Metatrader 4: What it is and How It Works
There’s currently a craze about cryptocurrency trading robots inspiring newcomers to join the market, usually with dreams of making big money with little investment.
The crypto world, after all, seems to be entering a second gold rush to the point where many people believe having any amount of Bitcoin equals becoming a millionaire.
A lot could be said about these dreams and expectations, and even more about those who try to profit from them. But instead of focusing on that, let’s talk about one of the trading robots that actually exist – that is, one of those legit programs that can indeed trade for you or help you along the way. Its name is Metatrader 4.
What is Metatrader 4?
Metatrader 4 is, to put it simply, an electronic trading platform. Its existence and release predate Bitcoin by half a decade, and during its long life it has been used mostly for trading in the stock market and Forex trading.
See a pattern here? Both the stock market and Forex trading are often sold as easy ways to get rich quick, with Forex seeing a bit of a resurgence these days.
While the chances of getting rich from Forex (or stock, or crypto) trading exists, software like Metatrader 4 does help a lot on the way to success.
How can Metatrader 4 help me?
Metatrader 4 can help in several ways. The first, most commonly used one, is as an aggregator of prices and movements that also calculates all charts you might need to decide on whether to buy, sell, or hold your cryptocurrencies.
That’s, however, the most basic feature and one that many cryptocurrency exchanges will already provide you with, free of charge.
The real uses for Metatrader 4 come with its advanced features: Signals and Markets.
Let’s first look at the signals and what they are. As you are probably aware, some people are indeed making money with crypto trading.
There are a handful of star investors whose movements are closely watched and who can turn the tide of a market by just saying one word.
They’re considered to have either insider knowledge (it’s not illegal to trade crypto with insider knowledge, unlike stocks) or a very good trading instinct paired with lots of knowledge.
Regardless, these people sometimes hold enough influence to move the market. The signals feature of Metatrader 4, thus, is simple: It tracks the investment movement of these people and seeks to mimic them for you. It’s essentially a trading robot, though one whose decisions are made by somebody else – for better or worse.
Then there’s the market feature, the most advanced feature Metatrader 4 provides you with. This feature consists of a huge array of trading robots and indicators you can use to automate your own trading.
This means you can run a trading robot without knowing how to program one, or you can use the feature to look at different indicators (which can rank from market values to specific movements you’d like to be warned about) to enrich your decision making. This feature is, naturally, where you get to use a trading robot.
Will this trading robot make me rich?
Let’s not go so fast. As mentioned earlier, most scams about trading robots include promises that you’ll get rich with them.
So, in the interest of truth, let’s get it out of the way and say it’s very unlikely you’ll be rich in the short, mid, or long term by just using a trading robot. The world just doesn’t move like that.
What a trading robot can do is help you by keeping up the guard in case of sudden market shifts, where your own actions would be too slow. It can also help warn you of market changes or advice you on what to do.
In some occasions, the robot will be correct, and it is certainly possible to make money with it. But since the robot can’t take all the considerations one might need; it will also sometimes be wrong.
So here’s the thing: The robot will help you. But real success won’t come from a robot alone – real success requires extensive knowledge of the market and how it moves.
It’s that knowledge what will help develop an investment instinct on you, thus letting you know when to follow the robot, when not to follow it, and how to reprogram it so it sticks closer to your own preferences.
In short, many successful investors do use robots, but none of them owe all of their success only to a robot or app.
Another thing you should be aware of is that Metatrader 4 is generally used for margin trading – that is, trading currencies based on small market movements over a short time rather than waiting for them to gain lots of value.
Margin trading can be profitable, but naturally tends to return lower earnings than long-term trading.
What other uses does this robot has?
Metatrader 4 can be used for crypto, stock, and forex trading. In other words, all three investment markets are covered.
I’m sold. How can I get Metatrader 4?
Here’s the not so simple part. While Metatrader has a free version of the software you can get for computers or mobiles, this free version is only for Forex trading. If you’re looking to use it for stocks or cryptocurrencies, you’ll need a bit more.
Specifically, for stocks and crypto, you’ll need to work with an exchange that supports the software. Said exchange needs to be running a server version of Metatrader 4 and offer server access to its users.
As long as you’re doing this, your exchange should point you towards where to download the compatible version of the software and how to set it up. However, this is a hard requirement – you can’t just use Metatrader 4 on any random exchange, nor can you just download the software and start trading.
Is Metatrader 4 recommended?
There is no doubt that Metratrader 4 is recommended. just like MT4 , Metatrader 5 is an incredibly powerful tool that can give you a huge boost in your investments – as long as you take the time to learn both the software and the market.
So is it recommended? Yes, it is. But only if you’re willing to take the time to actually learn about investing and the market.
If you just want a little program you can install on your phone and have it made money for you without any effort, then please don’t get Metatrader 4 or any trading robots.
Getting rich isn’t that simple, and any trading robots that promise you effortless earnings over a short time are definitely scams.