Do you want to start trading but don’t know where to begin? The first step is to determine your trading profile, so that you can choose a trading platform that meets your needs and allows you to implement your trading strategy in the best possible way.
Let’s find out how trading platforms work and how to choose the best one for you.
What is a trading platform?
If you’re wondering how do trading platforms work, it’s very simple. A trading platform allows investors to buy or sell assets such as stocks, commodities, currencies, indices, and other financial instruments.
A trading platform is offered by a broker who acts as an intermediary between you and the financial markets. Therefore, it is through a broker’s platform that you will be able to invest in the markets to make profit.
But before you start trading the financial markets with real money, it is important to work on your trading strategy, because this is what will determine your trading needs.
What do we mean by trading strategy?
Every trader must develop a strategy for making trading decisions and investing in the markets. It is a precise trading plan with risk management rules and all the steps a trader needs to follow to enter and exit positions.
You need to think about the type of market analysis you want to use (fundamental analysis or technical analysis), the markets you want to trade, the timeframe you are going to analyze, the indicators you are going to follow, etc.
In this way, you will know what you will need to best implement your strategy. If you use technical analysis in your trading for example, you need powerful trading software that allows you to apply technical indicators, such as RSI, MACD, moving averages or Ichimoku clouds, as well as drawing tools that allow you to draw trend lines, as well as support/resistance levels. If you want to trade automatically, you must choose trading software that allows you to use trading robots with advanced configuration options, giving you the flexibility to set up your robot as you see fit.
Once you have determined your needs, it is important to choose from reputable and secure trading platforms, such as MetaTrader, TradingView cTrader, or Ninja Trader.
What is the most popular trading platform?
Choosing an online trading platform is not as simple as it sounds,and it is an important decision that will impact the success of any trader. After all, you are going to invest your money with a broker who will offer you a certain trading platform, and you need to make sure that it is reliable.
Whether you choose Metatrader 4 or a broker’s proprietary offering, there is a learning curve for every option. To get started with Metatrader, commonly known as MT4, you’ll typically need to visit your broker’s MT4 download page to install the software, while some broker platforms are available within your web browser.
There are also dedicated mobile apps if you prefer the ability to trade on the move. The decision of which platform to use must be taken seriously, as the wrong choice can cause you to lose a good part of your capital quickly.
Among the most popular trading platforms, MetaTrader is often at the top of the list because it is robust and fast, offering advantageous trading conditions and a customizable trading environment that allows each trader to create his trading terminal as he wishes.