Newbie at Forex Trading ? - Read on to Know More

By: Rajinderpal Singh

Do you have a passion for learning how to trade currency on the foreign exchange market? If so, there is no better way to learn than by taking advantage of the wealth of resources available to you online.

Forex is a hot subject, and there are so many web sites about it, it can be hard to know which sites are relevant and trustworthy versus which ones to avoid. My goal here is to help you cut through the clutter, and find the resources you need to learn Forex trading online - the easy way!

Step One: Know Your Terms

The hardest part of learning any system is usually in the memorization of vocabulary, and the concepts represented by the 'jargon'.

Forex is certainly no exception to this rule.

More often than not, you'll come across a word you are unfamiliar with - and you'll look it up - only to find the definition contains 2 or 3 other concepts you've never heard of before.

So, before you dive in too deeply, make sure you have a good reference handy. One very helpful site is 'InvestoPedia' ().

Step Two: Open An Online 'Demo' Trading Account

You can test your basic knowledge - without losing your shirt - by opening a demo Forex account with an online broker.

Demos trades allow you to spot the weaknesses in your skills and knowledge, while also getting you comfortable with the fast-paced speed of the market and quick-thinking required to move on opportunities.

Step Three: Consider Investing In Your Education

There are more than a few top-notch Forex training courses available online. Some of these courses are run by online brokerages and are interactive in nature. Other courses may consists of ebooks,how-to videos,forum and personal mentoring put together by experienced investors-turned-teachers.

Getting a Solid Forex Trading Education

There are a lot of Forex trading courses online that promise to teach you everything you need to know to jump into the market with confidence. If you are new to Forex, though, how can you tell which ones will truly provide you with the solid Forex trading education you need?

A respectable course should include training material on all the fundamental aspects and concepts for beginners, including:

*Exchange rates
*Fixed rates versus floating rates
*Currency pairs
*Bid Prices versus Ask Prices
*Spreads
*Lot Sizes
*Margins, Margin Calls and Leverage
*Pips Values and their role in calculating profit and loss
*How to evaluate leading economic indicators
*How to read Forex signals and charts

This is just the bare minimum. A really good course should also walk you through a variety of trading examples, and show you how to perform 'test trades' yourself using a demo account with a reputable broker.

Another thing you can do to help speed your learning process is to immerse yourself in the literature of the market. There are scores of books and magazines available on the subject both online and off. You might want to have a look at the free, online magazine called Currency Trader ().

Finally, consider enhancing your knowledge of other financial marketplaces. You'll find some concepts and terms repeated when reading about how to trade on the Stock Market, or how things like interest rates fluctuate for bonds, bills and other instruments.

This is especially useful if you feel more comfortable in one area of financial knowledge than other because you'll be able to see some related concepts from Forex in a context with which you are already familiar.

Make sure you choose a course that suits your needs, learning style and budget. Avoid any courses that sound too good to be true in terms of the financial gains they promise you. Forex takes time and you won't get rich overnight on currency trading. It requires patience,practice and most of all dedication.

Above all, remember to have fun!

Foreign Exchange
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