CFD Trading Tools

CFD TRADING TOOLS

No matter what you trade in the financial market. If you trade, you must be armed with the right trading tools to make your successes achievable. Our CFD trading tools are crafted for two reasons. First, they are for the ability to trade in CFDs and second, to make every trade for the investor enjoyable and profitable. Not having these CFD tools is like going to war with no weapons. Thus, our CFD traders are provided with the appropriate tools for the best results.

Many traders come to trade with tools, but not all tools do the same jobs and bring the same results. This lack of knowledge of the tools and the market is the reason many traders choose the wrong tools. Because CFDs are split into different categories, a tool that works for one asset class might not work for the others. Let’s look at this example; the guidelines which concern stock CFD prices are will never be the same in the case of cryptocurrency CFDs. And the same can be said as well for cryptocurrency CFDs in relation to commodity CFDs. What makes it even more interesting is that within a certain asset class differences could occur. Bottom line when dealing with CFD trading tools, “one-size-fits-all” does not apply. Yes, you will come across a tool that works fine through different asset classes, but, you will always have a tool which must only be applied to one type of asset.

CFD trading tools are split into what are known as specific tools and generic tools. Let’s get to know these two groups of tools.

GENERIC TOOLS

Generic CFD tools are like the Swiss army knife of tools because they can be used throughout all the classes. These tools include:
a. Interactive charts
b. Pivot point calculators
c. Trend lines

What makes this possible is because these are all tools used for technical analysis, and technical analysis tools work just the same no matter the asset.

Charts are engaged to obtain price data, plus they can also act as an opportunity for the execution of technical analysis. Pivot point calculators are used to obtain daily levels of support and resistance for all CFDs. Movement lines are used to specify support and resistance. These tools can all be put into operation on any one chart for any asset as shown below:

SPECIFIC TOOLS

Specific tools are tools which are made to be used for a specific CFD asset class. They should not be operated throughout all the asset classes. A great example is a tool which prepares a schedule of earnings reports for organizations estimated in the US markets. Here, the assets is specific to stock CFDs.

Earnings schedule (courtesy of Nasdaq.com)

The earnings calendar can be used to identify times of release for earnings reports. Because stocks don’t trade beyond the trading hours, investors can use stop entries on one of the two sides of the calculation to pick an unexpected break in price if the earnings exceed expectations (upside trigger) or upset the market (downside trigger).

Another tool explicit to the forex market is the financial news calendar. This calendar lists the schedule of economic data that display the wellbeing of various segments of the economies exhibited.

Forex news calendar (forexfactory.com)

The discussion of CFD trading tools will continue in the second part of this article.