How To Learn Forex Trading
You’re at the start of your trading journey with looking how to learn forex trading.
The good news is, it’s easy to learn.
The bad news is, you need to practise and understand you will make mistakes.
It’s the nature of the game, risk money to make money.
Let’s go through the ways on how to learn forex trading for beginners.
How To Learn Forex Trading – All you need to know
There are many ways to learn how to forex and they can either be free or cost funds.
Before investing your money in education and trading strategies, it would be best to read around the subject first before committing to your first investment: yourself.
Forex isn’t about loading up a chart and hoping for the best based on some indicators.
It’s the ability to understand trends and where there are pockets of opportunities in the markets to take advantage of.
With that being said, here are a few ways to learn to trade:
Learn trading by going to local seminars or attend online webinars.
These are only as good as the people hosting them.
You should also be aware that most of the free seminars/webinars are just a smokescreen for a sales pitch afterwards.
However, there are some good – genuine – providers out there who give away value in the hope will use their service/product in the future.
These are usually focused on a specific topic, so you may need to go to a few of them.
Especially considering how diverse and open currency trading can be.
Learn trading by reading online.
One of the more popular ways to learn.
Usually taught through a forex trading guide online or downloadable ebooks, they provide education that works around you.
You can simply stop and start as you desire.
Most forex trading courses provide real value to beginners, but very few provide a long-term strategy or methodology to doing it yourself.
In fact, most online courses tell you the same as Babypips (and they have the nerve to charge you for it)!
With that being said, most people would benefit from learning to trade by reading most beneficial vs. seminars/webinars.
Learn trading by watching videos online.
Mostly regurgitated stuff online from other people.
But this method is perfect for visual learners.
Videos tend to walk through the process slightly better visually.
You can find videos about forex trading on Youtube for free, although 99% of the videos on the topic are exactly the same.
Learn trading through forex trading books.
There are a few good books on forex trading out there, books that I’d highly recommend reading at least once to absorb the golden nuggets available.
The best forex trading books are available online and are easy to obtain.
Or if you are lazy, there are some summaries out there too but they could miss out vital parts.
However, most of the books are both practical and theory based – so you will have to combine the information shared in the books to devise your own trading strategy.
With that being said, cherry picking the best parts from different experienced traders is not necessarily a bad thing.
All of these methods are good.
However, the key to any education isn’t about learning but applying the knowledge.
Most content out there is regurgitated info. – even worse, some people copy other content and sell it online or put it in a video and pass it off as their own.
The key thing missing from this is the actual educator you can ask questions to directly, this kind of support comes with most online trading education courses.
Why Learn Forex Trading?
Unlike traditional investing, forex trading can be seen as a more aggressive approach to increasing your capital returns.
Many people choose to trade forex because of its “fast” returns.
Many people fear forex because of its possibility to lose all their money “fast” too.
But here is the truth.
Forex trading is no less risky or rewarding than any other form of speculative investing.
The difference, which makes the risk higher, is that forex is commonly traded with leverage – which enhances your trading sizes based on how much you put down as margin.
Otherwise, to trade 1 lot ($100,000) you would need to put up $100,000 as risk.
Whereas with leverage, you can simply put up $1,000 – giving you a leverage of 100:1.
Leverage is why the rewards appear faster & the magnitude of losses are greater.
With that being said, this does also lower the barrier to entry in the forex markets too.
Maybe too accessible through some brokers offering extraordinarily high leverage.
This is where risk management comes into play, so it is important to understand this aspect of trading currencies.
Risk aside, trading the markets can be quite simple when it comes to finding areas of the market that shows potential.
The core reason why people look into forex trading for the first time, is down to a greater risk and reward profile + ability to trade 24 hours a day, 5 days a week.
Can I Teach Myself To Trade Forex?
Absolutely, there is an abundance of resources in books and online for you to review and practise without even needing to chat to another person.
However – I will say that finding other traders to chat with – or going through an online course with an instructor – can help speed up the process as they’ll be able to explain things you may not understand in another way.
Equally, they’ll be able to help smooth out the learning curve by teaching you how to avoid common beginner mistakes from their past experience
How Do I Start Learning Forex?
You can start by going through our free forex course – or quite simply, Googling how to trade forex and going through the 1,000s of websites with information on forex.
It is best to start with the basics and something that is free.
This is so you can gauge your genuine interest to learn how to trade.
If you get bored after the first paragraph about what currency trading is – there is no point persisting in learning about the subject, is there?
However, if you are still enthusiastic about the subject – then progressing to a paid course or seminar, or even joining a community, would be a great next step.
Can You Get Rich By Trading Forex?
You can make some serious money trading, as the earning potential is unlimited.
However, you can also lose the lot.
Forex is NOT a get rich quick scheme, nor is it guaranteed income.
You are risking your OWN hard-earned money for the prospect to grow overtime and be worth more.
Avoid thinking about how quickly you could make money trading forex.
Instead, you want to focus on getting the basics and a trading strategy perfected – or as perfect as possible.
Then you want to make sure you follow this strategy and make consistent gains, whilst following strict risk management.
Together, you can surely grow your capital by trading forex.
What Is The Best Way To Learn Forex Trading?
The best way to learn forex trading is to be completing a course from someone who has actual experience trading and following the course on a demo account.
Again, you can completely research who to choose, but certainly do your due diligence.
How To Learn Forex Trading – Conclusion
Overall, there are many avenues on how to learn forex trading.
The most important factor is doing what is best for your learning style.
It is easy to get wrapped up with the opportunity’s forex can present, but at the very least, remember that this is a risk-taking business.
You will lose money on trades from time to time.
This is very natural and it’s impossible to have a 100% strike rate on any trade for life.
With that being said, if you fear losing money – you shouldn’t trade forex.