If you are considering delving into the world of foreign currency trading then you may be uncertain about where to start.
There are a number of different ways in which you can learn to trade forex, so let’s have a look at some of these options.
Reading books is arguably the best place to start learning about forex because there is so much written on the subject.
Books will enable you to learn from some of the all-time greats in the finance world without relying on the opinions of arguably less experienced internet pundits.
YouTube videos enable you to see different trading strategies executed before your eyes, with detailed discussions about the thought processes behind them.
A video provides us with an effective audio-visual medium for learning, which you may find to be more effective depending on your personal learning style.
Articles & Online Tutorials
There are all manner of tutorials available on the Internet covering an array of different trading strategies, not to mention the fundamentals of investment as a whole.
Reading articles is a great way of learning and understanding much of the terminology used in the financial world, and is incredibly approachable for the newcomer or casual trader.
Online forums provide us with a way of interacting with other traders; both experienced and novice.
Interacting with others online enables you to learn from the mistakes that other people have made so that you can get a head start in your own training career.
It should be mentioned, however, that you must take everything you read with a pinch of salt because anyone can post their opinion to an online message board, regardless of their motivations or level of knowledge.
Generally speaking, paid investment forums tend to offer superior advice to free alternatives because there is more attention paid to the quality of the content.
Practice, Practice, Practice
You can spend hundreds or even thousands of hours reading investment books and watching YouTube videos but there really is no substitute for actually practising on a trading platform.
The vast majority of online forex brokers enable you to create a free practice account where you can use a virtual currency to execute trades based on the real-time conditions of the actual markets.
Virtual trading is a great way of learning the basics but you will be surprised by just how much your emotions come into play when you begin trading with real money.
Once you are ready to begin dabbling with a small amount of capital, that is when you will really begin learning the subtle nuances of forex trading.
Risk warning: Forward Rate Agreements, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you understand fully the risks involved and do not invest money you cannot afford to lose. Our group of companies through its subsidiaries is licensed by the Cyprus Securities & Exchange Commission (Easy Forex Trading Ltd- CySEC, License Number 079/07), which has been passported in the European Union through the MiFID Directive and in Australia by ASIC (Easy Markets Pty Ltd -AFS license No. 246566).