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Getting to grips with the trading world is all about understanding the fundamentals of how trades work while simultaneously learning how to use the various tools at your disposal. With so many variables at play and types of trades to consider, sometimes it’s knowing where to start that is the most challenging part.
MetaTrader 4 is one of the world’s leading trading platforms and is a popular choice with millions of traders around the world, particularly those who are working in forex. Let’s take a closer look so that you can understand what it does, why you need it, and how it could benefit you.
What Is MetaTrader 4?
MetaTrader 4 (MT4) is an electronic trading platform that is used by traders around the world to analyze and assess market conditions, place trades, and manage their investment portfolios. It has been used for more than 20 years and was brought to the market by the developers at MetaQuotes. Their idea was to develop a versatile yet powerful platform that could be used to trade a variety of different instruments.
The platform includes a wide array of advanced analytical tools that are designed to help you draw insights from the market and inform your trading strategies. MT4 is known for its user-friendly interface and accessible nature, both of which make it a viable option for new traders who want to master the fundamentals.
MetaTrader 4 Functionality
Understanding the functionality offered by the MetaTrader 4 trading platform is essential if you want to choose your platform with confidence. Key features that many traders find helpful and highly intuitive to use include:
- Customizable charts that allow you to fine-tune your interface so that it shows you the precise data you want to base your trading strategies on, and all in a format that you find easily accessible
- Versatile drawing tools that allow you to mark charts and clarify your thinking without delay, so that you can react to the changing nature of the markets. Drawing tools can also be used to highlight issues and behavior you are unsure about when seeking clarification from more experienced traders
- Technical indicators can be utilized to provide analytical insights into when market trends are likely to change and the nature of the shifts that are about to occur. Informing your strategy in this way will ensure you make the best use of the real-world data you have access to
- Expert Advisors (EAs) are trading bots that offer automated trading capabilities so that you don’t have to constantly be on the platform to profit. You can set a series of pre-defined rules and limits so that the bot behaves as you would if you were placing the trades manually
While this is a powerful range of features, it’s important to note that MT4 is not a standalone trading platform. To be able to place trades with real money, you need to connect with a broker.
Connecting With A Broker
The good news is that broker integration is quick and easy with MT4 and is something that every broker you will deal with is very familiar with. The MT4 platform will connect to the server your broker of choice uses and take real-time market data onboard so that it can execute your selected trades through the broker.
We can break this process up into a series of simple steps as follows:
- Download the MT4 platform onto your device of choice
- Create an account with your broker so you can trade
- Get the required server information from your broker
- Log in to MT4 and select your broker’s server from the list
- Use the username and password supplied by your broker
Once you have a broker who has got you online, you are ready to explore the full range of options that this highly versatile trading platform has to offer.
A Versatile Trading Platform
One of the major benefits of the MT4 trading platform is that it allows you to trade a wide array of different assets with a single piece of software. Although many choose to use it for forex trading, others also use it for indices and crypto CFDs. Each market and type of trading will have its pros and cons, but the key point here is that using MT4 gives you plenty of space for future expansion. Once you have mastered the tools in relation to one market, it becomes much quicker to adapt your knowledge to a second or third market.
Versatility is something that every trader needs to build into their approach from day one, and the adoption of MT4 means you can use virtually any broker in the world. This is ideal when you want to give yourself the greatest possible range of choice so that you can home in on what works best for you and the strategies that you feel most comfortable with. Adopting this approach will also allow you to consistently benefit from the advantages that MT4 has to offer.
MetaTrader 4 Advantages & Tips
MT4 allows new traders to quickly get up to speed with how the markets work while also providing plenty of powerful analytical tools for more experienced traders. Some of the key advantages that you will be able to benefit from on day one include:
- Fast execution speeds allow you to react quickly to changing market conditions so that you don’t end up having to constantly settle for the tail end of a trend
- Tight spreads allow you to accurately manage your risk exposure so that you can take a strategic approach to protecting your capital
- VPS hosting support ensures uninterrupted trading and gives you the peace of mind that technical issues won’t force you into negative trading positions
MT4 is also set up to allow you to experiment with some of the more common trading strategies without delay. Here are some popular approaches that novice traders may find it helpful to consider in a little more detail once they move onto the platform:
- Trend Trading: Learning to follow upward and downward trends and choose the right time to take a new position by either buying or selling will help you to understand basic market dynamics
- Breakout Trading: Setting limits within which you won’t trade and then automatically making a trade once the price exceeds these limits will give you a greater understanding of market behavior
- Scalp Trading: Minor price fluctuations, when accurately assessed, allow you to make a large number of small trades that yield a large net positive benefit. Understanding granular price fluctuations will help with your understanding of the market
MT4 also includes a Strategy Tester tool that allows you to run historical data through your pre-determined trading strategies. Refining your approach based on the performance you achieve will help you to hone your strategy over time without exposing yourself to undue risk.
How To Use The MT4 Platform
Any trader can get started with MT4 today, and options like ThinkMarkets streamline the process so that you can get everything you need from a single point of contact. Good news for those of you who are reading this and want to make sure that you don’t miss anything in the initial setup period.
Here are some key points and helpful tips that will help you get started so much faster:
- You can open a new position using the order window
- You can modify the limits and stops on any open position
- You can set up smart price alerts that provide real-time updates
- You can download a comprehensive trading report from MT4 for review
- You can select currency pairs to trade under the ‘Market Watch’ tab
Put each of these tips into practice today, and you will be a step closer to mastering the MT4 trading platform and improving your understanding of the markets.
The Last Word
Mastering the MT4 platform is about practice and patience, but that doesn’t mean you have to accept slow progress. The key point is that you need to be realistic when it comes to how quickly you can develop your skills, and the learning trajectory varies from one person to the next. For example, if you are an experienced trader simply looking for a new platform, you will pick things up quicker than a novice trader looking to understand the basics.
Keeping sight of your end goal and putting the key points we have covered into practice will get you off to the right start. From there, you can make use of the many in-built training tools the platform has to offer.