Forex Trading Beginners Guide MetaTrader | Basic ch - 1
Forex Trading Beginner's Guide: Using MetaTrader
To begin forex trading, beginners must first grasp the basics. In this post, I'll share insights about forex and provide a guide on how to trade using MetaTrader.
What is Forex/Foreign Exchange/Forex Markets:
Forex refers to Foreign Exchange, where currencies are bought and sold. In the 21st century, technological advancements have transformed the Forex market into an electronic network. It comprises banks, brokers, institutions, and individual traders globally, all participating in trading currencies to gain profits.
- First, you can learn more about Forex Trading and basic about currency pairs.
Requirements to Start Forex Trading:
The basic requirements include having at least a phone or computer device, a broker, capital funds, and an account to initiate trading.
Device: You need a device such as a phone or computer to access trading platforms.
Trading Fund: Trading requires capital funds. If you're new to Forex, starting with a demo account is recommended to learn trading before switching to a real trading account.
Broker: You must have an account with a broker to connect to the Forex market. You can open a demo or a real trading account under a broker.
Beginners Tip: You can start forex trading with a demo account. Alternatively, you can join demo trading competitions to learn and improve your skills and have a chance to win rewards. Here are some competitions you can join:
XM $10k Demo Seven-Day Showdown Trading Competition - post
Using MetaTrader:
MetaTrader is a popular trading platform developed by MetaQuotes. It comes in two versions: MT4 and MT5, both offering similar features.
MetaTrader Interface:
1. Quotes: View and add trading symbols such as forex pairs, commodities, indices, stocks, and cryptocurrencies. You can add or remove symbols using the plus and pencil icons.
2. Chart: Here, you can view the selected pair from the Quotes tab in a chart format. It shows the current live price, date, time frame, buy/sell options, lot size, indicators, and more.
3. Trade: Monitor account balance, open positions, and current profit or loss. Execute trades and manage orders from this tab.
4. History: In this tab, you can view the history of deposits, withdrawals, and trade orders.
5. Messages: Access platform notifications, news, and community messages.
How to Trade Using MetaTrader 4/5:
1. Select Symbol: Choose a trading symbol from the Quotes tab and open its chart.
2. Analyze Market: Analyze the market trend and decide whether to buy (long) or sell (short).
3. Place Trade: In the Trade tab, select New Order. Choose your trade size (lot size), type (market, limit, stop), and set stop loss, and take profit levels if desired.
4. Monitor Trades: Once your trade is executed, monitor it in the Trade tab. You can modify or close your positions as needed.
5. You can modify or close your position as needed by holding or sliding the left side of the trade order. Modification options include closing positions, modifying positions, placing new orders, viewing charts, and bulk orders.
Final word
Remember to start with small lot sizes and use risk management strategies to protect your capital. Continuously educate yourself about forex trading and practice on demo accounts before transitioning to live trading.
