New Investors Make the Most of Forex Trading

 

#1. Use the Right Tools to Help You On Your Way

In many ways, the iconic MetaTrader 4 platform remains the standard-bearer for forex trading, despite the fact that this was developed way back in 2005.

While the MT4 may have been specifically designed for forex trading, the MetaTrader 5 arguably offers superior value to forex investors.

For example, this enables traders to seamlessly create diversified investment portfolios, as the MT5 can be used more easily to trade non-forex CFDs. Similarly, the MT5 allows for faster backtesting and allows for DoM (depth of market) functionality, enabling the extraction of more detailed insight over time.

Similarly, the MT5 is technically supported by MetaQuotes, with this benefit not available when using the MetaTrader 4.

#2. Create a Viable Strategy

Even as a novice trader, you should have an understanding and appreciation of your risk appetite, and this can be used to create viable trading strategies.

For example, investors with a healthy appetite for risk who want to leverage the forex market’s innate volatility to their advantage may want to consider using scalping or day trading strategies. These techniques require investors to execute a relatively large number of positions during each 24-hour period, in a bid to generate incremental gains from each one.