Foreign exchange can be a very lucrative business, provided that one has the right tools for trade. This guide explains how you can trade more effectively by integrating one of the most popular trading systems with a highly powerful, user-friendly spreadsheet program.
Currency trading (or foreign exchange, forex, and FX, as it is variously termed), is the world’s largest financial market. This trade’s unique feature is that the commodity being sold or bought is the same as the substance being used to pay for it – currency. In other words, one type of currency is being paid (or sold) to buy another – hence the term “exchange.”
The volume of the forex business is simply mind-boggling. Trading in currency well exceeds $ 1,000 billion per day. Logically, it follows that with so much demand, opportunities for profits abound. The best way of tapping into this large market is by engaging in online currency trading.
As most of you already know, Metatrader 4 is one of the best trading platforms available. In addition to the standard functionality of opening and closing trades, it also contains an array of features to help users develop more effective trading strategies.
Perhaps the most useful feature is the “Expert Advisor.” Metatrader allows users to automate trading with the use of expert advisors. This is very crucial, particularly because forex trading goes on nonstop, 24 hours a day, five days a week.
Having to monitor the market and trading process constantly throughout that period can prove tedious, if not impossible. Leaving trade unsupervised may not be a wise idea. If an upward trend suddenly reverses, it can mean big losses instead of gains if action is not taken in time.
Therefore, an automatic method of cutting loss when values decrease is not only useful, but also absolutely essential. A similar mechanism of protecting profits by cashing in on a predetermined value is also necessary. After all, profitable trading is all about operating sustainably over a long-term period, making small margins.
Thus the expert advisor is quite a boon. However, despite its advantages, Metatrader 4 and its ilk have one major drawback – they require quite a bit of programming to create expert advisors. The demands of learning a whole new programming language, just for trade, can be quite prohibitive, not to mention time-consuming.