Should You Take a Forex Trading Course?
Experienced forex investors tend to generate relatively consistent profits – for example, studies have shown that most years the average professional forex trader creates about a 10% return on their capital. However, the situation is very different for those who are just starting to get into the forex market. Many new traders end up with large losses because they try to see what works without getting expert advice. This even applies to investors who have been successful in equity markets – the dynamics of the forex market are very different to other markets, since speculation plays a much larger role.
Rather than just jumping into the forex market, it is much wiser for forex traders to take a trading course. In general, there are two main types of courses available. Online courses are similar to other distance learning courses, with presentations, eBooks and trading simulations delivered over the Internet. This type of course is well suited for beginners, and typically costs a few hundred dollars. On the other hand, individual training is a better choice for traders who already have basic forex experience. This can cost up to $10,000, but the student typically is mentored by an experienced and successful trader, who teaches them by trading in a live environment.
When selecting a forex training course – online or individual – it is important to choose one that delivers value. A quick search for courses on Google will turn up literally hundreds of thousands of results, many of which are or very poor quality. Those that promise huge returns in a very short period of time are the worst offenders – these are almost inevitably scams. The best way of choosing a good course is by its reputation, and there is no better way of judging this than asking a number of other traders for their opinions.
Another thing to check is whether or not a trading course is recognized. Regulatory bodies such as the SEC approve some courses, while other courses are certified by industry bodies such as the National Futures Association. In the United States, other reputable certification organizations include the Chicago Board of Trade and the Financial Industry Regulatory Authority. However, courses outside of the United States may be certified by the financial regulatory body of the country where the course is offered or by other regional financial associations.
If a trader does not have the time or money to commit to a trading course, then there are other ways to learn, including books on forex trading and articles on the web. This approach is best for those who have proven skills in self-teaching. Doing this can be challenging, since locating good information and filtering out bad advice takes some time. However, for an investor with a limited budget, it is an option to consider and is certainly far preferable to trading without training.
A Guest Post by FXTM
In this day and age. The best teacher comes with transparency. Alot of online recording software that tracks your trade like myfxbook is a classic example. Less common is profit ly. Timothy Sykes uses it.
If your mentor charges more than $1k and has a trading capital of less than $10k shouldn’t you be asking why? Why no track record. Why no past history? Why I don’t understand? Why are you not trading for a living?
Ask. Ask ask. Don’t be blinded by complicated instructions. Simple is great. Simple slice issues easily.