Forex Trading For Beginners (Free Forex Education) - page 4
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because all trader target is to make profit again and again as much as they can, but what trader need to do , hunting news is one of many thing that can trader do to make some analysis to predict the price movement, but its not always work, just keep train and u will master it.
MT4 and MT5: Is the Best the Enemy or the Friend of the Good?
I have been dealing with Forex for a long time - starting from those "grey" times when it just started, with the use of Internet, to actively interfere in the life of an ordinary person. That was around 2008.
Initially I tried a number of trading platforms with different brokers, and did so until the moment when the fate brought me to know MetaTrader. I will not prevaricate, but it is thanks to this platform, that I abruptly changed my life, surrendering to Forex with my body and soul. I literally fell in love with the MT4, having learnt it upside down and, like any lover, could not find a slightest flaw in it.
And here came a terrible thing... I remember that fateful 2010, when it appeared on the horizon, MT5, the rival! I know that millions of MT4 fans worldwide faced a choice, where to give their heart - to the same reliable and proven companion, which they had for many years, or to a young, modern, and, as instructions stated, more nimble rival?
Frankly, I myself still have not solved this dilemma and therefore decided to collect and systematize the opinions of traders in the various forums, who turned out to be many.
So, here are some quotes:
1. "A more convenient opportunity to switch the timeframes, it is not necessary to download any scripts and mumble with the minutes settings. I am very pleased with the 12 hours frames." In addition, I should note that there are 21 timeframes available in the MT5.
2. "Transition of the interface from one language to another." I, for example, have Windows in English. And when I try to translate the interface of MT4 terminal into Russian using the Languages function, there appears a meaningless set of characters instead of words. In the MT5, the same function works flawlessly.
3. "In addition to a modern design and pretty :-) buttons there appear additional graphical objects that the user can place on the graph." Moreover, the terminal MT5 allows you to open up to 100 charts simultaneously.
4. "There came Depth of Market, which displays information about applications for the purchase and sale of a financial instrument".
As developers write: "MetaTrader 5 platform is designed to give the ability to trade stocks, futures, options and other exchange-traded instruments in real markets. Therefore, Depth of Market is available both for symbols that are traded in the stock exchange during run-time, and for non-exchange symbols. For stock symbols, Depth of Market displays real prices and the volume of trade orders. The Depth for OTC instruments is a scalping tool which allows one-click market and pending orders."
We will talk separately in more detail as to how to use this Depth of Market, in the near future. In the meantime, let us say that one more built-in function of MT5 - "Symbols" - is intended to facilitate such trade. This issue will also be useful and interesting as after MT5, the Depth of Market appeared on MT4 as well.
5. "The new MQL5 programming language used in MT5 has become much faster than the MQL4. That is why the MT5 is preferred for the automated analysis systems and / or trade. In MQL4, the robot worked by tick, in MQL5, there appeared events: the timer, at any trade action, changing the user's depth of market, with action on the chart. "In connection with what has just been said, setting a particular indicator, script or Expert Advisor to the terminal, traders should definitely pay attention to which of the platforms - MT4 or MT5 - it has been written.
6. "In MT5 there is a very handy thing - the news release time is shown directly on the chart, ie there is no need to look every once and again to the calendar."
7. "The MT5 has a very big advantage - it is the tester, there the testing speed is much higher, plus the ability to test the scalping, plus the ability to test the multi-advisors on several currency pairs." There can also be noted that a tester supports multiple processors (not only its own, but also a local network of computers) for optimization strategies. We will also discuss the ways to use it in a separate article.
8. "There are practically no indicators or expert advisors for MT5." Here I beg to differ - open the tab "Market" in the terminal and see how many products there are in its "Navigator" - hundreds! Of course, they are not so many as for the MT4, but note that the MT5 is twice younger than its rival.
9. And finally, the last point, which was the cause of many of the fiercest disputes. Of course, it is automatic merging of several orders on one instrument into one general position, and as a consequence, inability to put "locks", opening opposite orders. In other words, if in MT4 each order exists on its own, in the MT5 all open orders are accumulated into one.
For those who are accustomed to use counter-positions, grid advisors or Ilan type advisors, this causes a permanent displeasure. Although, in my opinion, there is a very simple way out: two trading accounts and two terminals - at the first one buy positions are averaged, on the other - the sell ones.
But that's not all! According to unconfirmed rumours, which have reached me from very reliable and authoritative sources, the possibility of hedging (opening countervailing transactions in the same instrument) will be available soon on MT5 as well. Meanwhile, intensive work in this direction is going on in the MetaQuotes.
What is it? Is it beginning of the end of the MT4 era? Probably yes. At least, I have downloaded the "five" on my computer and I study it thoroughly, as it is awkward to drag at the tail of progress.
Depth of Market: a Tool That Makes the Invisible Visible
Everyone is familiar with the rhetorical question about the glass, which is either half-full, or empty. In our case it will be an instrument Depth of Market (abbreviated DOM), which is something visually resembling glass, it allows the trader to see how it is filled with requests and quotes. This tool is integrated into MT4 and MT5 platform and at the same time, as shown by a survey of traders, many of them not only do not use this feature today, but also do not understand why it is generally necessary.
In the classical understanding, Depth of Market is an order book for the purchase and sale of securities on the stock market. Each application includes a price (quote) and the number of shares. The Exchange sends this information to brokers (sales representatives), and they pass it to traders (bidders).
Indeed, all this is true. And the appearance of DOM on MT5 has been aimed to open the door for traders to a full-fledged stock exchange trading. As one of them cried out in social networks: "Colleagues, it is time to grow out of short pants and begin trading as it is done on Wall Street!"
Indeed, it is time. And really, everyone would like to. Still it is not that easy.
And precisely in order to provide traders with access to exchange instruments, DOM originally appeared in MT5 terminals. It is very easy to call it - just click the right mouse button on the chart, and the screen immediately shows information about the volume of orders for the purchase or sale of an instrument by the best and closest to them prices. We emphasize we are talking about exchange-traded instruments. As for the OTC market, which is the Forex, we will talk about it below.
The stock and commodity markets have many strategies that are based on trade with the help of Depth of Market, which allows you to visually assess the supply and demand at a given time. Simply put, the DOM is a window of outstanding orders closest to the market.
It would seem that this is the Holy Grail, which allows you to quickly identify not only possible trends, but also the support and resistance lines; and understand, at what price at this or that given moment one can buy or sell, for example, a particular stake.
However, it is not that simple. Trading robots, as well as market makers often do not stop the desire to mislead the competitors, and therefore put large applications to buy or sell into the Depth of Market, and then... remove them. So trading with its help is not so simple in the modern conditions, as it may seem. Nevertheless, the fact remains - MT5 gives traders quite an effective tool for exchange trading, be it Dubai DGCX, Brazil's BOVESPA, Istanbul BIST - Borsa Istanbul or Moscow Exchange in Russia. And in order to start operations there, it is sufficient to just select an appropriate broker.
As for the Forex, the picture is quite different. There are frequent reviews of traders who claim that the DOM is not needed at all. I will not agree to this. It is a great tool for scalpers - as it has momentary speed of execution of orders for purchase/sale, as well as the issuing and transfer of orders. Testing on real accounts, at a wide variety of brokers, has shown its efficiency.
The only thing, we must remember that, in spite of the automatic summation and averaging of open positions in trading on MT5, averaging the values of the take-profit and stop-loss does not occur there. Therefore, you have to make corrections manually. But with regard to the MT4 (and now the Depth Of Market is available on this platform), there is no such problem - the symphony of high-speed trading and scalping sounds on "the four" like clockwork, which greatly increases the effectiveness of this action.
Summing up this material, we will ask once again: is our "glass" half empty or half full? It all depends on who needs what. However, the above demonstrates that it is able to quench the thirst for information of many of those who need it so badly.
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Well, you can start to understand few indicators (2-3, I may say) and it takes long time to really understand it.
A beginner should start their trading career from some education from internet and do some practices from demo account that will gain their experiences.
Basic logic can lead us to some profitable trades more than the complicated one. So don't rush yourself is you can't learn the complicated ways.