“Technology is best when it brings people money.”
The above quote from Matt Mullenweg is rephrased a bit as it fits perfectly into the forex market. Ever wondered how you actually buy and sell in a forex market? How will you know about the current market ratings? How can you do your own technical analysis and go ahead with a trade? MetaTrader 4 is your answer. All your brokers will ask you to open a MetaTrader 4 live account in order to go live in the forex market.
MetaTrader 4, or just MT4, is an electronic platform widely used by foreign exchange traders. Developed by MetaQuotes Software, MT4 was released in 2005 and is licensed to forex brokers, who in turn provide the software to their clients. The software consists of both a server and client component; the server part is run by the broker while the client part is given to the customers.
You, as an investor or trader, will hold a MetaTrader 4 live account. This may seem to you as a simple account which provides an interaction between you and your broker and is meant for simple buying and selling, but there is more. A proper use of this software may help you increase your profits. Find out how.
Keep a check on currency quotes.
Not just for the currency pair you own, but also for other pairs. Say you own Euros at present. You can decide when to sell these by keeping a watch at its market quote. EUR/USD is the most popular currency in the forex market and is the most volatile as well. With your MetaTrader 4 live account, you can keep a constant check for its quote to peak.
Carry out your own technical analysis.
Technical analysis will help you to understand the trend of a particular currency in the forex market. Graphs and charts are available in MT4 showing the historical statistics and behaviour of a particular currency.
So, if you see that Euro has started to fall against USD, say from 1.36, you can sell the Euros when it hits 1.34. A graph has in MT4 has shown you that Euro is likely to fall to 1.30 and then will peak to 1.68 in a matter of two weeks. What you do is buy more Euros when it hits 1.30 and sells all at 1.68. In the process, you make a huge profit.
Decide when to buy/sell a currency
Just normal price fluctuation does not decide your profit. A country’s economic condition and employment rate also decide its currency’s valuation. With proper usage of your MetaTrader 4 live account, you may get notified when the economy of a country is likely to improve. Buying that currency may reap profits.
Apart from these, an Expert Advisor tool is also available that will help you to make your decisions regarding investments and trading. Recently, most brokers are upgrading and providing their clients with a MetaTrader 5 live account with added features. In short, technology is available to help you make more money. Invest, as this is the best habit you can develop.