trader will only have one (if downloaded from their broker’s website).

Why the delayed feed is more cost efficient

As we trade the higher timeframes, we are able to benefit from the cost-savings that having a delayed feed will bring us. Access to all of the currency pairs with a delayed feed (of only 15 mins) will cost $39.95pcm – a fraction of the $190pcm price intra-day traders have to pay for their live feed. Told you trading end of day has many benefits – keeping our business costs down is one of them! Both prices also include access to commodities data. However, it’s worth mentioning that the forex trading software package, eSignal does command a higher price if you would like to view additional instruments.

There is absolutely no point in having a live data feed unless you plan on trading intra-day and this is something we Lazy Traders stay away from as we are only concerned about trading the daily and weekly charts…when the markets are either dead or closed!

The Best of Both Worlds

I’ve given you both eSignal and Meta Trader as examples of both free and paid-for forex trading software packages as they just happen to be the ones I use. Yes, I do use both so that I’m able to get that extra perspective in the market. So, it’s for that this reason alone that I recommend that you use both too. However, it’s not compulsory – it’s just an added benefit.

The reason is simple and it’s something I’ve touched on before; Meta Trader will quote your broker’s prices and eSignal will quote the mean price from over 100 data contributors. Because eSignal’s data is therefore far more representative and objective, it’s always useful to know of any major discrepancies by comparing what the Meta Trader charts say compared to the equivalent chart on eSignal. Yes, discrepancies do happen! If they do, it’s a great way to keep your broker accountable.

The following two tabs change content below.

Rob

The Lazy Trader is a publishing brand dedicated putting the fun back into finance, presenting powerful wealth creation strategies for a better world.

FEATURED ON

About author

Rob

The Lazy Trader is a publishing brand dedicated putting the fun back into finance, presenting powerful wealth creation strategies for a better world.

Leave a Reply

Lazydev Book cd