99% of signal providers are NOT regulated, so what does that tell you?
Just learn to trade the markets if you are interested.
If you are not interested in learning but want to grow your money – seek professional financial advice. Not someone off Instagram.
How Long Does It Take To Learn Forex Trading?
This depends on how intensely you work and educate yourself on the topic.
Nothing is stopping you from consuming the right information, learning the basics and developing a style, then uncovering a strategy within a space of a week.
With the knowledge gained in that week, nothing matters unless you gain the experience – this is the time consumer.
Experience can’t be taught.
Ideally, any trader that will succeed will have made 1,000s of trades on a demo account first focusing on a profitable strategy.
Then another 1,000 or more trades, practising with small stakes that are affordable to trade with.
Only then, after 2,000-5,000 trades made and experience in a live market – will you have enough to start risking your money properly.
1,000 trades sound like a lot, but if you day trade it’s not.
Are Forex Trading Courses Worth It?
There are some very good courses out there, equally, there are some that have just copied and pasted other websites.
A good scope to start with is start off using free resources.
95% of the courses out there only cover the same info. as free resources online.
With enough searching, you can uncover the gems and learn all the golden nuggets.
Where To Learn Forex Trading?
Good news for all new and aspiring traders – in this day and age, information is freely available on the internet.
You can search Youtube for forex videos, although most aren’t that great.
You can Google different courses online, but don’t pay for a course – most of the basic stuff can be found for free.
For example, if you are a complete beginner and want to learn in a fun way – babypips.com is a good resource for beginners.
It doesn’t provide any actionable lessons – in other words, you won’t become a trader after reading their course.
However, you will have the forex basics explained to you in a beginner-friendly manner.
Or you can view our free forex course. Where we go over everything to take you from complete beginner to trader.
It’s your choice!
Is There Any Risk Factor Involved In Forex Trading?
Ever heard the saying – “you have to speculate to accumulate”?
Well, that is about risking your money to grow it.
Risk is the business traders are in.
Traders want to risk a certain percentage of their account to grow it.
Risk is easily managed though, and the good news is you can develop a risk management plan for your tolerance of risk.
Actually with any form of investing there comes risk.
Forex is seen as one of the risky Investments people can make and that is quite unfound.
The main reason why people believe that investing in currency is risky is not because of the currency asset itself and risk that brings;
Instead, the offerings by their broker through margin which gives it its risky status to most people.
Many beginners unknowingly enter the forex markets using margin and they are fearful of the so-called volatility that the currency markets are known for.
In fact, equity markets are much more volatile on a daily and annual basis.
Of course, like all Investments forex carries a risk of losing the entire investment capital that you begin with.
Also through margin carries a risk of owing the broker money if you end up going over your margin amount.
Thankfully, and responsibly, in today’s environment and with regulated brokers this is a rarity for retail traders.
This is because the level of protection that is offered to retail traders is significantly higher than it was 5 years ago.
For example, now most brokers will have a hard stop loss if you were to close out a position at a complete loss and your balance would be zero.
By entering any trade to a broker you are also agreeing to the broker that at any point where there is a margin call required that you will be obliged to pay that to cover any shortcomings of your current traits.
This is why practising and using stop losses with all of your trades is vital.
Even if they are mental stop losses you can simply set up an alert to notify you by email text message or in-app notification.
So you can adjust any positions quickly.
Is Forex Trading More Volatile Than Stock Trading?
Everyone mentions how volatile forex is.
This is false.
And people that mention it are exposing how the education industry is regurgitating what everyone is saying.
Below is the chart of the S&P 500 vs. EURUSD since 2018.
By looking at this chart, you tell me – which is more volatile?
The orange line (S&P 500).
In fact, the S&P 500 has an average daily gain or loss of around 2.5%
Whereas the EURUSD is roughly 0.5% up or down per day.
So why do so many get it wrong?
Because they are looking at LEVERAGE as VOLATILITY.
Which is obviously incorrect.
Buying and selling forex through leverage are amplified by the amount of leverage given to you.
The asset itself is NOT volatile.
The leverage you take out on the asset, GIVES you the volatility.
Why Do People Lose Money In The Forex Market?
Losing money in the forex markets is all part of the game.
No one trades the market over a longer period without losing trades.
If the question is, why do people lose all of their money in the forex market – then it’s because of poor risk management and lack of knowledge to trade the forex markets.
Is Forex Trading Profitable?
Now, this is a good question but it’s very very easy to mislead people and without the right information many can get the wrong impression.
Currency trading is profitable, because institutions, hedge funds etc. will speculate on the forex markets to obtain a profit.
Now, they wouldn’t do this if it was not profitable, right?
What you must understand is that you will not walk into this arena becoming instantly profitable – however, over the next few years, if you have to put in the serious hard work – you will be profitable.
Just like learning to play golf – you may have no idea about distance, what clubs to use at different circumstances, or even have a good swing yet.
If you expect to go out and get a professional score – you will be greatly let down.
Unless you have the luckiest round of your life.
This means you have to understand how to read chart patterns or candlestick patterns, but you have to understand what the fundamentals are doing to open up a bigger picture for you to trade through.
Yes, of course, it’s easy to relate everyone to a chart and make sure that it is meaningful through a specific chart pattern that can provide you with an opportunity.
Yes, it is a lot easier and more fun to learn about technical analysis. Yet it is the fundamentals that drive the forex markets;
It is the fundamentals that drive exactly where economies are moving towards and;
It is this data that the fundamentals provide you in black and white to be able to interpret and understand exactly which side of the market used to be on.
At the end of the day as a forex trader, you want to have everything stacked in your favour.
If you’re only going off pure price action or candlestick formations then you are only using half of the picture needed to decipher exactly where to take advantage of this knowledge.
Just by knowing this will increase your profit potential favourably.
Can You Make A Living Forex Trading
Absolutely, but not how it’s advertised on Instagram.
Every time you take money out of your account, you impact your ability to increase your position size.
So when you are on a winning streak, taking money out of your account will impede you.
Not only that, but it’s also not as easy as it sounds – because after you take money out of the profits.
If you take it all out, then you are back at the starting balance.
Which means you have to perform the same again to take out profit next month and so on.
By having this cycle, your account will not have much room to grow and therefore earn you even more potential profits.
This isn’t a great idea if you want to grow your account over time.
Can You Start Forex With No Money?
Only when forex brokers offer a special “No-deposit” deal. However, this comes with the value to be traded XX amount of times.
If you opened an account with a £50 no-deposit bonus, they may want you to do 50x turnover – which is bonus lingo for:
We’ll give you £50 but before you can withdraw that £50 you must trade £50×50 = £2,500 before we will give you the £50 in cash.
Sounds unlikely, right?
Apart from this “no-deposit” offer. You cannot start forex with no money.
Money is the fuel that is needed to trade with.
No money, no trades.
Can I Start Forex Trading At $10?
No, $10 won’t even get you to margin for a micro-lot (0.01).
Instead of focusing on investing as little as possible, to begin with, open a demo account.
Tip: Make sure you use the amount of demo money you would trade with in real life on a demo account.
Don’t open a demo account with $100,000 – when you want to open an account with $1,000.
You need to be aligned and prepared to transition from a demo to a live account. Big wins on a demo account don’t equal success on a live account.
Is Forex Trading As A Part Time Occupation Worth It?
Being able to grow your hard-earned money in any way possible is always worth it.
Whether it’s investing in the markets, forex, or setting up a side-business.
You have to take the focus away from forex being a form of guaranteed income like a normal 9-5 job.
There is no guaranteed income.
Only profits that you have generated that month.
You have to treat forex as a business.
Is Forex Trading Expensive?
Not any more.
Thanks to advances in technology, connecting to the forex markets has never been easier.
Nowadays, all you need to get started is a device that connects to the Internet and a forex broker account.
The forex broker provides the platform and access to the forex markets at a cost of either a commission per trade or through spreads.
Both of these fees are TINY compared to 5 years ago when EURUSD was 3-5 pip spread.
With these types of payments, they are taken directly from your account – so you are never in a position where you owe more money to a broker due to a spread or commission charge.
TIP: Some brokers offer “spread rebates”, which is when the broker repays you some of the spread/commission you have paid the broker.
This reduces your costs if you meet the broker’s requirements.
Why do they do this?
To get you to trade more.
Forex Vs Stocks
So why do people choose between the two?
Forex is seen as an active approach to trading, whilst stocks are seen more as a passive growth.
People that learn about to trade currency instead of stocks are mainly hunting for quick wins – get rich quick, or an easy but fast solution to money problems.
Whereas with stocks, people are looking for safer, more passive, longer-term investing.
Forex Vs Bitcoin
On a trading level, they are both the same.
Forex is currencies paired with each other.
Bitcoin is paired with other currencies too like GBP, USD and EUR.
So in principle, they are the same thing.
The main difference is that Bitcoin is volatile compared to fiat currencies.
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