An essential piece of the forex success is in trading education, forex information and learning materials. Today internet offers large variety of both free and paid trading resources to help out a beginner. Out of all available information, what is useful and what is disorienting? Are there quality free resources or it is worth paying for a trading course right from the start? Can forex forum or blogs be of any help?
Where to Find Forex Information?
Let’s review the following resources in details:
1. Articles about forex trading
There are plenty of free articles on forex-related websites, which can give you the basic idea about forex and the currency market.
2. Online Tutorials for beginners and advanced traders
Many websites contain tutorials with in depth information about forex, covering wide range of trading topics – market analysis, charts and indicators, strategies, trading styles, psychological issues, money management, trading plan and much more.
Avoid the gurus and experts that claim to know the optimal forex secret for as little as couple of hundred dollars. Not all are scam, however most definitely are, trying to sell fake tracking records, useless automated robots and other worthless trading strategies.
3. Daily Market Analysis on Forex Brokers websites, in facebook groups, twitter, telegram and other educational resources
Most forex Brokers provide daily analysis on their websites, via email, via trading platform or even mobile text message. This forex information is useful to make a decision based on the next possible price direction.
4. Seminars and Webinars provided by Forex Brokers
There are plenty of online seminars held by brokers and other forex experts all over the internet. These webinars and workshops can be extremely helpful in gaining forex knowledge without paying a cent. Try to search for the seminars and crash courses both online and in the area you live.
5. Trading Blogs
Another way to learn about forex and getting to know other traders is via blogs and forums. Blogs have lots of useful up-to-date trading information and forums have significant resources for beginners, not to mention the great way to get a quick answer for a specific question from other forum members.
Unfortunately, not all forums are useful and not every member is a honest, successful trader. Stay away from users who have posted less than 50 posts, from users who tend to advertise some kind of garbage automated software in every other message and stay away from those who promise 100% profits!
6. Demo Accounts
It is not a surprise – practice makes perfect. Almost all forex brokers provide free demo practice accounts for beginners. You get virtual money and real market conditions to get to know forex and the selected trading platform.
To summarize, you have to do the homework! Learn to use the charts and indicators. Once you know the basics, you can use the free online resources such as technical and fundamental analysis to help you trade. With the internet today, you can simply put profitable forex trading strategy on your own, follow the trading plan and stay disciplined, and build a successful career as a professional forex trader.
Forex tutorials also cover the different types of orders that traders can use to enter and exit the market. The most common orders are market orders, limit orders, and stop orders. Market orders are used to buy or sell a currency pair at the current market price. Limit orders are used to buy or sell a currency pair at a specified price, while stop orders are used to limit losses by automatically closing a position when the market moves against the trader.
Risk management is an essential aspect of forex trading, and forex tutorials provide guidance on how to manage risk effectively. One of the most important risk management strategies is to use proper position sizing. Position sizing is the process of determining the appropriate size of a trade based on the trader’s risk tolerance and account size. Forex tutorials also cover other risk management strategies, such as stop-loss orders and diversification.
Technical analysis is another important aspect of forex trading that is covered in forex tutorials. Technical analysis involves analyzing price charts and identifying patterns that can be used to predict future price movements. Forex tutorials teach traders how to read and interpret price charts and use technical indicators to make trading decisions.
In addition to technical analysis, forex tutorials also cover fundamental analysis. Fundamental analysis involves analyzing economic and political events that can affect the value of currencies. Forex tutorials teach traders how to stay up to date with news and economic data releases and use this information to make informed trading decisions.
Finally, forex tutorials also cover the different trading strategies that traders can use to profit from the forex market. These strategies range from simple to complex and include day trading, swing trading, and position trading. Forex tutorials provide an overview of each strategy and help traders determine which one is best suited to their trading style and risk tolerance.
Beginner forex trading strategies
Forex trading strategies are usually differentiated by timeframe and market-specific variables. Strategies include trading market movements in minutes, or over several days. As a beginner you can test different forex strategies with a forex demo account and measure their relative success rate and suitability. You may also wish to try out and choose your preferred technical indicators for entry and exit points, and blend different aspects from several strategies. Some of the most common forex strategies include:
- Forex scalping is where traders hold multiple short-term trades and build profit based on small but frequent winning trades. This strategy may be best suited to traders who can commit a large proportion of their time to trading, and are more focused on technical analysis.
- Forex day trading is for traders who enter and exit at least one trade per day by predicting daily market movements, and are look to avoid overnight holding costs. This trading method may be best for traders who aren’t very comfortable with the extremely fast-paced trading methods in scalping, but still prefer shorter-term trading methods.
- Swing trading forex may be best suited to traders who prefer a balance between fundamental and technical analysis. Positions are open for several days, with the aim to buy at ‘swing lows’ and sell at ‘swing highs’, or vice versa if going short. Less time is spent analysing market trends in this method over some others, and there will be overnight holding costs and more chance of the market ‘gapping’.
- Position trading involves holding positions over long-term periods and ignoring short-term price fluctuations. Position trading may be best suited to traders who spend more time understanding market fundamentals, and less time undertaking technical analysis or executing trades.
Forex trading platform
When learning how to trade forex, many beginners struggle with the overload of information on trading platforms, and their lack of usability. When trading forex on our online trading platform, it’s worthwhile opening a demo account, which allows you to get accustomed to opening and closing trades, and practising your trading strategy. You can personalise our trading platform based on your preferences.
Forex trading for beginners – FAQ
How do I learn Forex trading step by step?
There are many approaches to how to start trading Forex sustainably. You can learn from the educational material that is widely accessible on the internet, and you can also learn from your own mistakes. The first step in learning how to trade is to learn how trading works, what are the concepts, trading terminology and how to use trading platforms. Afterwards, it’s important to learn about trading strategies, traders psychology and risk management.
How do I choose a service provider?
Service providers are typically selected based on taste and preferences. However, most people tend to pay a lot of attention to a company’s license. And rightfully so, well regulated brokers are safe for traders. When selecting a broker, it’s also essential to pick the one that offers the assets for trading that you are interested. In addition, trading fees and trading platforms are also critical.
How do I do research?
Researching includes learning about political and economic developments that can influence the markets. Research is done by gathering information. Research takes most time for position traders, swing traders and investors. Intraday traders spend more time on technical. Most brokers offer economic calendars for such purpose.
What software should I pick?
Your software of choice should be easy to understand, easy to use, and have all the necessary features that your trading style needs. In addition, make sure the platform offers the trading instruments that you want to trade. Good trading platforms are usually free and offer demo accounts.
What types of Forex trading software is there?
There are Forex trading platforms that are solely built for FX pairs. And there are multi-asset platforms that offer various asset classes, including Forex, stocks, indices, cryptos, commodities, etc. What’s more, most trading platforms come with mobile and web terminal versions as well.
Which currency pairs should I trade?
There are Major, Minor, and Exotic currency pairs. Majors are the most liquid and are the preferred choice by both professional and novice traders. Majors pairs have major world currencies, such as EUR, JPY, GBP, CHF, CAD, etc. coupled with USD. Major pairs have the best spreads and are the most attractive. Minor currencies are currency pairs of major world economies that do not include US Dollar in neither quote nor base currency. Exotic pairs have at least one currency from a developing country in a pair. Typically, exotic pairs have low liquidity, high spreads and most traders avoid trading them.
Why shouldn’t I use leverage?
Leverage is a very useful tool, especially in Forex, where exchange rates change very slowly and not too sharply. Leverage helps traders benefit from even small changes in currency valuation. Without leverage, CFD trading wouldn’t be possible. However, it could be extremely dangerous too if overused. Leverage is a double-edged sward that can increase income and similarly increase losses.
What is the best way to learn forex trading?
The best way to learn Forex trading is to dedicate your time and energy. Read, watch and learn everything that you can get your hands on. Unfortunately, there’s a lot of low quality information online. The more you learn, the better you’ll be at telling the high quality content from the low quality one. Learning how to trade takes time. You should avoid risking more capital than you can afford to lose while still learning. In fact, Demo trading is ideal for beginner traders.
What to learn in Forex trading from the very beginning?
From the very beginning, it’s important to learn how to use terminology and trading platforms. Learning terminology will increase the speed of your learning process. In addition, communication with other traders will become easier. Learning how to use a trading platforms, order types and trading indicators is also highly beneficial. After learning about technical details and develop trading strategies that fit your personality, it’s essential to work on your psychology.
How to learn to trade Forex, and how long does it take?
Learning how to trade profitably and consistently can be a different journey for every trader. As already mentioned, beginners start with the basics such as terms and trading platforms and advance to developing trading strategies and trader’s psychology. Learning period can take a couple of years. Learning any profession also takes time, and trading professionally is no any different. Developing a trading journal can speed up the process, as journals help traders learn from their own mistakes.
In conclusion, forex tutorials are important resources for beginners who want to learn how to trade currencies. They provide comprehensive and easy-to-understand information about the basics of forex trading, risk management, technical and fundamental analysis, and trading strategies. By taking the time to learn from forex tutorials, new traders can build a solid foundation of knowledge and increase their chances of success in the forex market.