Financial markets are built on the principle of making a profit by trading the difference between the buy and sell prices of assets. A universal asset is a currency. Even those who have never dreamed of dealing with the stock exchange know that currency can be beneficially sold during its growth in price or beneficially bought during a downturn. The winner is the one who is constantly aware of market trends, ready to act and has the necessary theoretical knowledge. The latter is the most difficult because no university prepares traders, and a huge amount of literature, special courses and training programs can be really confusing. The possibilities of the Internet have increased both the activity on the exchange and the rates, as well as the volume of information - qualitative and low-quality.
There is no unanimous opinion on this issue. If a person wants to understand how to start learning to trade, he can use one of the following methods:
- Studying books about trading on the stock exchange.
- Attend courses.
- Watching the trading of successful traders.
- Make trades independently and learn from your mistakes.
If a person wants to learn how to trade, experts advise not to focus all attention only on books and courses for beginners, but to study trading on the market, watching professionals and gaining experience. The theory without the practice of placing orders cannot guarantee a profit.
Statistics show that most traders come to the market without having a specialized education. This happens because today the Forex market allows almost everyone to try their hand at trading. Having neither experience nor knowledge, a person starts to lose money. At this moment, he becomes aware that a trader is a serious profession that requires certain training.
However, not everybody who has just come to the market can find a person who is ready to explain the basics of opening trades. For this reason, the question arises: is it possible to get some Forex trading education on your own?
Free Forex education is possible. All information related to placing trades on Forex is freely available on the Internet. There are no secrets, which are known only to the trading guru. Taking advantage of the search, a person will be able to find all the answers to emerging questions on their own. It is important not only to know the information but also to be able to competently manage it.
Trading is a profession that requires a certain level of intellectual development. A person who is unable to organize his or her own training will find it more difficult to react quickly to the rapidly changing market and make the right decision.
If you are a complete beginner, start with the basics, learn the terms, what is a trend, indicators, trading terminal, what is a "bull", "bear", trader, what is the difference between a broker and dealer, etc. On the PaxForex website, you will find many training articles, where different types of trading, terminology, methods of market analysis and forecasting are described.
However, without real practice, there will be very little benefit, so it is desirable to start trading at the same time. For this purpose, you can open an account with a reliable broker.
When it comes to forex trading courses, they can be online and individual ones.
Online courses can be compared to distance learning in a college classroom. The instructor provides PowerPoint presentations, e-books, trading simulations and so on. The student will move through the elementary, middle and advanced levels that most online courses offer. For a trader with limited knowledge of foreign currency, such a rate can be priceless. These rates can range from 50 to hundreds of dollars.
Individual training is much more specific, and a trader is advised to take a basic Forex training course before taking advantage of this option. An appointed tutor, who is usually a successful trader, will work with a student to train them in strategy and risk management but will spend most of their time learning how to place real trades. Individual training ranges from $500 to $10,000.
Trading courses may require a strong commitment (if individual coaching is involved) or maybe as flexible as online podcast classes (for online training). Before choosing a course, carefully consider the commitment in terms of time and cost, as it varies widely.
If you do not have a few thousand dollars in your one-to-one tuition budget, you may want to take an online course. However, if you plan to quit your job to trade full time, it may be helpful to seek professional advice - even at higher costs.
To ensure that your trading course is fair, read its terms carefully, determine if it promises anything unreasonable, and recheck its credentials and certification for authenticity. In particular, beware of sites that produce hypothetical results, or that show actual results without indicating that "past results are no guarantee of future results".
Needless to say, that in order to trade effectively, it is very important to get some Forex education. You can find a lot of useful information on the Internet. Take some time to read about how Forex trading works, how to trade, the time of active Forex trading and risk management to get started.
As you can learn over time, nothing compares to experience, and if you want to learn how to trade Forex, the experience is the best teacher. When you are just getting started, you open a demo account and try your hand at demo trading. This will give you a good technical basis for the mechanics of Forex trading and getting used to working with a particular trading platform.
The fundamental thing you can learn from your own experience is the value of closing your trade and exiting the market when the reason you entered the trade is invalid.
It is easy for traders to think that the market will return in their favor. You will be surprised how many traders fall into this trap and are amazed and heartbroken when the market only presses further towards their initial trade
One more way (and the most important one) to get Forex education is practice. Since no matter how much time you spend learning and what candlestick pattern you can numerate, it all vanishes once you get your hands to real trading. What you need to do it to open an account (at least demo) and start implementing the knowledge gained to the real world. Here we get another controversial situation - some traders are sure that demo trading brings nothing but bad habits and the feeling of invincibility. Others think that the best and the only way to learn is trading with real funds.
So, what kind of account should a beginner trader open to learn Forex trading? Even with a whole lot of opposite opinions on this subject, everyone agrees that a demo account is just a preparatory stage before entering the world of trading. And yes, it does make sense since everybody needs to familiarize themselves with the trading terminal, to check what this or that button does. A person who decides to do it seriously sooner or later will have to open a real trading account and make a deposit there. As far as the demo account is meant to fully simulate the real one, the psychology of trading will always be different, because trading real and virtual money is not the same thing. Working on a demo, you can learn the technical aspects of the trading terminal, indicators, learning all types of orders, how to open them, how to set stops, but no more than that. You will not learn how to apply real money management rules and won`t discipline yourself learning on a virtual account. It is possible to master and follow the strategy correctly for as long as you like, trading virtual millions in cold blood with high volatility. But you can immediately get confused and remove all the stops as soon as it affects the real account with some pair of hundreds of dollars. A virtual account can't show you if you have enough guts to deal with actual trading, it takes a real account and time. A cent account will be a compromise option for a demo or a real Forex account. It is perfect for those who have doubts and cannot choose between the two types. It's the same as the usual account, but you can take not a dollar but a cent as a basis there, and all measurements can be made there adjusted for two characters, for example, 100 dollars in a cent account are displayed as 10000 cents being full and real, it has almost all the advantages of an ordinary dollar account, but the amount there is less, so the threshold for entry into the market and the fear of losing the deposit is much lower.
Once you have gained some experience and got a clear understanding of what you are doing, not opening trades just for the sake of it, you can try to open a Standard account and deposit more funds. Understanding what you are doing comes down to getting dispose of your bad habits, reading the market and even mastering your emotions. if you think you can do it, then you have all the chances to become you can be successful in trading the Forex market.
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