MetaTrader 4 aka MT4 is a trading platform that is used by millions of traders and brokers. The platform can be downloaded for free from many of the online brokers trading forex. This article will give you a great MetaTrader 4 introduction. By the end of this tutorial you will navigate the MT4 platform like a pro.
MetaTrader 4 provides tools and resources. Traders use the MT4 platform to place and manage trades. It can be used to view currency prices in real time. Furthermore, MetaTrader 4 offers technical and fundamental analysis and is also appropriate for automated trading.
As far as the choice of currencies goes, MetaTrader4 offers an extensive selection of currency pairs. It also has a drop chart with indicators to pick from and place on your charts. Therefore, the charts are customizable. Although at first glance the MT4 platform looks complicated, it is actually very user-friendly. If you are new to trading, do not panic! This article will take you by the hand and walk you step by step. By the end of this set of articles, you will be able to download the MetaTrader 4 platform, select your favourite currency pairs, spot breakout patterns, and track your trades.
Image of how a MetaTrader 4 Platform looks like
Plan Ahead – You may want to trade in a Virtual Environment before risking your capital – in which case you can open a Demo Account.
MetaTrader 4 Introduction and Download
MetaTrader 4 cannot be accessed through a website. It requires download and installation to your computer, phone or tablet. Here is how to open your account.
- You can either download directly from MetaQuotes https://www.metaquotes.net/
- You can select one of the many Forex Brokers who uses the MetaTrader4 or even MT5 and downloads directly from their site.
- Make sure that you select a broker that is safe. Do your due diligence and make sure that the Forex Broker you select has good reviews. One great place to check on brokers is ForexPeaceArmy.com
- Enter your account details carefully.
- Remember that on MT4 you can hold one or more accounts. When you are placing trades, make sure that you are placing them through the right account. If you have multiple accounts, keep a record of your login and password details. If you think you may forget them you LastPass for safe storage. https://www.lastpass.com/
Back to my earlier comment, you should consider the virtual environment (Demo Account) before you plunge in with your real cash. Trading on a demo account will give you the real feel of the MT4 platform without putting your hard earned cash at risk. Moreover, you can always top up your “dummy money” if you lose your capital.
MetaTrader 4 Introduction – How to Set An Order
I am now assuming that you have followed through and set up your MT4 account. Therefore it is now time to start making money by learning how to use it!
I understand that looking at the MetaTrader 4 Introduction platform looks more like a NASA chart. All the windows, buttons and instruments can be a little bit daunting. However, as I explained earlier, I will be holding you literally by the hand and walking you through it! Let’s move forward on this MetaTrader 4 Introduction – because this is singlehandedly the most important part of helping you make money online trading Forex!
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Setting Orders of MetaTrader 4 Introduction
Setting Order is a basic that you cannot do without! In this article, we are going to look at how we are going to
- Sell or Buy an Asset or Currency pair – via Market Execution.
- Pending Orders – Another way to buy or sell
- You have entered a Trade BUT want to modify it – how can we do this?
Let us go ahead and start off with the first target of setting orders in this MT4 platform explanation!
#1 Market Execution – How to Enter A Trade
- Our first step is to click on the new order button. This is found in the dialogue box at the top left-hand corner of your MT4 trading platform.
- Once you hit the Order button you will get a new screen. Here is where you select the Order Type and Market Execution from the drop-down Menu.
- Next, you must enter the size of your position. Remember that in this case volume is expressed in LOT SIZES.
- As such if you are looking at buying for example 2000 units say $2000 (United States Dollars) you will enter “0.02” in the volume field.
- The dialogue box with “notes and remarks” is an optional box which I find extremely useful to use. This could be the place where you write the reason for which you are taking a trade based on a particular analysis.
- And finally, it is time to decide on which direction you are taking your trade. This is where you decide whether you are going to BUY or SELL a currency pair. (Or whether to LONG it or SHORT it). Once you hit the button that reflects your decision, you will have a pop-up window that will confirm that your trade has been processed.
Later on, we will explain how to limit your exposure on a trade by executing a Stop Loss or Take Profit. These are exit levels that we may modify even AFTER we have placed an order.
MetaTrader 4 Introduction – How to Enter a Trade Via a Pending Order
- Let us go back on the MT4 trading platform and once again click on the New Order button.
- This time however from the drop down we select the Pending Order Type instead of the Market Execution.
- Naturally, you need to select your currency pair and whether you want to BUY OR SELL the pair.
At this point, you will be given 4 options
- Buy Limit
- Sell Limit
- Buy Stop
- Sell Stop
Your Buy Limit Option is necessary if you plan on buying or “going long” at a price which is lower than the current market price.
Your Sell Limit Option is necessary if you plan on selling “going short” at a price which is higher than the market price.
Your Buy Stop is important if you are planning on buying a currency pair at a price which is higher than the market price
Your Sell Stop is vital if you are planning on selling at a price lower than the market price
- Now that you have decided which type of order suits your need you will need to enter the price at which you want to enter the market.
- As with Market Executions, you will now enter the value that you want to trade. This is known as the volume field.
- Here is where you will decide at which point you want to take profits or stop losses. Enter your desired levels in the fields shown.
- A Pending Order will also give you the option to set an expiry date on your order. Choosing this field automatically means that if the market does not reach the levels you require, the trade will automatically be canceled.
- Now you will just need to go over the complete details and once you are sure about your levels, you click on the Place Order button. A pop-up window will again appear to confirm that your order has been processed and executed.
How to Modify Trades – MetaTrader 4 Introduction
If you look down at the bottom of your MT4 platform you will find all your running trades. All the information relevant to the trades is also found here. This includes the strike price, the value of your trade, your stop losses and takes profits.
Let us assume that you want to move your goal posts and wish to add/change/modify your profit or loss target:
This is the process you will need to follow
- Make sure that you have no open dialogue boxes on your screen from other trades you were planning to execute.
- Right-click on the trade and the dialogue box pertaining to the trade in question will appear. Here you must decide whether you want to either “Modify” your trade or “Delete” it
- Fill in the Take Profit or Stop Loss to your desired levels.
- Confirm by hitting the Modify button.
- The MT4 dialogue box will now confirm that the adjustments have been registered.
How to Close a Running Trade on MT4
If you are not relying on your “Take Profits” or “Stop Losses” on any particular trade, you may want to close an open trade. This can be either because you are happy with the profits you have gained. Otherwise, it can be because you want to limit the extent of your losses.
This is how to proceed to close an open trade:
- Right-click on the trade in question. Choose the “Close Order” option from the menu.
- If you are sure about closing this order all you will have to do is hit the close order button.
- The trade is automatically closed and the balance should now reflect the gain or loss you have made with this trade.
MetaTrader 4 Introduction and Conclusion
In this MT4 platform tour and introduction, we have gone through the basics of opening an MT4 platform which can be used for all your Forex Trading requirements with any broker.