Whether you’re a newbie or have been in the trading game for a while now, MetaTrader 4 is probably your go-to trading platform. And it should be, considering how user-friendly and lightweight it is.
This trading platform lets you do everything from market analysis to automated trading. But just because it’s popular doesn’t mean it’s foolproof.
Like anything in trading, MetaTrader 4 works best when you use it wisely. So, before you open a trade, here are some dos and don’ts to keep your experience smooth, safe, and profitable.
DO Start with a Demo Account
This should be your first move. MetaTrader 4 (MT4) offers demo accounts where you can practice trading using fake money. It’s the perfect playground to test strategies, learn how the platform works, and make mistakes without burning real cash.
DON’T Trade Without a Plan
Even if you’re using a platform like MT4, going in blindly will hardly even work out. Always enter trades with a plan. Know your:
- Entry and exit points
- Risk tolerance
- Profit target
If you don’t know why you’re making a trade, you might as well just not do it.
DO Use Stop Loss and Take Profit Orders
These two tools are crucial for any kind of trading. A stop loss helps limit your losses by automatically selling a trade when its price dips to a certain level, while a take profit automatically closes your trade when you’ve hit a certain profit level.
DON’T Ignore Risk Management
Set your position size according to how much you’re willing to lose or are okay with losing. Risking your whole account on one trade is a quick way to bankruptcy. If you actually want to make some money, you need to learn proper risk management.
DO Explore Built-in Indicators
MT4 come with a lot of technical indicators. Spend time learning what they do and how they can guide your trades. You will find moving averages and other terms you might not be familiar with. Don’t just pick one randomly.
DON’T Let Emotions Take Over
Revenge trading, panic buying and selling, and fear of missing out are all emotional landmine that can blow up your strategy. Make sure to stick to your plan, and if you’re feeling anxious or overwhelmed, step away from the screen.
DO Keep an Eye on Economic Calendars
News moves the market. MT4 lets you watch economic events and add them to your trading dashboard. This way, you’re not surprised by sudden spikes or crashes and can be ready for what’s coming before it does.
DON’T Forget to Monitor Your Open Trades
You can’t just set trades and forget about them, unless you’re using automated bots with strict rules. Always check in on your trades, especially during volatile market hours. Things can change faster than you realise.
DO Backtest Your Strategies
Before you risk your real money, test your strategy on historical data. MT4 lets you do this easily by offering a testing tool within the platform.
DON’T Ignore Security
Make sure you always use a strong password for your account and enable two-factor authentication if available.
