Forex lessons for your first steps into forex market
Table of Contents
- 1 Forex lessons for your first steps into forex market
- 2 Different types of forex training currently available
- 3 Watch online forex videos
- 4 Take advantage of tutorials online
- 5 Forex webinars should not be missed
- 6 Online forex trading courses
- 7 Live forex trading sessions
- 8 Practice first with a forex demo account
- 9 What can you learn from forex lessons?
- 10 Learn forex trading lessons by changing the way you think
- 11 Learn forex trading terminology
- 12 Start to learn forex trading with these few simple tips…
So you’ve decided to enter the world of forex trading! Whether it’s purely for a bit of enjoyment or to make some real money you really should think about forex lessons. Before your first foray into foreign exchange trading some form of forex training is highly recommended. There is a wealth of information available for you to use, some of it is free and some may cost a bit of your money. You can use the online resources if you have a computer and internet connection or maybe visit a local education centre or library to enrol in a course.
Different types of forex training currently available
The world of foreign exchange trading is complex, with new terms to learn, strategies to develop, markets to understand as well as gaining experience in the actual process of trading itself. You could, of course decide to just go for and start trading right away. However, there are other options, that could mean you earn more money or at least don’t lose so much in the first few months.
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Watch online forex videos
The internet is a boon to all new forex traders. It gives you the opportunity to learn about forex trading, either as part of a group or on your own. By watching online videos you can learn the basics or more advanced ideas of the forex market. There are many websites who offer this facility. Some of them are actual forex brokers or traders and some are made by ordinary people who have entered the forex trading market and want to share their experiences and what they have learnt.
Take advantage of tutorials online
Forex trading can seem very complicated when you first look at it. Terms such as currency pairs, leverage, pips and forex strategies all seem a little perplexing. The more you can learn about this subject the less intimidated and confident you will become. With forex tutorials you can learn from the bottom and go as deep into the subject as you want. Forex trading is an ongoing learning process and there are always new tutorials uploaded on a regular basis in order for you to develop your knowledge further or maybe follow big online resource sites like this site. On the whole this way of learning is entirely free. You just need access to a computer and the internet.
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Forex webinars should not be missed
Webinars are an interactive platform that involve a tutor and a group of participants. There is a plan with each webinar but the group is allowed to answer questions and start discussions. They usually last less than an hour and are therefore bite sized pieces of information with a particular area or subject being discussed. Many forex trading companies hold regular webinars and can inform you of any upcoming webinar events with an email. You confirm whether or not you will be attending online and quite often will get a reminder emailed to you shortly before the event.
Online forex trading courses
Whatever level you want to attain there is an online forex trading course just for you. Countless websites offer regular training course to help you learn forex trading in the comfort of your own home. Some of these course are relatively short and some last for several weeks. You learn at your own pace and the cost can vary. Some of the course are given and compiled by very knowledgeable and experienced forex traders and others by successful entrepreneurs. If you don’t have regular access to the internet and a PC or laptop at home you could find there is a forex training course taking place near your home. In many large cities local education centres and businesses often hold courses for those new to the foreign exchange market.
Live forex trading sessions
YouTube has a huge amount of videos, tutorials and courses available for the forex trading novice. However it also has another wonderful tool every newcomer would be advised to take a look at. You can follow live trades as they take place, following a trader as they buy and sell currency pairs and getting advice and an insight into why they played the market in a certain way. You can look at their strategies and decide whether you want to adopt one like it or make one of your own.
Practice first with a forex demo account
What better way to learn forex trading than to trade but without the risk of losing any of your own money. With a forex demo account, you trade with play money. Various forex trading brokers have free demo accounts for their clients. It is a good way to find out how a broker works as well as try out some of their trading platforms, before you decide to open up a full trading account. There are plenty of websites that offer the best forex bonus offers for starters like you. You get the opportunity to test out your strategies, with real time market news and prices, but none of the financial risk.
What can you learn from forex lessons?
Forex lessons can vary in length from one or two hours, one or two days or be spread over several weeks. The depth of information and skills they impart will also vary accordingly. There are, however, a few basic areas you should consider learning about when deciding which forex lessons to take.
- learn about currency quoting and what forces make currency prices change
- learn about currency charts and how to read and analyse their information
- what are trends in the market and how they affect currency markets
- learn about risk assessment
- understand how major economic events can impact on the market and learn to anticipate and react to them
- learn about money management.
Learn forex trading lessons by changing the way you think
Being a currency trader is fairly simple once you have learn what it is all about. There are also a few personal skills you need to learn if you are going to be successful. You need to develop a lot of self control, particularly in respect of your emotions. An ability to admit when you were wrong is also a valuable personality trait. It will happen, from time to time, that you ar wrong in your trading decisions and the important is to learn from those errors in judgement and move on.
Learn not to get too carried away with the trading experience. Make sure you get enough sleep and try not to stay awake all night thinking up new strategies or watching the markets. The forex trading market is open 6 days a week, 24 hours a day. It would be easy to get carried away, afraid you are going to miss the next big investment opportunity.
You need to be patient when waiting for the right trade. While waiting you can take advantage of all the tools available to you for watching the market. The best forex trading lessons will introduce you to a wide variety of tools and show you best how to use them to your advantage.
Decisiveness is a basic function any trader should be able to exhibit. Knowing when to enter or pull out of the market, and not “um and ah” over your decisions is vital to successful trading. Don’t hesitate or you will be disappointed with the price and hence the profit you get. It is only natural to be excited and overjoyed when you have a winning trade. On the other hand you will be like to feel sad and disappointed when the trade goes sour. These kind of natural human emotions need to be controlled or you will find yourself over-reacting to a situation or trade and trying to get your money back.
Learn forex trading terminology
- BASE CURRENCY This is the first currency in a currency pair, and the currency your account is denominated in.
- BID PRICE/ SELL QUOTE Usually displayed on the left, it is the price at which you can sell your base currency.
- BUY QUOTE/ SELL PRICE Displayed on the right, it is the price at which you can buy your base currency.
- CURRENCY PAIR A foreign exchange deal is always made up of two currencies. Currencies are always bought and sold in pairs. When one is bought the other is sold. The first currency in the pair is the base currency, the second is the counter currency, also known as the terms currency.
- LEVERAGE This is expressed as a ratio and refers to the margin requirements enforced by your broker. If the broker you are using asks that you maintain a 2% margin, it means you must keep 2% of the total value of a forex trade in cash in your account. 50:1 is 2% expressed as a ratio.
- LOT The size of a transaction is measured in lots. One standard lot is typically 100,000 units of the base currency. Some dealers, however, offer trades of 1 unit at a time.
- MARGIN The deposit required to open or keep a position. It can be free or used. Your free margin is the amount that can be used to open new positions, while the used position refers to the amount being used to maintain a position.
- PIP Also known as points this is the smallest price increment a currency can make.
- ROLLOVER Settlement of a spot transaction usually occurs within 2 days. You can rollover a transaction, but you will be liable to interest charges.
- SPREAD The difference between the bid and sell price.
Start to learn forex trading with these few simple tips…
- Be realistic in your goals. Nearly everyone who enters the forex market wants to make money, with many have dreams of making truck loads of it. It is important to realise that it isn’t as easy as just having a dream. You have to work at it and gain all the knowledge you can. Forex lesson are an important part of your journey.
- Be cautious about bright promises. You probably won’t become a successful forex trader overnight.
- Don’t be overwhelmed by it all. Take advantage of all the resources available to you. Enrol for forex training courses, read forex lessons at every opportunity. Avail yourself of all the experienced and knowledgeable people out there, to help you on your way to becoming a successful trader.
- Open a demo account. Forex trading can be very exciting, but you need to learn to control your emotions. Making use of a demo account to hone your skills is an opportunity too good to miss.
- Don’t rush into trading with your own money. If you really don’t have the ready cash available to cover the inevitable first weeks or months loses, you really should practice your skills with a demo account. You could open a small live account if you wish to experience the thrill of trading with real money. If your finances are strictly limited keep it very small, while continuing to practice with your demo account.
- If an offer seems too good to be true it probably is. If you read somewhere or someone comes to you with a strategy that is sure to win you millions be suitably sceptical. If there was a way to invest 100 pounds which guaranteed enormous profits, the financial systems of the world would collapse.
- Forex trading is a learning process. Learn forex trading in one simple session? Impossible! The forex market is constantly evolving and as such you need to keep your forex training up to date.
Over the coming weeks and months we will help you in your journey through the world of forex trading. We will widen your horizons and increase your knowledge through forex lessons, training and tips.
We hope to help you analyse the financial and economical markets to aid in your trading decisions. With knowledge and information on your side, you are sure to enjoy your trip along the forex highway. It doesn’t matter whether you are in it for a bit of fun or as a way of realising a new income, to learn forex trading is the right way to go.