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MT5 App is Recommended for Trading XM
When trading XM on a smartphone, using the MT5 app is recommended for the following reasons:
- MT5 has more indicators and order types than MT4
- The XM official app lacks indicators
This article explains how to trade using the MT5 app.
Buy Order (Long)
A buy order makes a profit if the position bought increases in value, so it is almost the same as buying stocks or foreign currency deposits, making it easy to understand.
XM allows leverage of up to 1,000x, but you can imagine a long position just like spot trading.
Select Currency Pair
If the currency pair you want to trade is not listed, tap the "+" icon to search for it quickly.
Honestly, I don't really recommend anything other than major forex pairs like USDJPY, EURUSD, and GBPUSD.
The volatility of Gold (XAUUSD) is attractive, but I often see traders on X who get obsessed with it and end up losing consecutively...
Select BUY for Long Orders
- Tap the currency name
- Tap "New Order"
- Tap "BUY" for a market order
Tap the part that says "Market Execution" to select other order methods.
You can also enter the following numbers when ordering:
- TP (Take Profit) → Take profit when this price is reached = Sell
- SL (Stop Loss) → Cut loss when this price is reached = Sell
Note that settlement or stop loss of a long position means selling.
This is why prices tend to fall easily when there are extremely large long positions.
List of Order Methods
- Buy Limit (Place a buy order at a specified price or lower)
- Sell Limit (Place a sell order at a specified price or higher)
- Buy Stop (Buy at market price when a specified price is reached)
- Sell Stop (Sell at market price when a specified price is reached)
- Buy Stop Limit (Place a buy limit order when a specified price is reached)
- Sell Stop Limit (Place a sell limit order when a specified price is reached)
Limit orders are the most common orders, appearing at the top.
There is a slight possibility that it will not be executed, but when in doubt, use a Limit Order.
- Stop orders (Buy Stop / Sell Stop) may execute at a disadvantageous price due to slippage or gaps when price movement is intense or liquidity is low.
- Stop Limit orders place a limit order after the market moves, so there is a possibility it will not be executed.
It is better not to execute than to execute at a strange price,
so Stop Limit orders can be said to be a passive but safe order format.
Sell Order (Short)
A trading method unique to FX where you profit if the price falls below the current price.
Like long positions, you can place market orders and various limit orders, and also set the following numbers:
- TP (Take Profit) → Take profit when this price is reached = Buy back
- SL (Stop Loss) → Cut loss when this price is reached = Buy back
Opposite to long positions, short positions can be said to be future buying pressure.
In fact, for CFDs like Gold, it is often seen that when short positions accumulate, the price does not fall at all and continues to rise unilaterally.
Beware of "Short Brain"!
There are market sayings such as:
- "Shorts move three times faster than longs"
- "Up in 100 days, down in 3 days"
Indeed, witnessing market upheavals due to sudden drops often makes shorting look attractive.
On the other hand, the reality is that most currency pairs and financial assets have risen against the dollar since 2019.
Especially, I often see people on X who went into debt by shorting Gold which keeps rising,
so I think you should think carefully about short selling CFDs.
MT5 Indicators
The smartphone app version of MT5 has abundant indicators and objects.
This article introduces only the particularly major Moving Averages.
Moving Average (MA)
Among indicators, the one you definitely want to display, or rather is displayed from the beginning, is the Moving Average (MA).
It is safe to say that MA is the most major indicator in the world.
Especially when the period is set to 200, it is called the 200-day line and is a setting that is strongly watched.
There are two types: Simple (SMA) and Exponential (EMA), and recently EMA seems to be used more often,
but especially for the 200-day line, I recommend displaying both SMA and EMA.
