Why getting a good Forex trading education is important? - PowerPoint PPT Presentation

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Why getting a good Forex trading education is important?

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Forex, also known as foreign exchange, is a decentralized global market where all the world’s currencies are traded. It is a $ 5 trillion dollar market and is the most liquid and less volatile market in the world. It is an internationally well-recognized business which is open 24 hours a day. – PowerPoint PPT presentation

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Date added: 21 September 2019
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Title: Why getting a good Forex trading education is important?


1
Why getting a good Forex trading education is
important
The majority of the Forex traders fail to survive
in the market because they try to run before they
can even walk. As millions of people around the
world are involved in forex trading, it is
logical that not everybody turns out to be
successful. The fact that Forex is easily
accessible and anyone with a computer and an
internet connection can open an account with a
broker and start trading, many people skip the
training part.  One may be passionate about
trading, but that does not mean that jumping into
the trading precipitously without any knowledge
will do them any good. Like all other
professions, Forex needs training too.
2
What is Forex? Forex, also known as foreign
exchange, is a decentralized global market where
all the worlds currencies are traded. It is a
5 trillion dollar market and is the most liquid
and less volatile market in the world. It is an
internationally well-recognized business which is
open 24 hours a day.
Trade-in Forex With so many choices over
3,000 tradable markets it becomes difficult for
beginners to be certain where to start from.
Therefore, it is important to learn about trading
in a detailed way. There is no point in going
through a number of courses on how to trade if
the right trading tools are not available to you
to execute your trading ideas.
3
Some of the trading tools you will need in forex
trading are discussed below
1.  A broker A broker, through their platform,
will connect you to other buyers and sellers in
the currency market or stock exchanges your
product trades on. If you want to buy any
currency or shares, the broker will connect you
to the potential seller, who owns what you are
looking for. Your broker is where you deposit
your capital to trade with. Therefore, you need
to make sure they offer the highest regulation
possible. In that way, youll know your capital
is as safe as possible.
2.  A trader charting platform The trading and
charting platform allow us to see historical
price charts of the product we are trading, as
well as provides us with order tickets we need to
manage our trade. Some people may have a
charting platform that is separate from their
brokerage platform.
4
Learning to trade in Forex   Before we look at
the steps for learning the trade, it is useful to
describe some areas within trading that you may
need to learn. Learning everything at a time may
be extremely overwhelming. Therefore, the key is
to break everything down into small units.
1.  Which timeframe will you use to
trade?   Outside of the markets, most traders
often have busy lives. Some may have a family or
a business to look after. Hence, it is very
important to structure the trading time when
learning how to trade. It is highly unlikely
that one will be available 24 hours in the market
to trade. Therefore, it is recommended to create
a routine to avoid stress in the long run. Many
beginner traders check charts at random times and
use different timeframes. Looking at markets
without a specific purpose will lead to rash
decision making and hence more frustration.
5
2. Which markets will you focus on?   The next
step will be to identify the best markets for
yourself to trade on during those times. Without
forex education, it is not possible to predict
the right market. Instead of learning to trade
on a number of markets at the same time, create a
plan on learning and trading on just one or two
markets at first. As your confidence starts to
grow, start to learn how to trade on the other
markets.
6
3. What tools will you use in deciding to place a
buy or sell trade?   Traders use either technical
analysis or fundamental analysis when making
trading decisions to buy or sell. Without a good
forex education, a trader may not know the proper
use of either of the tools. They also use a
combination of both sometimes.   Technical
analysis is the study of price charts and trading
signals. There are various types of chart
patterns and trading signals available to
traders.   Fundamental analysis is the study of
economic data, or company news to locate trends
and turning points. It is believed by many people
that a fundamental trader needs to be well
educated in economics before they are able to use
it to help with their decision making. This is
not the case as there are abundant economic
resources and trading blogs that can be of assist.
7
4. What risk management techniques will you use
to exit your trade at a loss or in
profit?   Anyone can open a trading account and
place a buy or sell trades. However, placing a
trade that is profitable, takes a lot of skill.
As they lack knowledge about Forex, most traders
do not even take the time to think about when
they should exit a trade to minimize losses and
maximize gains. Instead, they choose to
continue trading letting their emotions get the
best of them. This could be a mistake as anything
can happen in the market at any time. Hence, it
is important to use the best tools that can help
with managing our trades in the best way possible.
8
5. How can you learn the strategies used by
professional traders?   Involving yourself in the
trading world might help to speed up your trading
training. Watching how the professional traders
view the market can give you the confidence to
analyze and trade in the market by yourself.
Without a good education in forex, it is very
difficult to learn the strategies.
The Steps of learning a trade   1
Read   Reading as much as about trading is one of
the best ways to gain knowledge or learn about
trading but only from professional traders who
are actually doing it.
9
2 Watch   Another great way to learn about
trading is through seeing how expert traders do
trades in live market conditions or situations.
3 Practice   It is good to learn about trading
through trading courses. However, it is also
important to practice what you have absorbed.
Creating a demo trading account is the perfect
way to hone your skills and test your ideas in a
risk-free environment.
10
4 Repeat   The more you watch professional
traders live and the more you practice on a demo
account, the better the habits you will create.
As a result, you will have a better chance of
long term success.
Are all forex educations helpful? It is all
about finding the right source. There are
numerous sources for forex education in the
internet. However, instead of simple
explanations, some of them are complicated,
confusing and does not include the details of how
the market actually operates. Therefore, it is
imperative that the quality of the material and
the credibility of the website is checked before
you invest your time on it.   In conclusion,
forex education is important if you wish to be
successful in this market. Therefore, it is
recommended that you study and learn the
terminology, open a demo account and make some
errors so that you gain experience and become a
professional operator.
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