TRADING TIPS & TUTORIALS
How to use MetaTrader 5 - Basics
In today’s article, we will introduce you to the most used trading platform MetaTrader 5. As it is already well known, MetaTrader 5 is almost essential for online trading, which is slowly becoming more and more attractive for people who want to evaluate their money themselves and achieve potentially higher profits. It is also important to know the interface of the platform, which allows us to do that.
In the following text, we will describe the most basic parameters and platform options that are very important to know before you start trading and using it.
Picture 1
Here in the first picture, we can see the state of the platform, when we log in to it for the first time. In the middle are 4 currency pair charts, which are set in the basic format. On the left side of the red circle, we can find your account balance. On the same line on the other side, we can see our current profit / loss.
Terms:
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Balance – shows us the current account balance in USD
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Equity – shows us floating balance (balance plus or minus any profit from open positions)
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Free Margin – shows us available cash, which we can use for opening new positions
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Profit – shows us the current profit/loss from current trades
As you can see, we can easily and clearly check our current financial state, profits, losses in real-time thanks to this platform.
Picture 2
In the picture number 2, we can see timeframes M1, M5, M15, M30, H1, H4, D1, W1, MN.
The timeframe shows how the price developed in a specific time period. An example, when we choose M1, it means that one column shows how the price developed in one minute. The time frame is important to know because we choose the style of trading accordingly.
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M1 – shows the development of the price on the column/candle within one minute
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M5 - shows the development of the price on the column/candle within five minutes
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M15 - shows the development of the price on the column/candle within fifteen minutes
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M30 - shows the development of the price on the column/candle within thirty minutes
We use the time frame from M1 to M30 for short-term trading, which means that the trade can last from a few minutes to several hours. M1 time frame is used for so-called SCALP trading.
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H1 – shows the development of the price on the column/candle within one hour
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H4 - shows the development of the price on the column/candle within four hours
We use the time frame from H1 to H4 for midterm trading or so-called SWING trading, where trades can last from a few hours to several days.
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D1 – shows the development of the price on the column/candle within one day
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W1 - shows the development of the price on the column/candle within one week
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MN - shows the development of the price on the column/candle within one month
We use the time frame from D1 to MN for long-term trading, the trade last from a few days to several months or years.
Picture 3
In the picture 3, we can see the red box where we can choose a type of chart for trading. We have three types: bar chart, candlestick chart, and line chart. It is important to realize which type of chart is most suitable for online trading. The most used type is a candlestick chart. It is important to choose right chart type for technical analysis.
Chart type description:
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Bar chart – this chart is drawn in columns. Each column carries four important information: open price, close price, high price, low price
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Candlestick chart – this chart carries the same information as the bar chart. However, candles are much clearer. Each candle consists of a body and upper and lower shadow. The body shows the difference between the opening and closing prices. Filled body shows a increase in price and an empty body shows an decrease. Ends of shadows show the highest and lowest price.
Bar chart
Candlestick chart
Line chart
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Line chart - shows only the closing price in the selected time frame. In this chart, we do not accurately distinguish volatility and important price support points (which we determine according to the highest and lowest values). We can see only the development of the price.
Picture 4
In the picture 4, we can see how to set up a trade. As you can see #1 shows the “New Order” button. After clicking, we will see a tab (#2) with the order settings where we can set a parameter that will suit us.
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Symbol – represents the type of product we want to trade
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Type – here we choose the type of trade for opening positions. We have two types: Market execution and pending order
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Volume – here we choose the volume of the trade, how big the position we want to open. Volume is always important to adjust to the balance on the account.
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Stop Loss – we set this order in case we want to reduce the loss on the trade
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Take Profit – this order works in the opposite way to Stop Loss. We set it if we want to ensure profit.
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Sell by Market – we use this button for short position(we expect that price will go down)
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Buy by Market – we use this for opening long position (we expect that price will go up)
Volume, Stop Loss, and Take Profit are important to know and learn to work with.
How to set the volume correctly depends on the account balance, but above all it is based on good Money Management. The same means for Stop Loss and Take Profit, these two orders help us better manage our risk and maximize trading profit. This is the basic information what every trader should know if he wants to focus on quality and long-term trading.
Picture 5
Here in the picture 5 we can see one-click trading, you can set this option in the platform, it is a faster version of opening position. Especially we use this option if we want to do SCALP trading, where we can immediately react to a change in price movement.
MetaTrader 5 benefits:
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Quick access to trading with a single click
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Interactive charts, changing stop loss, take profit directly in the chart
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More than 79 analytical tools such as Elliott, Fibonacci, Gann theory.
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Extended timeframe
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New programming language for creating custom scripts
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You can download and purchase various indicators directly in the market window
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Possibility to monitor spreads in the “Market Overview” window
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Notifications via SMS
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More server components than MT4 – more accurate information about products