New to Trading in the Financial Markets – Key Things to Know

So you want to join the millions of folk worldwide that trade in foreign exchange, Forex. You know that means an asset class based on the value of currencies. You also know about Contracts for Difference CFDs), trading based on the movement of an asset in a set period of time. 

You click on a recognised and experienced trader that offers the lowest commission you could find. It says click here and away you go. That’s a bit like not reading the small print on an insurance contract. You need to be a bit more aware before making the leap into an area that can make you money as well as represent risk. Forewarned is forearmed.

Metatrader 4 is an award-winning platform in the financial markets that welcomes both new and experienced traders. You decide initially what trading platform suits you and what should be your pricing model. Their particular expertise is Forex and CFDs. It’s been around for almost 20 years and has gained widespread use mainly because of its user-friendly interface,  performance gauging analytical tools as well as the ability to automate trading strategies.

Overview:

MT4 (to give it its concise name) provides traders with the necessary tools to analyse market trends, actually perform trades and manage investments. A key part of the site is that it is customisable so that it can be used to fit in with your precise level and breadth of trading.

The Key features you’ll find at MT4:

For the noob one of its key benefits is an intuitive interface. This makes it a piece of cake to understand for the newest newbie. Before your eyes, charts and market watch windows that you’ll learn are vital. Its trading terminal is customisable adding a depth of ease of use for the novice.

Charting tools (line, bar and candlestick basically though others are available too) contain pricing data and timeframes so that markets can be analysed in real time which is so vital. Other technical indicators you will learn as you go along but the ability to draw trend lines on charts will quickly be an obvious benefit.

For expert advisors automated trading strategies written in Metaquotes Language 4 mean that trades can be executed according to predefined criteria. As the newbie progresses they see that trends are key and that knee-jerk reaction is anathema to reliable trading. Manual intervention is something to be avoided in the long run.

It’s trading not gambling buddy…..try the trots or Randwick for that!

MT4 has custom indicators that will help you identify Forex trends. Then there are scripts; these are basically a single algorithm that gives the trader a heads-up when certain conditions or parameters are met. Again the key is hands off not hands on for better profitability.

It handles order or trade execution that means the orders are sent to a broker who then routes them to the appropriate exchange or dealer network. Completion, or finalising the order ends the cycle.

Security on MT4 means that your personal data from your computer to the end of the line will be protected as you would expect when completing any transaction online.

Forex on MT4:

MT4 is particularly suited to this due to the charting tools and technical indicators mentioned above. You’ll find key currency pairs like Euro to USD but really in the trading of forex, the world is your oyster to try anything or an area where you may find an edge due to, say, particular knowledge you may possess in a certain currency. 

Tech tools will help you navigate the trends 24/5, whether at your computer or not.

CFDs

Essentially movements rather than ownership, MT4 supports trading in stocks, indices, crypto and commodities.

This provides leverage meaning you control and amplify a position with your desired capital. But you must appreciate while this can increase profits the reverse is also true.

You can speculate on gold, oil, Bitcoin etc allowing for portfolio diversification taking advantage of market conditions.

In conclusion, MT4 is good no matter what your experience giving you the tools to maximise your expertise and profits.