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Forex Trading Education

Did you know that in moments, you can download a charting package, deposit money into a Forex trading account and start trading?  If you do so without any Forex trading education, you can be guaranteed that you will blow out your account and never succeed at trading. With the lure of easy money that all those trading emails say we can make, it is easy to get pulled into the mentality that trading is something anybody can do.  Actually, people sell e-books for cheap that promise you the Holy Grail but for the most part, they are written by people with a rudimentary grasp of trading.  What you need to succeed, besides patience, is Forex trading education by experts.  While it doesn’t guarantee success, by taking Forex trading courses online that are taught by professionals in the field, you will get a leg up on the masses.

Forex Trading Courses That Work. . .

There is some basic information that should be covered in courses that offer Forex trading education but I am going to give you those for free.  These topics are:

  • What is a currency pair
  • What is a pip
  • What is spread
  • What is margin trading
  • What is money management

It doesn’t matter what course you take, even the Forex trading classes by experts should cover these basic variables.

  1. What is a currency pair?  In Forex, you are essentially trading one currency pair against another so you will always see pairings such as EURUSD, GBPUSD, EURJPY.  The first currency listed is called the quote currency and the second currency is called the base.  For example, GBPUSD/1.50 means that 1 British Pound is equal to 1 USD.
  2. What is a pip?  While other markets trade in points or ticks, Forex trades in pips which is .0001 or 1/100 of 1%.  While many pairs trade with 2 numbers after the decimal, most trade with 4.  Each increase or decrease of 1 pip such as 1.5000 – 1.5001 determines your current profit or loss on the trade.  For some people, 1 pip could mean $1.  For others with big trading accounts, it could be thousands of dollars.
  3. What is spread?  You have heard that Forex trading has zero commissions.  That is true however you pay what is known as spread for the ability to enter the trade.  It is the difference between the bid and the ask price.  Spreads can fluctuate depending on the currency pair, time of day and volatility in the markets.
  4. What is margin trading?  This is where you can control a lot of money with only a small amount put up as a deposit.  In North America, the maximum amount of leverage is 50:1.  This means for each $1 you have in your trading account, you can trade $50.  With $2000 in your account available for margin, you could trade $100000 worth of currency.
  5. What is money management?  Quite simply, this has to do with how you treat your trading account.  Most of those who offer Forex trading education say never to risk more than 2% of your account balance.  This way you can absorb a few losses in a row without destroying your trading account.  This one topic is something that can save your trading career or at the very least, slow the drain on your trading account.
  6. What are the best forex indicators you should be using?  Forex indicators are sometimes though to be the holy grail of trading but the reality is the use of indicators are about putting the odds in your favor, not trading perfection.  However, the best forex indicators can be predictive and while not perfect certainly give you a better road map of what to expect next from your trades.

What should you look for when looking investigating Forex trading courses online?  The good thing is you can easily search for reviews on the particular company or expert you are looking to learn from.  On the other side of that though is that the reviews can be meaningless.  Not everybody, even with Forex trading education by experts, will succeed at trading.  The attrition rate is exceptional and even with the best system and rules, most will still fail at the trading game.

Finding The Best Forex Trading Courses

Are all Forex trading education outfits equal?  They are each unique but the answers to these few questions should help you narrow down your choices.

  • Is the course taught by professionals?
  • What is their track record?
  • Are the fees reasonable?
  • Do they appear to be slick marketers?
  • Is there a guarantee?
  • Do they understand economic calendars?  No question news moves markets massively.  Not having a forex calendar based strategy can lead to ruin.
  • Can you take the course over again?
  • Forex trading demos are also pivotal.  We’ve never met anyone who has mastered trading out of a book, or downloading an indicator.  It’s critical that live in the market forex trading demos are part of your education.

Is the Forex trading education from experts?  You want to make sure that whoever is teaching the course, they are a professional and have experience trading in the markets.  The experience in the markets should be a positive one and they should make a living from trading.  One great thing about Premier Trader University is that they have success every single day in the markets so you know they have “been there, done that”.

What is their track record?   I would like to see the company offering Forex trading education online has been in business for a few years.  This way they have built up some sort of reputation and even though I suggest you take reviews with a grain of salt.  Their financial track record may be important but remember that your success can and will be different.

Are the fees reasonable?   Judging that can be tough!  How do you put a price on Forex trading education without knowing what you will come out of it with?  How often is the training?  Is there any software included?  Is there recordings you can keep?  Do the instructors take their time with teaching?  How do they compare to other courses?  Does a high ticket price always mean quality?  Of course not and you should make sure that any fee fits within your budget.  No sense in paying for a course and not having money left to trade with.

Are they slick marketers?   Stay away from anybody who tries to sell you with promises of easy money.  While flashy websites can be a giveaway, use your gut feeling.  If it seems too good to be true, you know it is.

Is there a guarantee?   Most places that teach Forex trading education will never offer a performance guarantee.  It is impossible to say how each trader will do.  The guarantee should cover anything to do with the lessons and ensure you get exactly what you paid for.

Can you repeat the course?   This is important because repetition is the mother of all skill.  There should be no charge or at best a nominal fee for taking repeats of the course.  Everybody learns at different rates and some may need multiple takes of the class. In summary, there are many Forex trading courses online but very few of them are worth your time.  Take the checklist I provided above and go through each company you are investigating.  Think of your Forex trading education as an investment in you and your future.  Is the training current?  Forex arbitrage is a good example of this.  There are sometimes short periods of opportunity or inefficiencies in the markets that create forex abitrage opportunities.  However, strategies and training that focus on these alone tend to be dated quickly since these arbitrage opportunities tend to disappear.  Go for a strategy that will work in the long-term as well.