Use of Indicators in Forex trading

Here is would like to tell you something about indicators available on meta traders by default, I personally don't use all of them, but I use some of them, in which I personally like oscillators.

When you open your meta trader then you see indicators in your side column, just below the accounts link, click on that link and you will see so many indicators by default, you can double click them and when you click ok, you will see the indicators showing in your chart, but the main thing is to know what are indicators and what they work.

Actually, indicators are the script based on the average movement of market, they help traders to understand the market trend and expected direction, I personally use MACD, RSI and Stochastic indicators. But I never be dependent upon these indicators, because I know, market moves on its way, and sometimes these indicators turn wrong and if you open order on the basis of indicators then you might face some kind of financial loses. But sometimes these indicators become so much useful, especially when you are doing technical analysis and market is moving smoothly.

You need to know the divergence of market and if you are able to understand the divergence and point that out then you will be able to make good money from this market. I will show you divergence of market with the help of some pics.

High leverage and its importance

Dear Friend, I want to tell you that mostly brokers offer you high leverage and you can trade with small capital with the facility of leverage, usually I advice traders to set their leverage to 1:200, because in my view, it is best for them, but if traders use 1:500 then it is also ok, I think you all have noticed this thing that mostly good and regulated brokers offer not more than 1:500 leverage and when your equity increase, they reduce the leverage.

Another thing that I would like to share with you, mostly traders think that they will trade in gold with the same leverage, but they should keep this thing in their mind that whenever they open gold or any other metal order, the broker automatically set the leverage to 1:50 from whatever you set, and then you see that you can not open more than one or two orders, this all happen due to leverage, so it is better to understand how leverage works and what leverage is available. Gold market is different from forex market, mostly traders think that gold and stocks are available in one meta trader platform then it is included in forex, but it is a big mistake that should be highlighted.

I would like to advice my readers that you should set low leverage, to secure your trades and capital, it will be better if you do proper money management, we use high leverage, because our capital is too small, so invest big and set leverage low.

Can I become a successful trader

Mostly newbies ask this question, and I don't know why they don't have confidence upon their own skills and talent, they are fear of thinking that they will become a good trader, I want to get that fear out of them and want to tell them that everybody can be a good and successful trader, but what is needed? Of course, hard working and a lot of learning, mostly new traders don't know how to start learning and what to learn, so I would like to suggest them that they should start from the basics of forex, they need to learn a lot of things, they should keep this thing in their mind. Continuous learning is the main key to success, because with continuous learning a trader trade in market and gain experience. 

If you are a little bit educated and understand reading then you can learn a lot of things available in english language, but there is another solution for traders that they can also find their own home country man who is trader, I think he will teach people in their native language and this will help them to understand the forex trading better, but remember, forex trading is not a children play, it is a serious business to do.

First thing that all traders should keep in their mind is to learn and their first preference should be learning not earning, after learning they will have to practice a lot, so if a trader is joining this market for the sake of earning then he will have to make his mind clear that within approximately six months he will not earn a single penny from this market, and he will keep focusing on market and its learning, then I think a trader will perform better than other ordinary trader who jump in the market and think that forex is easy business to do and it is just buying / selling of currencies.

Difference between meta trader 4 and meta trader 5

Well, I have seen that so many traders ask about the difference between meta trader 4 and meta trader 5, I would like to tell them that there is a little bit difference between these two platforms, but some brokers have modified the meta trader 5. 

I would like to tell you some differences between these two platforms, in meta trader 4, you will see only four last digits and the movement of market in normal time you will see in seconds, but in meta trader 5, you will see the movements in Milli seconds, this is because meta trader 5 has 5 decimal in last of price, for example, if we see the price of Eur/usd, then in meta trader 4 it will show as 1.2990, but in meta trader 5 you will see this price as 1.29902 or last digit may vary, if you see the last digit in 5 then you will see same price as mentioned above, but if the price move to 1.29906, then you will see 1.2991 in meta trader 4. This is a difference that mostly traders pointed out, but I would like to tell you about other brokers.

If you see other brokers meta trader 5 platform, then you can not hedge with them, in simple words if you open an order whether buy or sell, and your order is in negative then you can not open opposite order to secure your capital, your order will be automatically close with loss, similarly, if you have an opened order and you are in profits, so whether you close that manually or open opposite order, your order will be closed, and if you close that order manually then you will see that broker will open another order against your order, but not in your account.

So, if you are a new trader then you should know these things so that you will not face any kind of difficulties or financial loses if you switch to any other broker offering meta trader 5.