Over the last two decades Forex Trading has significantly increased its popularity and is now the most traded market. As a consequence the learning materials on the topic have expanded and it may be hard to undertand where to start. In this article we will see how you can learn to trade currencies. Study, experiment, find a coach, watch videos and you will learn how to trade in the Forex Market.
You must know that only the 5% of the traders regularly make money. Many companies want you to believe that trading currencies is easy and that you can start making money overnight. Why do they want you to believe this? Marketing! They want to sell you something, profit from your losses or earn commissions (spread). The reality about Currency Trading is that to learn it you will need to invest time and effort and the good news is that with the proper education and discipline you could be able to join the successful 5%.
How to Learn Forex Trading
If you don’t have strong fundamentals in currency trading you will probably not last long as a Forex trader. I understand that the enthusiasm of opening a trading account and start clicking buy/sell to see growing your account balance is high, but think twice before doing it. Without clearly understand how the market works, the terminology used, the players involved and concepts such as leverage, risk management and margin, you could have your trading account wiped in the first trading day.
Luckily, thanks also to the increase of its popularity, you now have many options to learn Currency Trading. The ways to learn Forex Trading are many, between the most popular we can find: online lessons, video courses, seminars, tutoring and books. Since we are all different, we all have different skills, personalities, level of knowledge, financial availability and personal life, while one method may be suitable for someone, the same may not be the best option for some else.
In the next paragraphs we are going to examine the strength and weaknesses of the most popular learning methods so that you can have a better idea about which one is more ideal for you.
Forex Seminars and Workshops
Seminars and workshops are training events usually presented by experienced and successful traders. The aim of these events is usually show successful strategies and money management rules and/or products to help with trading, for example trading platforms, indicators and signals. Seminars normally don’t cover the basics and for this reason they are not ideal for beginners and more suitable for traders with already a good knowledge of Forex fundamentals and terminology.
Seminars have some very good advantages, you can indeed interact with the presenter asking questions and meet fellow traders to exchange opinions and do networking. On the other side though, seminars are usually quite expensive and require your personal presence in the venue.
Tutors are experienced traders (hopefully) that decide to teach how to trade to other people. Having a dedicated teacher is an ideal way to learn, you can absorb his/her knowledge and have your errors corrected. The tutor can show you secret strategies and teach you the discipline to become successful. Having a mentor is probably one of the most expensive ways to learn how to trade currencies, however, it could also be one of the most effective.
Videos are a very easy way to learn, there are many on popular portals and they are accessible with any modern technology for free. Videos are more suitable for beginners because they are presented in a simple way, supported by images and explanations. The disadvantage of learning through this media is that it is hard to find good videos focused on specific topics and strategies, furthermore these can be created by everyone and it can be hard to verify their authority.
Internet is full of online courses for any topic, Trading and Forex included. There are many available for free so that you can get started with the basics, there are also more advanced courses that usually require you to pay a fee to access them. You can check out Udemy for some introductory and advanced courses.
Last but not less important, there are books about Forex. Books are a traditional method to expand your knowledge, many are a concentrate of useful information. While rarely it is free, the good thing about Forex literature is that it can be tailored to specific audience (beginners or advanced traders) and can focus the content on specific topic, for example fundamental analysis, technical analysis, price action, risk management, psychology and so on.
The information are usually well organised and presented with a logical sense. While many are very good, unfortunately not all books are well written and with helpful information. With this website I want to help you choosing the right Forex book for you, check out the Reviews section. The article Best Forex Books for Beginners may help too.
One of the first rules in investment and wealth management is: don’t keep all your eggs in one basket, DIVERSIFY! You should do the same learning Forex, don’t limit yourself to learn from only one resource. You will be able to achieve the best results using different methods: watch some videos, follow some courses, read a few books and so on. This will help you to see different perspectives and understand multiple opinions. Are you excited about Forex Trading? Learn how to do it, but remember, you want to join the successful 5%!
Get started learning how to trade in the Forex Market. Pick some of the above and begin learning. When you understand the basic logic and jargon you can install MetaTrader and open a Demo account. The practice phase with a Demo account is part of the learning process for beginners and also experienced traders. In Forex Trading like in everything else, you never stop learning!
What would be your favourite? How are you learning, or planning to? Leave a comment and share your opinion and experience.
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