The Minimum Requisite Education For Successful Forex Trading

You can call it by any of these names—Foreign exchange, forex or just FX. They all describe the mode of trading of the world’s major currencies. Today, the forex market is considered the largest market in the world with the volume of trading that amounts to around USD 1.5 trillion every day. Add the volume of activities of all the domestic trading exchanges and even then the forex transaction on an average day is more than this combined value. The forex trading value is also one hundred times greater than the daily trading on the NYSE (New York Stock Exchange). The activities in this market are mostly speculative, with a small portion representing governments’ and banks’ fundamental currency conversion needs.

The forex market is fundamentally different in nature having an operation on the “interbank” market, instead of operating through a central exchange like those of the domestic stock markets. In nature forex market resembles an OTC or over the counter market, where trading takes place directly between the two parties whether over the telephone or on electronic networks all over the world. The main centers for trading are Sydney, Tokyo, London, Frankfurt and New York. Because of this worldwide network of trading centres, the forex market remains operative 24-hour all through the week.

In the earlier days, the forex trading was the monopoly of financial giants and a few selective big time traders. But the globalization and internet has thrown open the market to common traders with a sharp intuition for speculative trading. In addition to a sharp intuition and predicting abilities, a first time trader needs some basi training in the major terms of forex trading.

The basic forex terms:

Spot:

The forex market is described as the spot market as the trades are settled instantly, “on the spot”. In real life it amounts to two banking days.

Spread

You sell currencies in this market through a ‘bid’, and you buy them through ‘ask’. The spread is the difference between the price at which you sold the currency and the price you have bought them. Under normal market condition you will find a spread on majors amounting to 3 pips.

Pips

As said earlier you will often come across such scenario as a 3-pip spread on trading the majors. It is the basic unit for measuring a cross price quote changes. Consider this instance, where EURUSD is quoted at a bid price of 0.9875 and an ask price of 0.9878. The difference is USD 0.0003, which is equal to 3 “pips”.

Margin Trading

Foreign exchange is normally traded on margin which is considerably higher than any other stock exchanges. In forex market you will enjoy a margin up to 100 times.

Base Currency and Variable Currency

In forex market you are always trading on a combination of two currencies. For example, you will buy US dollars and sell Euro. It means you have to speculate on the assumption of comparative strength and weaknesses of the any two currencies.

Forex market is a perfect for those who do not dare to take risks. But you will be in a position of taking risks when you adequately educated in this field and your basic minimum education in this field should start with a clear perception about the above described forex trading terms.



Source by Berg Davidsen

The Idiot’s Guide To The Best Forex Trading Education Secrets

Individual traders can earn substantial profits on the Forex market. Through research, effort and following good advice, someone can make a good return on their investment. When learning the basics of Forex trading, an investor must be able to draw on the experiences of other traders. This article offers a number of useful tips and guidelines for Forex trading education.

Track financial news daily to keep tabs on the currencies you are trading. Speculation is the name of the game, and the news media has a lot to do with that. Try setting up a system that will send you a text when something happens in the markets you’re involved in.

If you’re new to Forex trading, one thing you want to keep in mind is to avoid trading on what’s called a “thin market.” Thin markets are those with little in the way of public interest.

Sometimes changing your stop loss point before it is triggered can actually lose your money than if you hadn’t touched it. Just stick to the plan you made in the beginning to do better.

When people first start in the Forex markets, they often let their greed blind them, resulting in losses. Other emotions to control include panic and fear. All your trades should be made with your head and not your heart.

Research the broker you are going to use so you can protect your investment. Pick a broker that has a good track record and has been at it for five years.

Never let emotion rule your strategy when you fail or succeed in a trade. Vengeance and greed are terrible allies in Forex. You need to keep a cool head when you are trading with Forex, you can lose a lot of money if you make rash decisions.

Automated Forex programs and eBooks detailing fool-proof systems are not worth your money. Nearly all products like these give you an untested and unproven program. Ultimately, the only people involved in these transactions who end up any richer are the sellers. Instead of wasting money on possibly dubious products, spend that initial amount of money on a Forex trader who can teach you what you need to know.

As mentioned in the beginning of this article, information and advice from experienced traders is important for new and less experienced traders. The great advice in this article can benefit anyone who wants to learn more about Forex trading. A trader who is willing to put in the effort in Forex trading education and listen to advice can reap huge rewards.



Source by Greg Bukkosi

Forex Trading Education: Things You Should Know About Forex Trading

How difficult is it to make money trading the Forex market? How much time does it take to actually be able to make a living trading the Forex market? These and other important aspects of trading are to be discussed in this article.

Trading the Forex market has many benefits over other financial markets, among the most important are: superior liquidity, 24hrs market, better execution, and others. Traders and investor see the Forex market as a new speculation or diversifying opportunity because of these benefits. Does this mean that it is easy to make money trading the Forex Market? Not at all.

Forex brokers agree that 90% of traders end up losing money, 5% of traders end up at break even and only 5% of them achieve consistent profitable results. With these statistics shown, I don't consider trading to be an easy task. But, is it harder to master any other endeavor? I don't think so, consider musicians, writers, or even other businesses, the success rates are about the same, there are a whole bunch of them who never got to the top.

Now that we know it is not easy to achieve consistent profitable results, a must question would be, Why is it that some traders succeed while others fail to trade successfully in the Forex market? There is no hard answer to this question, or a recipe to follow to achieve consistent profitable results. What we do know is that traders that reach the top think different. That's right, they don't follow the crowd, they are an independent part of the crowd.

A few things that separate the top traders from the rest are:

Education: They are very well educated in the matter; they have chosen to learn every single and important aspect of trading. The best traders know that every trade is a learning experience. They approach the Forex market with humility, otherwise the market will prove them wrong.

Forex trading system: Top traders have a Forex trading system. They have the discipline to follow it rigorously, because they know that only the trades that are signaled by their system have a greater rate of success.

Price behavior: They have incorporated price behavior into their trading systems. They know price action has the last word.

Money management: Avoiding the risk of ruin is a primary subject to the best traders. After all, you cannot succeed without funds in your trading account.

Trading psychology: They are aware of every psychological issue that affects the decisions made by traders. They have accepted the fact that every individual trade has two probable results, not just the winning side.

These are, among others, the most important factors that influence the success rate of Forex traders.

We know now that it is not easy to make money trading the Forex market, but it is possible. We also discussed the most important factors that influence the rate of success of Forex traders. But, how much time does it take to have consistent profitable results? It is different from trader to trader. For some, it could take a life time, and still don't get the desired results, for some others, a few years are enough to get consistent profitable results. The answer to this question may vary, but what I want to make clear here is that trading successfully is a process, it's not something you can do in a short period of time.

Trading successfully is no easy task; It is a process and could take years to achieve the desired results. There are a few things though every trader should take in consideration that could accelerate the process: having a trading system, using money management, education, being aware of psychological issues, discipline to follow your trading system and your trading plan, and others.

Forex Education – Forex Software Or a Trading Course, Which is the Best Option For You?

If you want some help with your Forex education the two most popular ways traders seek help in making profits is – either to buy a Forex robot or use a Forex course but which method is the best for you, lets find out.

Forex robots are popular because they offer you the potential to make big gains with, low risk and no effort and there also very cheap with the majority costing just a hundred dollars or so the problem is though – they don't work.

Anyone who thinks that by spending a hundred dollars or so they can get a huge income for life is naive. If these systems worked, no one would work for a living and everyone would be a trader but the reality is the only person who makes a regular income, is the person selling the system.

So can a Forex Course help you succeed?

The answer is yes because they are teaching you the skills you need to win in a market where 95% of all traders lose money. While of course you have to do some study and work, the rewards for your effort can be life changing.

The best courses come from traders who give you proven strategies to use and all the logic behind them so you can trade with confidence and discipline. Furthermore, they will show the strategy and how effective it is by trading it live in daily updates so you can see how much profit it makes.

All the best courses come with money back guarantees, so if you don't like the strategy or feel FX trading is not for you, you get your money back which allows you to learn Forex with no risk.

If you are serious about making money, forget about get rich software and make an effort and learn the skills you need to win and to do this quickly and risk free, the best Forex courses offer you a great route to currency trading success.

Forex Education – 5 Common Trading Mistakes You Must Avoid Or You Will Lose!

Enclosed in this article you will find some common trading mistakes which you must make a part of your essential Forex education or you will lose and lose quickly.

Let’s start with how many traders lose money and its 95% and that’s a big majority! This leads us to our first point which most trades ignore and try and get rich quick.

1. Forex Trading is Easy

Forex trading is not easy and you wouldn’t expect it to be with the rewards on offer. If you want to win, you need to learn skills and this leads me to the next fact about Forex trading and its:

2. Forex Robots and Expert Advisors will Make You Rich

All the cheap, get rich quick Forex software you see sold online will lose you money. These systems offer you financial freedom for paying out a couple of hundred of dollars or less but if they worked 95% of traders wouldn’t lose. They are sold so cheaply because they simply don’t work.

3. Effort or Intelligence Leads to Success

This is a common mistake to make, because you rewarded for these traits in society but you don’t get rewarded for them in Forex trading. You are only rewarded for the accuracy of your trading signal, it can take you 5 hours or 5 minutes it doesn’t matter how long it takes, profits are all that count. You don’t need to work hard or be smart, just get the right education and mindset and trading should take you just 30 minutes a day or less.

4. Forex Price Movement can be Predicted

No they can’t and if they could there would be no market as we would all know the price ahead of time, markets move on uncertainty not certainty. If try and predict you are hoping or guessing and that won’t make you money, so simply trade the reality of price change and you will have the odds on your side.

5. Not Trading with Discipline

This is something the vast majority of traders do and it leads to a wipeout of equity. If you cannot trade your system with discipline you simply don’t have one.

You are going to lose for long periods, all traders do and you must keep your losses small in these periods and take them cheerfully. If you get frustrated and angry like most traders, you will start to run losses and that ends in disaster you need to stay on course until you hit a home run.

How to Win at Forex Trading

The above are all common mistakes and you need to avoid them and if you do and get a solid Forex education, you could soon be making some great profits, in 30 minutes a day or less.

Forex Education For Beginners – Best Practices Explained

Forex has a bad reputation among some traders as a kind of online gambling scheme where the house (the brokers) makes money, while you lose just about everything that you risk. No doubt, this has been the case for many traders, but forex itself isn't the cause of this low success rate – it is a lack of understanding and knowledge that has doomed so many traders to failure. As with any business, trading currencies requires knowledge and patience to deliver its returns. To acquire the knowledge, and gain experience, you must study hard, but given how much useless information there is online on forex trading, the question of who to ask and where to seek acquires a critical nature.

Ultimately, the best forex education for beginners is practicing in the heat of the action without risking much. Since forex is about probabilities, no textbook on golden rules can provide us the foolproof blueprint for a constantly successful trading strategy. Most successful and experienced traders admit that knowing what not to do is just as important, if not more important than knowing what to do in the world of forex. And on the list of lessons on forbidden practices, emotional trading is the first item.

To avoid the dangers of trading too much, and to prevent your feelings from making your trading choices, you must get the best forex education. You can't open a door without a key, and the key to riches in forex is study. There have been traders who failed in spite of a good education, but there will never be anyone who succeeds without learning and studies. So make sure that you arm yourself with the best knowledge available on currency trading.

Forex Education – Bollinger Bands Can Give You a Huge Trading Edge Here's Why

One of the critical pieces of forex education for any Forex trader is to understand the concept of standard deviation of price and how to use volatility to their advantage.

If you understand the concept you can easily apply it with Bollinger bands which are an essential tool for all forex traders.

Let's look at why Bollinger Bands are so useful and profitable, when incorporated in your Forex Strategy.

If you don't know what standard deviation is simply check our article on the concept – right, let's take a look at Bollinger bands.

Bollinger Bands Defined

Bollinger bands are simply volatility bands drawn either side of a moving average.

You calculate Bollinger bands using the standard deviation of price over the same period as moving averages the mean price, then the volatility bands are plotted above and below the moving average.

Moving averages are used to identify the underlying trend of currencies and Bollinger bands take this one step further by:

Combining the moving average of the currency with the volatility of the individual market (or the standard deviation) – this then creates a trading envelope – with a middle mean price (moving average and 2 x bands (expanding or contracting) either side that reflect volatility or standard deviation.

As prices move away from the longer-term average, the standard deviation rises – and thus the bands will fluctuate in varying amounts, away from the average.

Why they work

In any market, the value of a currency traded tends to rise slowly over the longer term.

Prices can and do spike quickly in the short term, but will normally return to the longer term moving average – which represents fair value.

The standard deviation of the outer bands (how far they are from the mean) shows how far prices are from longer-term value.

Most price spikes are caused by trader psychology with greed and fear to the fore and this can be graphically seen with Bollinger bands.

So how should you use Bollinger bands?

There are 3 main ways to use them.

1. Spotting price spikes

When the bands are a long way from the mean you can use Bollinger bands as profit taking signal on existing trades or use them to spot contrary trades.

2. Enter exisiting trends

If you have a good trend in the forex markets then you can use dips to the middle band to buy at fair value.

3. Entering new trends

When prices are trading in tight range and start to breakout with a change in volatility a great new trend could be emerging.

Bollinger bands can certainly give you a new dimension to your forex trading strategy and any currency trading system can benefit from the extra insight that they can give you.

A word of warning

Like all technical indicators you should not use Bollinger bands in isolation to enter trades, however combined with timing indicators such as, the stochastic or RSI, then you have a powerful combination for greater FX profits.

With regard to forex education, knowing what standard deviation is and how to apply the concept through Bollinger Bands, will give you a huge trading edge, so make sure you use them.

Forex Education – Prerequisite for Beginners Before Trading

Forex education is always a prerequisite for anyone who is interested to start Forex Trading. Forex Trading may look simple on its skin, but when you look deep into its body it is often a complicated one. If you want to succeed as a Good Professional, then it is wise to have some Basic knowledge on Forex Trading. basically requires 3 attributes in you. These are Courage, Analytical Mind and Knowledge. Anyone who wants to do and in case does not posses these attributes by default, he can gain these attributes during his training and education. Before stepping in the real forex world, it is imperative to go through the forex demo, which will help the individuals in understanding the mechanism of trading at the Forex Market.

Online forex courses:

Many Forex Trading Courses are available online. But before enrolling yourself for a Course, it is necessary to know the Overview of the Course. A good Course is the one which teaches you right from the Definition, Introduction and Working of. The course should also cover basic concepts like Market Trends, Money Management, Forex Indicators, and Data Analysis etc. From Online Courses you will be able to learn how to minimize risks and develop a good trading strategy. Online Courses provides you Flexibility over time. Hence many Forex Trading Beginners opt for these online courses. In order to get an insight into, you can read Books by Specialists. They will act as a guide in your Voyage of Forex Trading. There are plenty of such books available which are written by Forex Trading Specialists.

Demo account:

Once you have required knowledge to put your feet on, it is not necessary for you to directly enter into the Forex Trading World at once. You can always test your knowledge and expertise in through forex demo. This Demo account will enable you to practice Forex Trading Virtually. You need to invest by using your Virtual Money. Demo Account brings you a step closer to the Environment. By using a Demo account you can get familiar with the Trading platform. Next you can learn how to execute a trade, have a feel of profit and loss scenarios on a real time basis.

You can apply all the knowledge you have acquired during forex education and see if the trading strategy proves fruitful. The Demo account also has its own set of disadvantages. But these disadvantages are over come by the fact that the Demo Account provides you basic practical knowledge in Forex Trading which is valuable for any beginner. Hence, all the beginners who look out for trading at the forex exchange must opt ​​for training and education so that they are well aware of the fundamentals and mechanisms of trading.

Forex Education – The Way of the Turtle

Many years ago, I read the story of the turtles in the book "Market Wizards". I was fascinated to read how the legendary trader Richard Dennis, trained a group of novice traders in just 14 days – and how these novices later became trading legends themselves.

Now we have a book written by one of the turtles themselves. "The Way of the Turtle" by Curtis M. Faith. This turtle and author made $ 30 million for Dennis – and now shares his insight of the turtle experiment and its achievements

The Bet

In 1983, Richard Dennis had a bet with his long-time friend William Eckhardt. They had a friendly dispute on whether traders were born, or could be taught to be successful. Dennis thought they could be taught, but Eckhardt thought they couldn't.

The turtle experiment took place – and Dennis won. The turtles achieved a collective compound rate of return of over 80%. This group of 23 traders had never traded before, yet were taught to trade a system in just 14 days.

"Way of the Turtle" reveals the reasons for their success, and covers such areas as:

. The system rules and methodology

. Why, even though they used the same method, some Turtles were more successful than the others were.

. How to expand the rules that the Turtles used – in order to find core strategies that work for any tradable market.

. How to apply the Turtle methods to your own trading strategy.

. Ways to diversify your trading risk

The "Way of the Turtle is a good book – being easy, and fun to read. The book throws up one key fact that all forex traders should note in their forex education: Simple trading systems can provide a trading edge, but it's psychologically difficult for most traders to follow these systems and take advantage of the edge the system can provide. This is clearly shown by the fact the Turtle's results varied (despite the fact they all were taught the same methodology).

There's also a discussion on the difficulty of executing a system that has a few big winning trades, in order to achieve an overall positive return on investment.

If you learn one key fact from the book, it's that learning a successful trading system is not enough. You need the mental discipline to execute the system correctly – in order to maximize your returns.

I've always found the experiment an inspiration, and I'm sure other traders who read this book will come away thinking, "they did it – so it's possible!"

It's possible to become a successful trader if you gain the right knowledge – but you also need courage and discipline, in order to execute the knowledge correctly.

You may not be as successful as the turtles were – but the book will point you in the right direction, to achieving currency-trading success. The book does this by highlighting some key areas you need to apply in your own forex trading strategy, in order to become a successful currency trader.

"Way of the Turtle" is well worth buying – and you should consider it to be an essential read, and part of your forex education.