Table of Contents
Introduction
Entering into the markets, be it forex, cryptocurrencies, or stocks can be a daunting prospect to those starting their journey. Even veteran traders can be intimidated by new technological developments that require a research deep dive to prevent current portfolios from being wiped out, even in the short term.
What shouldn’t inspire fear is the software you use to initialize trades. Meta Trader 5 when used to bolster your skills will do nothing but inspire confidence and remove the dreaded fear, uncertainty, and doubt (FUD) many traders, both new and old traders encounter. This article will cover why the platform has become a brilliant tool for successful trading.
Risk Management
A quick view of the news and the worries of a recession on the S&P 500 or a spike in the value of gold will open up several forex trading opportunities. How you take advantage of these opportunities is up to the trader and of course involves an element of risk. If the markets are known for one thing it is that there is no such thing as a “sure thing.”
The best traders look to manage their risk. Meta Trader 5 is a great tool to do this without wasting time. The main way Meta Trader 5, MT5 for short, does this is by allowing you to place a stop loss on any of your initiated trades. That way if the market swings against your position, which it is known to do, you will not lose your entire trading budget in one trade. It is still up to you where the stop loss is placed and this should be within your risk tolerance and more importantly your budget.
Also Read: The High And Rise Of Mobile Trading
Chart Customization
Experienced traders have built their careers on certain charts but sometimes getting the vital information out of the chart is a challenge. MT5 provides a wealth of chart customization options to suit your needs. Even experienced traders find new ways to customize trades to help better facilitate trades. Your first likely change made will be the candle stick colors or changing from a bar chart to Japanese Candlesticks. This barely scratches the surface of what can be done. Time frames can be changed easily along with the creation of chart templates that can easily be loaded in if and when needed.
Autochartist
MT5 includes an Autochartist feature that automatically charts data from real-time data. Autochartist also has a built-in volatility analysis tool. Further, trend analysis capabilities can alert the trader to forex opportunities when indicators like a Fibonacci pattern begin to emerge.
MT5’s Ruler feature also assists in delivering traders vital alerts that could help the trader enter or exit a position. The ruler provides three bits of crucial information to any trade. These are the numbers of bars between a start and end point, Secondly, the number of pips between the start and end point. Lastly, the price of the traded instrument when your cursor hovers over that point. Just by providing these three bits of information, many traders can turn a loss into a profit.
Conclusion
The three features listed above just represent a tiny fraction of what you can achieve with MT 5 as your trading software partner. The more experience you gain the more this piece of fantastic software will become your best trading asset.
Also Read: Is Stock Trading App A Safe Way To Invest In Markets?
