Read these 5 Forex Training Tips tips to make your life smarter, better, faster and wiser. Each tip is approved by our Editors and created by expert writers so great we call them Gurus. LifeTips is the place to go when you need to know about Forex tips and hundreds of other topics.
During your forex courses, self-learning or when you watch forex videos, you should be asking yourself the following (and seeking the answers actively) fundamental questions:
-- What are currency pairs, and how does this amplify the structure of the forex market?
--What is a bid/ask price, and how does this impact trading?
--What is the spread, and how does the spread impact the bid/ask price or broker fees?
--What is a pip, and how do brokers use pips for their income?
--In forex, the equity value of all open positions verses the underlying market price is constantly in flux, how can a trader use this to their advantage?
--Forex is an over-the-counter market. Nearly all trades are done electronically, there is no NY Stock Exchange with people yelling and bustling about. How does this differ from the traditional ‘open outcry' stock market, and what are the benefits of trading electronically? More importantly, how can electronic over-the-counter trading help you formulate a trading strategy?
There is a wealth of forex information available online, including online video tutorials, telephone assistance and a trader's forum that will assist you in learning currency trading. For instance, some sites offer interactive learning courses and some are even free. Typically, you need to register as a member. After that, you can start the video presentation.
Some sites let you train to be a pro trader for several days. Check webinars for self-learning in currency trading courses. You can also pay to participate in currency trading courses through several vendors. You can find two-day courses that cover nearly all aspects of currency trading. There are also mini-courses and articles that are available for free.
In currency trading education, you should be learning a small amount of trading history, as well as the basic functions of currency trading. This includes knowing the trading instruments, currency pairs and pips. Your currency trading education should include how to use leverage at both high and low ratios to minimize risk and maximize profits. Currency trading education should also inform you of the costs and risks associated with the forex market, especially in regards to money management and overhead. Economic indicators and market indicators, as well as how these impact trade and currency values, should be a strong focus in your currency trading education.
Currency trading education should also focus on how to read technical and fundamental analysis, which will include how these are generated and interpreted. Furthermore, currency trading education cannot ignore how to trade using forex trading platforms, how to perform research and what resources are available. Currency trading education should help you develop a strategy for entering, trading and exiting the forex market.
Currency trading education should really show you what the forex market is, how it works, how to interpret charts and what resources you need to trade in the forex market.
If you have already watched currency trading education videos, experimented with a demo account or asked questions on a traders forum, but still want more information before you commit to the forex market, there are many online resources available to help with currency trading education.
The National Futures Association (NFA) offers Forex Online Learning Program, an interactive currency trading education program meant for individuals interested in learning more about the forex market.
The Investor's Clearing House has a wealth of resources that are verifiable. They offer currency trading education in multiple formats.
The American Savings Education Council (ASEC) offers free public currency trading education regarding financial security for private and public traders.
The Better Investing Community offers information, training, resources and a community-based interface for investors and traders. This currency trading education resource is also recommended by the NFA.
Other sites to check for information include NASD and The National Endowment for Financial Education.
The best time to start foreign exchange training is right now. The best place to start foreign exchange training is the Internet. It seems confusing at first because there are quite literally millions of websites dedicated to foreign exchange training. The best place to begin learning about the right (and wrong) resources is fxstreet.com. This web-based firm offers a wealth of knowledge on where to go with a list of registered brokers for you to contact.
You'll find directories to established brokers and their histories. They also offer free chat for beginner, intermediate and advanced traders. FX Street has blogs from multiple sources where you can read and participate in their team members and partners' blogs. They also have an entire web page dedicated to foreign exchange training.