Getting a Solid Forex Trading Education

By: Harold Hsu

There is no lack of so-called Forex trading 'systems' that promise to turn you into a rich trader almost overnight. Many unsuspecting people unfortunately fall these marketing gimmicks without paying attention to what really matters - a good education on Forex trading.

A solid trading education will cover these basic aspects of trading:

1) Technical Analysis
2) Fundamental Analysis
3) Candlestick Analysis
4) Margin, Margin Calls and Leverage
5) Lot Sizing
6) Pip values and how to calculate profits and losses
7) Brokers
8) Spreads
9) Electronic trading platforms

And these are just the bare minimum. A good Forex education will walk you through various examples and even teach you how to trade with virtual money in the form of demo trading.

When first learning the ropes of Forex trading, you'll probably make careless mistakes such as entering a buy trade when your intention is to sell. This happens to almost all new traders! Such mistakes can be learnt without losing you any money through demo trading. Demo trading allows you to familiarize yourself with your trading platform, such as how to enter stop and limit orders.

Once you've familiarized yourself with your trading platform, it's a good idea to start developing your own trading 'system'. This is where most retail Forex traders stumble and fall. Developing your own profitable trading system is a tough thing to do.

To help you with this task, you should talk to more traders and also read more trading books. If you keep this up, you'll soon learn various trading strategies that can help you become consistently profitable. Mix and match the techniques you've learned until you settle on a comfortable trading system that suits your personality.

Foreign Exchange
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 

» More on Foreign Exchange
 



Share this article :
Click to see more related articles