Entering the crypto industry might make you feel like you’ve found yourself in a maze. Some paths include extensive analysis and professional advice that you don’t understand yet. On others, you’ll find social media hype with coins that are allegedly tempting investments. From a beginner’s perspective, it’s hard to find your way around.
The first thing to do is to look for a verified source of information. With years of experience, Trading.biz is an excellent choice for how-to guides and other valuable information. Apart from that, you can benefit from using essential tools that can help identify the right trades, conduct detailed analysis, and improve your strategy overall. Discover the top five free tools that beginners should use to make smarter decisions!
Economic Calendars for Market Awareness
An economic calendar is a detailed schedule of upcoming events that can affect markets and traders — employment reports, interest rate decisions, data regarding inflation, GDP announcements, etc.
Many traders underestimate economic calendars because they find them too basic, but no investor has the luxury of ignoring them. Let’s say that there’s an important Fed announcement in several hours. It wouldn’t be wise to place a trade before you hear the news. The announcement could cause a significant price change, which disrupts your entire strategy.
Most economic calendars are free, and it’s all about finding ones with the most extensive detail. Creators usually apply color-coding to ensure you can easily find your way around different event types. They might signal important events with the red color.
From a user perspective, economic calendars are very useful for daily and weekly trading preparation. It’s best to develop a daily habit of checking the calendar since it can help enhance the timing of your trades.
Trading Calculators for Smarter Position Sizing
Sizing your positions and managing risks are two crucial things to survive in the online trading industry. That’s where trading calculators come into play, and they should be an essential tool throughout your investment career. Some calculators to consider include margin and pip calculators, as well as position size formulas.
The general rule is that you should avoid risking more than 2% of your entire trading budget with a single position. If you use a calculator, you can get the exact details regarding your entry and stop-loss levels. Instead of doing everything manually, the calculator will automatically display the amount to invest.
The main benefits of trading calculators include teaching yourself to stick to exact numbers from the beginning, as well as trading without emotions. You will be aware of any risks involved and ensure your losses remain under control.
Technical Analysis Platforms with Real-Time Charts
Source: Pexels
Although you are a beginner, explore real-time charts as soon as possible. If you visualize price action, it will help you understand the common patterns better. Fortunately, many free charting tools offer useful charts that are easy to analyze and provide valuable information.
TradingView is an excellent example of a platform with a user-friendly interface and accurate price charts updated in real time. Some available charts include the Relative Strength Index, moving averages, and other indicators. You can adjust parameters to check different timelines, which is great to learn about how prices change over time.
Demo Trading Accounts
If you want to practice trading, there’s no better way than registering a demo account on a trading platform. It is virtually identical to one with real money. The only difference is that you use virtual cash instead of actual cash.
A demo account isn’t only about trying the platform and seeing if it fits your preferences. It’s also great for testing different strategies and trading options to see which is in line with your expectations.
For example, an online trading platform would give you $10,000 in virtual money for your trading endeavors. Set a time of one or two weeks and approach it like real trading. It will help you build confidence while assisting in developing an optimal investment system. You can use demo accounts to try different markets, see and analyze trades, and adapt your approach. Once you enter the real market, you will have a strategy ready, and adaptation time will be minimal.
Pro-Level Signals & Strategies
Many platforms offer copy trading features, which allow users to see how experienced investors act in the market. You can replicate their moves to try to improve your strategy. The idea isn’t to follow someone blindly. Rather than that, you should learn about how they trade and apply the same ideas when developing your approach.
Apart from copy trading, you can also rely on expert insights and other pro-level signals posted in strategy hubs. The community is eager to share their tips, but that doesn’t mean they will always work or that they work for everyone.
The idea of analyzing signals and strategies is to focus on your growth rather than looking for shortcuts. While reading tips, consider whether they make sense. Breaking down a signal with rational reasons is a good sign that the suggested trade could make sense. Don’t hesitate to observe and consider why trade suggestions could be wrong. While challenging them, you will learn a lot about the market.
Level Up Your Strategy in Minutes
As a beginner, you might think that only premium tools are worth your while as a trader. That can’t be further from the truth because free utilities can get you a long way, too. An economic calendar helps you get the right trade timing. With a demo account, you can test different strategies, and community signals could assist in funding the right investment opportunities.
Finally, analyzing technical indicators and using trading calculators helps optimize your positions. It’s all about developing consistency and making trading a regular habit. With a bit of time and effort, you can become a lot better at understanding the crypto market. As a result, you will feel much more confident despite being a beginner.
Related
