MetaTrader 4 is a powerful forex trading platform that offers plenty of features to beginners. This platform provides two core services: forex trading solutions and financial markets analysis. It can be a good place to start for those who want their forex trade orders to operate automatically.
MT4 has a user-friendly interface and can be easily accessed from a browser, desktop, or mobile. It’s easy to use due to the automated trading feature. Users can start learning how to use the platform by setting up a free account and starting with a demo account trading platform tab. Plus, there are many automated trading indicators, expert advisors (EAs), and strategy testers to name a few. These and other utilities can be useful for orienting beginners.
Keen on understanding all the basics you need to get started? Then don’t go any further! In this article, not only would we like to take a look at MT4 to explain to beginners how it works but also provide tips on how to improve trading skills for long-lasting success in the Forex market.
So, it doesn’t matter whether you are a beginner or a proficient trader. In any case, you can find something useful in this guide!
Quick introduction in MetaTrader 4
MT4 is an electronic platform that many online retail foreign exchange speculative traders use to place their trading orders automatically. The Platform was developed and first released in 2005 by Metaquotes Software Corp. Since that time, an improved version of MetaTrader 5 was released in 2010. Despite this fact, MT4 remains the best trading platform due to its unique features that have set it apart from similar sites.
These features include but aren’t limited to:
- technical indicators;
Novice traders can trade on the platform and even contract for differences (CFDs) on bonds, commodities, cryptocurrencies, and shares. Users can use the in-built programming language for MT4 for creating scripts, custom indicators, and EAs there.
The most significant features of MT4 for beginners
The most important features of MT4 that can be useful for beginners are the following:
Traders can use 50 technical indicators on MT4 for analyzing market trends. Relative Strength Index (RSI), Bollinger bands, and Moving Averages are among the most frequently used ones.
It’s also possible for traders to create their own custom indicators or use indicators sourced from independent developers. A wide range of order types can be used for trading different assets.
What matters the most is that MT4 is available through mobile apps and web-based terminals. Thus, traders can access their accounts anywhere and anytime.
There are different timeframes on the MT4 fx trading platform for analysis. They include:
- 1 minute
- 5 minutes
- 10 minutes
- 30 minutes
- 1 hour
- 4 hours
- 1 day
These timeframes allow traders to analyze the situation on the market to make more accurate and informed trading decisions. Mt4 is considered the best day trading platform and for a good reason.
The charting interface allows traders to analyze averages when deciding to exit or enter a position. The whole essence of the MT4 is the analysis of technical aspects and simultaneous market. That is what makes it the best forex trading platform for all users.
By using charting tools, traders can create charts for market analysis as they help to identify opportunities and extract trading insights. Built-in drawing tools allow users to get comprehensive insights from the given trading data.
Simply put, charting tools help traders understand the current Forex supply and demand, and the mood on the market.
Access to the historical performance of the assets
MT4 provides access to historical data. That way, traders can analyze markets more thoroughly to create their strategies in compliance with the historical price data. It’s also possible to get historical data from other sources or import them.
Press “Tools”, then “History Center”, choose the market, and find the currency pair you want to check.
Trades on MT4 are executed through one-touch transactions. This feature provides the possibility to open and close positions with one click. It makes perfect sense for those traders who used to trade in the fast-moving markets.
To activate one-click trades, go to “Tools”- “Options”, and choose the appropriate feature. Here’s an example:
Copy trading and signal feature
MT4 allows copying trading and signals. This applies to the trading strategies and positions of other traders on the market. Copying trading and signals comes down to a few clicks:
- Go to the “Signals” tab at the bottom of the page. Take your time and choose the right signal provider;
- Select an appropriate trading strategy that fits the trader’s needs;
- Subscribe to the signal and customize trade parameters. It is generally recommended to start with the default settings if you are new to copy trading on MT4;
- Review trade statistics and adjust position sizes;
- Unsubscribe if you want.
MT4 works seamlessly either on Windows, Mac, or Linux. There is also a possibility to download the mobile version of this trading app from Play Market or AppStore. There is no problem with accessing MT4 WebTrader directly from a browser as well.
Such compatibility enables MT4 to apply to Windows OS users for all services such as:
- buying and selling financial instruments;
- tracking trade history;
- monitoring the account.
All these can be handled through a single click.
How to start trading?
Forex trading is about buying and selling currencies. The foreign exchange market is open 24/7, five days a week. In order to start trading there, one needs a trading account with a broker that uses MT4 software.
Not only does this software allow trading forex but also commodities, shares, bonds, and indices to name a few. It’s also the best crypto trading platform at the moment.
Here are the steps a user should take to start trading the Forex market by using the MT4 platform:
- Once you’ve downloaded the software and passed registration, you should launch the program by using your credentials. After that, you can get access to the main screen and start placing orders;
- Select a currency pair in the ‘Market Watch.’ They are present on the left side of the MT4 dashboard. Click on the chosen currency pair and press ‘New Order.’ You can also create a new order by simply using the ‘New Order’ tab on the top section of the dashboard;
- By clicking on the ‘New Order’ button, you can open a new trading position. Traders input such details as volume, order type, and stop-loss limits;
- This step is the most important one. At this point, traders are constantly monitoring the markets and the movements in the chosen currency pair. Based on the current market situation, your plans and goals, you have to decide whether or not you want to keep the position open at this very moment;
- Close the trade. Open trading positions can be closed automatically when stop-loss/ take-profit limits are reached. Or, the trader can close them manually. In case of later, you should right-click on the open position and choose ‘Close #…’ to do so manually. EAs also allow closing orders automatically.
A few tips to improve the trading skills
- Pay attention to trends and technical indicators. By understanding the market’s movements, you can make more profitable trades;
- Track your trades in the journal. It’s a good way to identify the areas for improvement;
- Have a plan on how to execute the trades. A trading plan won’t get you to fall into the trap of impulsive decisions that lead to losses in most cases;
- Set goals to measure your progress and stay focused. Make sure your goals are realistic;
- Have a plan on how to deal with the risks involved in the trades. Don’t forget to set stop losses to prevent major money losses and limit your position size in the highly volatile market;
- Stay organized as it will help you make wise decisions and avoid rush ones;
- Learn from mistakes and avoid making the same in the future;
- Be patient and stay focused on your goals to see the desired results;
One must agree that MT4 is the best trading platform for beginners. It helps newbies to understand the basics and start their careers as Forex traders. What is the advantage of using MT4? It can be just as useful for both novice traders and seasoned pros. That means beginners gain the knowledge and the experience they require at this point, while pros can continue using the advanced features of MT4 to execute more reasonable trades.
However, it is important to keep in mind that MT4 forex trading can be quite risky just like any other business. Novice traders should follow precautions and make sure they understand market dynamics and principles of risk management.
FXCI offers access to this foreign exchange trading platform. We are the team that can help you to sign up whether for a demo or live account to try your hand in forex trading!