Forex Trading Education 10

7As we already stressed in our previous articles we at FXUniverse believe that educating yourself is the single most important thing in trading any financial markets and thus forex too. Investing in your knowledge has no substitute and has to potential to turn you into a conscious, objective, knowledgeable, and, of course, highly profitable trader.

Finding relevant resources

With the vast amount of information available, these days both on- and offline the real issue is to filter it and find the valuable sources. We will help you in that with this and our future articles on the different aspects of trading, our and show you the most exciting sources of readily available and mostly free information.

You will only have to find the time to thoroughly go through them and draw the conclusions for your own approach and trading style. As there is no such thing as “the perfect trading strategy” it’s important that you take every bit of knowledge with a grain of salt (even if it comes from us), and not because you don’t trust the author—it’s just that everything means something different to every trader.

Always adapt what you learn to your personality!

What topics to consider?

Currencies are influenced by a lot of different factors from basic economic trends to central bank policies and market sentiment. Getting familiar with all the important parts of the puzzle will help you immensely in understanding underlying trends and also save you from a lot of surprises. We will help you in that by our in-depth articles about the crucial topics and trading strategies. Here is a list of the primary topics to get into:

  • Technical Analysis and Charting
  • Trend Following Strategies and Mean Reversion Strategies
  • Day-trading, Scalping, Swing trading, and Long-term Investing
  • Momentum Indicators, Oscillators
  • Economic fundamentals, interest rates, monetary policies
  • The role of economic news releases

Some of these might seem complex at first but experienced traders know that the bigger the trend is the easier to spot the factor behind it. So keep it simple and try to learn the essence of every topic; use only a few indicators for example or concentrate only on the most important economic measures—always look for the simplest explanation!

Where should you be looking for?

There is no one perfect answer to this question either. Everyone has a different learning process; some prefer reading books or shorter material like blog posts and articles. Others might like videos and webinars more. More advanced traders are likely to effectively learn just by looking at trades of successful traders as they will know what to pay attention to.

Nowadays this is much easier to accomplish than even just a few years ago as a lot of “social” trading platforms emerged recently. Those not only let you follow someone, but also offer great ways of interacting with the best traders. This “coaching” can be invaluable as it comes from real, experienced, and accomplished traders. So to wrap the different sources here is a list of the possibilities:

  • Books
  • Quality Blogs and Articles
  • Economic news analysis
  • Webinars and live trading videos
  • Following successful traders

The myth of the Holy Grail, and other things to avoid

In forex, it is often more important to know what to keep away from with a lot of people trying to exploit newcomer traders on the market. From the obvious scammers to elaborate schemes there are many different levels on which they operate. But using common sense it is relatively easy to spot them.

For example, be aware of those who want to sell the “Strategy That Works Every Time in Every Market Environment” and will do that forever. I can assure you that it’s not real. Most likely the strategy was constructed to be highly profitable with back-testing (this is widely known as curve-fitting), but that doesn’t mean that it will continue to work in the future. In fact, there is a tendency concerning these “fitted” strategies to fail miserably sooner or later.

Also, individuals or companies that seem very eager to teach you or manage your money without a proper background should be suspicious. Think about it if they are so good why do they need aggressive marketing strategies to reach new customers?

Learn from yourself!

We haven’t talked about one of the most important, but often overlooked, source of education, your own trading history. You would be amazed to know how much you can learn from analyzing your trades. Both spotting weaknesses and finding the strengths in your approach is very easy if you are able to objectively evaluate your performance.

In order to do this, you need to keep a comprehensive trading journal containing all the crucial information about your activity, from the used strategies to the times when you trade and what your plan was when you entered the trade. Did you use a stop-loss order? Did you have an exact target price? These are all very useful inputs for hindsight analysis.

With today’s advanced trading platforms, tracking your performance is easier than ever. When you decide on your broker you should consider this aspect as well.

Wrapping it up

Now that you know the basics you are ready to start your journey towards successful and consistent trading. We offer you help along the way so stay tuned for more detailed posts in the mentioned topics. And don’t forget to start trading on a demo account. Although it’s not the same as live trading, it will give you the initial experience without the accompanying risks. You can also start your trading journal and begin evaluating your performance.

Good Trading!

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10 thoughts on “Forex Trading Education

  • Adams

    I am new in trading. I want to earn consistent profits in trading but so far I have lost a lot of money because I always invest in trading but never invest in learning so after reading this article I have realized that investing in learning is as important as investing in trading. Without doing this, you will never learn the art of making profits in your forex trading. So it’s very important that we look for ways where we can learn this wonderful business.

  • Dillon

    Good article but I think few points are missing in this article. Most traders I know prefer FCA regulated brokers but my personal best broker is not FCA but is regulated in Australia. Also you can’t judge any broker from its demo account because in demo account trade execution is very fast but when you trade in live account then you will know which broker is best. Server uptime is very important. I have experienced a lot of MT4 brokers which stop working in major events or news. Also spreads is very important while choosing broker. I prefer fixed spreads brokers always.

  • Mike Trading Club

    Forex trading with proper education and research is very risky. When I started trading, there was not many options for a person like me who is living in an Asian country to learn trading. But in today’s world because of YouTube and social media, there are a lot of options to study forex. There are some very good YouTube forex trading channels, run by very professional traders where you can learn about almost everything about trading all you need to do is to research carefully and give your focus in learning. In today’s world, because of rapid advancement in communication, you can learn any skill while living anywhere in the world. There are many Facebook groups and pages and so many WhatsApp and telegram groups where you can learn from very professional traders. So I suggest new comers to use every possible channel to learn about trading. This will control their risk losing money in trading and become fulltime professional trader.

  • Rolling Fx

    In my early days of trading I learnt most things from my friends who were doing trading already. Then I spent few weeks trading in demo account and I learnt lot of things through demo account. After a few weeks, I opened a live account and then I started learning something new every day. Too much ignorance about anything is bad and too much knowledge is also bad in trading. I personally know some people who know basis of forex trading and they are making good money. On the other hand, there are few traders who are very knowledgeable but they are not good in making money. They are good analysts but not good traders. So yes, knowledge and education is important but sometimes, too much education and knowledge makes you full of fear to do trading

  • John Boyle

    Forex education website has become a very lucrative business for some time and you can see mushroom growth in forex education website. There are many forex educators offering their services online and I think it is a good thing that one has the option to learn forex trading online but the problem is that traders who have failed in forex trading have now become forex teachers and try their luck to make fortunes in forex education business. The thing is since they themselves have failed in trading how can they teach you or educate you to become a successful trader. So that’s why it’s very important when you select someone to learn forex trading you should do proper research before making the selection. You should research about their history and read user comments and do not try someone who is new in the industry and does not have any history or background available online regarding as a forex educator. Try to find some very good forex educators which can help you excel in your trading and make some fortunes.

  • Nazeer

    Forex education is very complicated business and it’s not a good idea to start trading without proper education because your failure means you will lose money. For this reason I think it’s very important that you start trading only after proper education and learning because you can become successful trader when you know how to manage your money, how to manage your risks and how to control your emotions while trading and these things you can learn with some proper guidance and education. So it is always better to invest some money in your education before you start trading in your live account. Some forex brokers also organize weekly webinars for news traders. It’s also a good platform to start learning about forex trading. I will never recommend anyone to start trading in live account without any proper guidance and education.

  • Alex

    Nowadays almost every broker offers free education webinars for new traders so it’s good start for new traders to start trading after attending these webinars. I know some brokers who also offer live webinars during major economic events like NFP and FED interest rate meetings. These webinars are very helpful for traders to learn and understand behavior market. Forex education is very important and you learn new things everyday never stop learning because these way you will always update with new trading technologies and strategies.

  • Vladislav

    Forex education in these days play very important role in making successful traders within short time. It also helps you to learn how to handle risk in your account. I know so many people think that self-learning is better than forex education but I disagree with them because in my option forex education helps you to learn things fast and also helps you to develop your own trading strategies. It’s very important to have some mentor to follow when you start trading. That’s why I feel it’s good to get some education and then start self-trading. There are some very good websites these days which provide every kind of support from basics to advance. They almost cover everything that you ought to know before starting trading professionally. So find some best forex education website and start learning. I bet you will not regret on spending on forex education.

  • zack

    Forex education has also become as big a business as forex brokerage and nowadays you will find so many websites offering forex education and claiming to make you successful trader within few weeks. These websites and educators charge big money but funny thing is that all these educators enter in this business after failing in trading. So you ought to be very careful when you select someone for the sake of your forex education because how can someone who failed himself in trading can teach you trading. Do proper research before choosing someone to learn about forex.

  • Kalvin John

    Forex education is must if you want to become successful trader especially these days many forums and a lot of instructions are available on how to handle and manage group trading. This way you can easily learn how to control risks and place your profit targets and prevent losses. I am also part of one of this type of group and I have been really exceling my trading skills.