Guide for Effective Forex Trading on MT4
by Arina Smith Finance 19 February 2019
Forex trading is a complex process that can sometimes be overwhelming. The environment in which you execute your trades should ease everything and act as a means to help you succeed. Ever since it was launched in 2005, the MetaTrader4 platform revolutionized the trading world. Now, it is a standard of professionalism for online brokers and the top choice of millions of users. Find out more about it, its pros and cons, and how easy you can use it.
MetaTrader4 (MT4) – the most popular trading platform:
Developed by MetaQuotes Software Inc., the MT4 platform was released in 2005 and changed the trading game completely with its unique features. The trading terminal can be downloaded for free and most brokers make it available in all formats (desktop, PC, mobile). Moreover, it gives you access to all financial markets, including forex, commodities, and even the cryptocurrency market. When it comes to the tools, the platform is geared with instruments and resources that enable users to analyze prices movement in real-time, on advanced charts; place and manage trades, and utilize automated trading techniques.
Here are the main tools of the MT4 platform:
- Customizable and interactive charts with nine periods.
- Analytical objects and built-in indicators.
- The possibility to add indicators or auto-trading systems (Consultancy Experts).
- The possibility to manage multiple accounts from a single master account.
- Access to financial news & alerts.
- The possibility to zoom in/out of the charts without altering the time frame.
- Drawing tools like price channel, Fibonacci retracement, trendline, and image labels.
The pros and cons of using the MT4 trading platform:
Although the MT4 platform encompasses a lot of tools and advanced options; it is user-friendly, intuitive, and easy to use, which makes it perfect for both novice and professional traders. This is an advantage that not many other trading platforms have and it’s important because a clear and breezy interface can make the difference. Another essential advantage this platform has is that pretty much everything is customizable, including its color and aspect. This contributes to the quality of your trading experience and it helps you apply your strategy and trade effectively, without wasting any time looking for certain tools. Did we mention that the MT4 is free and available in all languages? In addition, depending on the broker you choose, it can also be used on all types of gadgets, including mobile, tablets, and PCs.
The reputable trading platform has its share of disadvantages. This list is shorter and less significant than one of the pros, but it’s for the best to know what it’s missing. For starters, it doesn’t provide you with level II market data, which shouldn’t be a major inconvenience, as level I market data usually offers enough information. Other minuses are the absence of a full-size tick chart; the fact that you can’t close all open positions with one click; and finally, on a mobile device, due to the size of the display – the panoramic view isn’t ideal. That said, you better examine your options thoroughly before you start putting the pieces together for taking action. For succeeding in trading, a great duo between the trading platform and the broker is very important. Find everything you need to get started on this guide by FX Australia.
Effective trading on the MT4 platform – Brief Guide:
You can download the platform directly from MetaQuotes Software’s MT4 website or through an online forex broker. The setup takes only a few minutes! All you need to do is pick certain options which will appear in a pop-up window that shows the installation progress, in order to set some default parameters. After a successful installation, you need to open an account and begin your trading journey!
Think of MT4 as a playground, where you make your own rules and arrange the pieces to your favor. In other words, customize everything to help you reach the best results! Here are a few tips:
- Arrange charts and other windows, and save them as templates for later use. To save chart groups click on the Profiles icon and ‘Save Profile As’.
- Plug-in Expert Advisors to track great trade opportunities.
- Add chart objects to help you. To do this, click on the Insert menu, choose the desired object and the area on the chart where you want to place it.
- Add indicators and customize their parameters (Insert menu – Indicators).
- Set up 4 different time frame charts of a single currency pair on the same screen. You can do this by opening 4 charts of the same currency pair, setting the time frame gradually, and by clicking the Tile Windows in the Window menu.
Ultimately, the most valuable tip is to start with a demo account! This way you will get familiar with the platform and get the chance to try out different forex strategies.
The MT4 is used by tons of traders and is the trading platform offered by the most prestigious online brokers. Its interface, advanced tools, and the possibility to customize every feature are some of the characteristics that make it so desirable. If you’re planning to become a forex trader, then there’s no doubt you should begin your adventure using the MT4 platform!