Leveraging The Hidden Power Of Trading Platforms
Forex trading has evolved over the last decade. Today, it has become incredibly accessible as just about anyone can trade. Beginners, however, may find the market a little overwhelming as they can’t decide on the amount they want to risk, whether to engage a forex broker or the currency pairs to trade.
The introduction of trading platforms has particularly made forex trading easy as it provides the much-needed transparency. MetaTrader4 is one such platform and it has become a favorite to hundreds of brokers in the world.
In fact, the forex market recently adopted MetaTrader4 as the market standard. MetaTrader5 is the newer version of the MetaTrader4 that comes with lots of great features; more technical indicators and time frames.
Users also have complete access to all their trading via the web while monitoring all aspects of the market from anywhere. While the software makes excellent tools for forex trading, users should learn how to leverage the hidden power of these trading platforms.
Here’s where to start:
Select a Compatible Trading Technique
Your goals determine the kind of trading style you are going to use. Each trading style requires a different approach, risk profile, and attitude. If you are the type to get jittery when in an open position in the market, consider day trading.
However, if you have additional funds, which you speculate will appreciate in the next few months then you should become a position trader. Your trading style should be compatible with your personality.
George Soros, a renowned forex trader, is remembered for the enormous profits he made when he took advantage of a short position in pound sterling.
Be Consistent with the Selected Trading Methodology
While the MT4 & MT5 shortcuts guide provides a great deal of convenience and flexibility when trading, the decision to execute trades lies with you. You need to have adequate information on whether to make a trade or exit. Some traders rely on information about the fundamentals of a company while others use technical analysis.
Stanley Druckenmiller is another successful forex trader who considers Soros a mentor. He owes his success to following the philosophy of building long-term returns by preserving capital and making trades when they seem profitable.
The MT4 and MT5 provide advanced charting capabilities that allow traders to analyze the technical features of the market simultaneously.
Note that while chart patterns present trading opportunities in the short-term, a company’s fundamental drive is in the long-term. Whichever methodology you use, be consistent and ensure that it is adaptive to the changing dynamics of the forex market.
Determine an Entry and Exit Time Frame
The numerous sources of trading data create conflicting information when viewing charts during different timeframes. What could be a buying opportunity on the weekly chart may, in fact, turn to be a sell signal on an intraday chart.
As such, if you are using a trading strategy based on a weekly chart and using a daily chart to determine when to enter a trade, it is essential to synchronize the two graphs. If the weekly chart is presenting a buy signal, wait until the daily chart confirms a similar sign.
Back-Test the Selected Trading Strategy
The use of historical data and finding a strategy that works does not always guarantee profits in forex trading. Most traders rarely backtest the strategy on historical data and only make spontaneous trades. This lack of due diligence leads to insatiable losses a few month or years down the line.
Testing a trading strategy on historical data helps determine its success rate. Trading strategies fall in and out of profitability, hence the need for visual back-testing such as going through charts, using the MT4&MT5 shortcuts guide, and applying new techniques to the data on a selected timeframe.
Why Use MT4 and MT5 Platforms
The feature enables traders to tailor the platform to their trading needs. It includes the ability to develop your Expert Advisor and technical indicators using the MT4’s proprietary MQL programming language. Note that the code used on MT4 may not be compatible with MT5 if you are considering switching from one platform to another.
It makes a notable feature on the MT4 feature portfolio. The advisors help traders to automate their trades using a customized EA that fits the trader’s needs. Additionally, its success is based on algorithmic trading.
Advanced Communication Tools
The tools allow brokers to post messages and communicate with other traders in real time. It rids of the need for long, email threads, providing an easy trader experience. The MT5 allows attachments to the messages.
Traders can view important account information that includes the trading history, account balance, access details, and password information from the platform interface.
Coupled with MT4 & MT5 shortcuts guide, the feature also lets users arrange the charts and windows for each profile in a way that is easy to follow. It is possible to set up each market in its profile to quickly switch between them. The MT5 is integrated with the centralized trading exchange, letting traders make forex trades, commodities, and stocks.
Successful forex trading isn’t just about using reliable trading platforms or leveraging on MT4 and MT5 shortcut guides. While the systems are designed to change with dynamics of the forex market, over time, the systems get accustomed to a trader’s consistent trading strategies.