Trading Forex Using MT4: To this day, MetaTrader 4 remains one of the most trusted platforms for forex trading. Since so many brokerages offer access to it, beginner traders tend to opt for it.
Elevated activity has been noticed in the currency sphere in 2022, creating opportunities and attracting traders. The Yen, US Dollar, and Euro are posting larger trading ranges this year, and that’s why you, as a trader, should be familiar with MetaTrader 4. Don’t miss out on the opportunities.
#1 Analyze currency pairs on multiple timeframes
There are 9 timeframes available with the platform, and it is highly recommended to take advantage of them while conducting technical analysis.
Traders with a short-term approach might think that they only need the 1-minute or 5-minute timefranes, but in reality, larger timeframes can offer insights into major support/resistance levels and be helpful in this case as well.
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Recently, the Japanese Yen has been under pressure, with the BoJ buying bonds in order to cap long-term interest rates. As a result, the currency of Japan is weakening at an accelerated pace against most peers, including the USD and EUR, pushing exchange rates to levels not seen in years.
#2 Take advantage of various order types
The concept of spending all day in front of the charts might seem overwhelming, especially since currency pairs are not volatile 24/5. Depending on the country, each pair has different periods throughout the day when price ranges widen.
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To reduce the time one spends on monitoring the markets, traders can consider placing limit orders like buy/sell stop or buy/sell limit. All of these are available on MT4 and enable the user to place pending orders and not stay glued to the screen.
#3 Use risk management tools
Professional trading involves the use of a proper risk management system. Traders need to constantly deal with risk and thankfully, MetaTrader 4 offers basic tools to keep exposure under control. By using stop loss, take profit, or trailing stop, you can cap your losses, even when the market does not behave as expected.
Over the past few months, currency volatility has been on the rise, which is why traders should always take precautions when approaching this market. A higher return probability comes with greater risks, there’s no way to avoid that. Taking precautions when prices get wild is important, thus.
#4 Consider Expert Advisors (EAs)
Another important benefit associated with the platform is the option of using Expert Advisors. Some tasks, including opening and closing trades, can be automated, which means traders can design an algorithm based on a specific set of rules.
Technology continues to evolve and software is more efficient than human decision-making sometimes. That does not mean that traders can sit back and leave the process on autopilot. Even algorithms must be closely monitored and their parameters adjusted, based on changing market conditions.
With MQL4, traders can write EAs on their own – if they know how to. Those who lack programming skills can either learn them, or purchase already existing advisors and just plot them inside the platform.
