Making money in forex is impossible without a trading platform. With the number of trading platforms available, a new trader would be spoiled for choice as to which to go for.
However, the most famous trading platform widely used among pro traders is the MetaTrader 4 application. As a new trader, you might wonder how MetaTrader 4 helps traders make money, even if it makes any.
This article is an answer to all the questions you have about the money-making abilities of MetaTrader 4. Stick with us and find your answers.
What is MetaTrader 4?
Before answering the question if MetaTrader 4 makes money, it is imperative to discuss the meaning of MetaTrader 4, otherwise known as MT4. MetaQuotes developed a trading platform known as MetaTrader 4 in 2005, which has become one of the popular trading platforms in the forex industry.
Other markets besides forex trading, are traded on the platform, including cryptocurrencies, commodities, and indices.
How to Start Trading on MT4?
Before trading on MT4, it is necessary to understand how the trading terminal works since it has a lot of functions and features. Also, depending on the device used, there are various compatible versions. Once you download MT4 and understand all its functions, you must select a currency pair you wish to trade.
Trading involves currency pairs in Forex, and for starters, selecting popular currency pairs like EUR/USD is recommended. Before you begin to trade the selected pairs, you need to analyze the market's current situation and study the changes in the selected pair's rate.
If you are starting to trade, it is advisable to start by trading with just one currency pair. After gaining experience, you can use more financial instruments to open trades.
Trading with a Demo Account
After you download MT4 and want to begin trading for the first time, it is advisable to start trading on a demo account before switching to real money trading. Although a huge amount of virtual money is available on a demo account, it is advisable to start only with the amount you would use if you were trading live.
Demo trading is quite important when starting out as it gives you an understanding of how the platform works. It also helps you to test the credibility of your strategies before moving into the live market.
To be a successful trader, it is important to keep your emotions in check to prevent you from making rash decisions that can land you in huge losses. Only start trading live after your income generation is consistent with your trading strategy.
You also need to understand that trading with real money is different from trading with a demo account. Once your money is involved, your emotions start to play a part in your decisions. So, you need to learn how to keep a cool head even when on a loss. This is a vital lesson for every trader.
Trading with a Real Account
After practicing with a demo MT4 account, you can open a real account with a broker, and your first deposits should be in cents. After trading with the cents and your trading strategy proved effective, you can increase the amount deposited.
Some traders' mistake is depositing a huge sum of money at the get-go, which they used to trade, and eventually lose everything.
If you are trading a real account for the first time, you need to take things slow and start with less money. Based on antecedents, novice traders would have suffered losses before they could start making profits consistently through trading.
So, you should deposit a huge amount of money only after your trading strategy yield positive results consistently. Also, analyzing the results is important to understand why the exchange rates change.
How Does MetaTrader 4 Make Money?
Now that we’ve discussed how demo trading and live trading on MT4 works, let’s move to the actual subject, can you make money on MT4?. Yes, Meta Trader 4 can make you loads of money. However, making money on Meta Trader 4 depends on many factors.
These include your emotions, trading strategies, risk management, and many more. Let’s see how each of these factors affect your money-making abilities.
● Trading Strategies: You have no business trading if you don’t even have a strategy to work with. Before starting trading at all, you must have dedicated a good amount of time to learn different strategies and different types of currency pairs. After you’ve picked a strategy and consistently tested it using demo trading, you can go ahead to start live trading.
● Emotions: As we mentioned earlier, your emotions mostly come into play after you deposit your money into Meta Trader 4. You start to panic once the trade stays in the red zone for too long and you could chicken out. Controlling your emotions is a skill you must learn if you want to succeed as a trader. You should trust in your trading strategy and now allow your emotions to make decisions for you. Once you can overcome the emotion barrier, you’re on your way to becoming a great trader
● Risk Management: Irrespective of your skills and emotional training, if you don’t have proper risk management, the chances of losing all/most of your money is very high. You should learn how to accurately set your lot size and how much exposure you can afford in the markets. This will help you know when to pull out and when to stay in the market. Also, you shouldn’t trade every time. Sometimes, taking a break is a strategy too.
If you can learn about these three parameters properly and stay consistent at trading, then you’ll be able to answer a satisfactory ‘YES’ to the question ‘Does Meta Trader 4 make money?’.
Conclusion
Making money on Meta Trader 4 depends on you. It is possible to make money but you need to make sure you have the right training before trading. After getting the right training, you can now trade. Well, to trade, you need to download the MT4 platform first.
The app is available on Google PlayStore or App store for download. If you are a trader that wants to begin your trading journey, download MT4 and access the demo account to perfect your strategy before trading a live account.
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