Meta Trader 4 Beginners guide to Getting Started
Meta Trader 4 or MT4 as it is also known is probably the best and most used platform used for trading Forex. It can also be used for binary options set up and strategies. As this platform has a full expanse of indicators and trading tools to help with all your trading needs.
Meta Trader 4 can be downloaded from just about any forex broker. Failing that you can download a copy straight from the Meta Trader website.
For all you new be traders out there this is a beginner’s guide to get you started in the forex and using the MT4 platform.
Unlike binary options where you are simply looking to place a trade of either a call (up) or a put ( down). You instantly know the timeframe and amount of cash you risk trading. Also, the potential profit to be made. Forex is slightly different as you do need to decide in the direction you wish to place a trade, but how much the trade will cost if you lose or the profit you will make is a little less predictable. Measures can be taken to determine a maximum loss or even profit.
This may at first sound quite complicated but honestly, once you start to understand the principles it really is quite simple.
This guide is set up for first-time traders and to help you step by step to start trading forex using the Meta Trader 4 platform.
Getting Started First Download the MT4
- Firstly you will need to sign up with a reputable forex broker, in the example I have used https://www.cmtrading.com/. Once you have signed up and filled in the registration form you will then be able to download the MT4 directly from their website. Note that you only need to open a demo account at this stage.
- Now that you have downloaded the MT4 simply follow the on-screen prompts to load the software.
- Once installed you will now need to log into your demo account through the Meta Trader
- That’s it you now have Meta Trader 4 all set up and ready to start using. It does all look a little complicated and overwhelming at this stage but fear not. We can guide you through the next steps.
How to Start Using the Trading Platform
When you first install the mt4 it all looks a bit of a mess. This can very easily be overcome by changing the templates of the platform to a more pleasing appearance.
You may want to change!
- The charts can be in one of three types, Bar Charts, Line Charts or the preferred option of most traders The Candlestick Charts. The reason candlestick charts are more popular is basically because they offer you more information as to what is happening with the currency at that given time. For example, on a five-minute candlestick, you will be able to determine the price at which it opened when it closed and also at what price the maximum and minimum price the currency touched during that five minutes period. Also, the shape and size of a candlestick can also tell you a lot about how the market is reacting at that time.
- The time scale at which the chart is moving. this can range from 1-minute charts up to monthly charts.
- The general appearance of the chart. The colour of the background, foreground, and candlesticks themselves can all be changed. Just right click on the screen and go to properties. Here you can play about with the various settings.
- Finally when you have the chart looking the way you desire you can again right click on the chart go to templates and save the template. This template can now be used on all of you new and existing charts.
How to start Placing Trades?
So now you have downloaded the meta trader 4 and you have it looking the way you like you are ready to start trading.
As I mentioned before forex is a little different to binary options trading. Many people look down on binary option and swear that forex is the only way to trade. I believe that both ways of trading have their benefits and downfalls. But in both cases, you do need to practice first on the demo accounts and not just go into this blind. Learn some basic strategies there are many to be found online. Or simply follow other traders signals this is also a popular method of trading for new and experienced traders who simply do not have time to study charts and indicators.
To place your first trade or should I say Order, you can either click the new order button at the top left side of the top menu bar. Or you can simply open an order by clicking the red or blue box in the top left corner of your currency chart.
Now a new screen will open and this is where you will fill in your order details.
Now to fill in the details of your trade.
- Symbol – Select the currency you wish to trade if it is not already shown
- Volume – This is the amount you wish to trade, to put it very basically 0.10 is equal to 1 unit of currency you are trading with. ( Eg dollar, sterling or euro). So a volume of 1.00 would equal 10 units of currency. Just so we are clear. If you are from the UK you would be trading in sterling £. So the volume of 0.10 would be equal to £1 for every pip of movement in either direction.
- Stop Loss – This is like a loss cushion. If say the trade goes in the opposite direction in which you had placed your trade. You can set the stop loss to minimize the amount of money you are willing to lose on a trade. eg if the current rate is at 1.0658 and you place a stop loss at 1.0648. this would be a 10 pip stop loss and be depending on the volume at wich you place the trade this would be your loss. Eg a volume of 0.01 would be a loss of £10
- Take Profit – This is similar to the stop loss but in this case you are setting the price at which you want the trade to stop and take your profit at.