If you are looking to learn forex trading and don’t know where to start, this is the guide that would help you get started. Forex trading is popular among people for making good money. Whether you want to get into forex trading full-time or start it as a side hustle this article will show you the ropes.
Let’s dive in.
Table of Contents
Why learn forex trading?
Forex trading is known for its amazing turnovers. If done right, it can be a flexible solution to your financial problems. The reason to learn forex trading varies depending on the person in question. Furthermore, there are many reasons to choose this subject, and below are some of the most common reasons that might make you too want to learn forex trading.
The most obvious and common reason to learn forex trading is to earn some extra income. It is always a good thing to have some additional income, and forex trades can help you with that.
However, keep in mind that this is not something you can switch back and forth to. To earn a respectable amount, you should really put in time and dedication.
Trade to your own schedule
The marketplace where forex trades happen is open 24 hours, five days a week. When compared with the stock market, which only operates six hours per day, forex markets are much more flexible.
So you, as a trader, can trade anytime you want, and this flexibility is great for people with full-time jobs and who want to do forex trading on the side.
Low costs when doing transactions
Forex trading is among the cheapest types of investments available. The transaction costs themselves are low and sometimes are non-existent due to the small number of middlemen involved.
In addition, the leverage when it comes to forex trading is much higher than in other types of investments.
Better tools at your disposal
Many forex trading platforms offer a wide range of tools to aid the trader in making more successful trades. With this traders can easily view and analyze data to identify patterns and trends.
Trade at your convenience
Doing trades in the forex market is not something that requires lots of resources. All you need is a smartphone or a laptop with a good internet connection, and you are good to go. This allows you to trade even on the go. In addition, combine that with the 24 x 5 open hours, and what you have is the most flexible way to earn some extra income.
Signs that you should learn forex trading
Understanding if you got what it takes to do well in the forex market is the first step to take. So, let’s take a look at the most common signs that say you will make a good forex trader.
You are analytical
Having an analytical mind is a great asset to you if you want to learn forex trading. This will allow you to get a better grasp of the percentages, calculations and ratios of leverage and risk and rewards.
You are disciplined
Discipline is also a quality any good forex trader should possess. If you want to become a successful forex trader, you must have strong discipline with you at all times. This will help you make decisions against your emotions.
You are dedicated
Dedication is something that you must have if you want to succeed at anything in life. This also applies to forex trading as well. The road to becoming a successful forex trader is a long and hard one. Thus dedication will be your main guide on this road as well as when starting to learn forex trading.
You are strategy-based
Luck is the last thing that you should count on in forex trading. While it’s good to have great intuition and luck by your side, strategy is what you should depend on the most. Trading according to a good strategy will always give you better and more consistent results than any other way.
You are not impulsive.
Trading on your impulses falls more on the line with gambling than trading. So if you are known for making impulsive decisions you need to work on that before getting into any trading. Because to become a good trader you need to be able to take calculated risks based on data and not just act on what you feel in the moment.
You are not overly emotional.
Having good control over their emotions is a quality that can be seen in every successful trader. This allows you to keep trading and follow a strategy even if you suffer some losses along the way.
However, this is one of the hardest aspects to master since it goes against human nature. If you are someone with such a trait you will have a better chance at succeeding in forex trading.
You are risk-savvy
A forex market is a place that carries a large amount of volatility. If you are not looking to trade with some risks at hand, you might not be able to make those big bucks forex trading is famous for.
This is indeed a double-edged sword, and losses are a possibility, same as rewards as forex trading is all about taking calculated risks and risk management.
How to learn forex trading?
The way that you follow how to learn forex trading is up to you. Everyone has their own criteria, and the time and money at their disposal to spend on learning forex trading can differ from one to another. Let’s see some of the most common learning methods available right now.
The easiest way to learn about forex trading is by self-education. By following this method, you have to go all the way all by yourself. The Internet, books, and other similar knowledge bases are your biggest allies here, and you are 100% responsible for your own success.
- Cost-effective way to learn.
- The pace that you follow is your own, and it makes learning much easier.
- You can do self-education whenever and wherever you want.
- Much less stress to learn.
- Easily accessible top-tier knowledge bases.
- The content you learn is unstructured and sometimes will confuse you.
- There is no guarantee that your knowledge sources are accurate.
- Self-education will take much more of your time.
- The chances of you missing important information are high.
Videos are a great source of information that cover almost all the subjects in the world. Furthermore, there are lots of videos and video courses on the internet that teaches you all about forex trading. Everything from the basics of forex to trade recommendations are here.
- Having visual aid is a great way to remember things that you learn.
- Lots of video content are available for free and will help you learn without investing any money.
- These also fall in line with self-education and have all the benefits of it.
- Videos are pre-recorded, and you won’t have any input and the professionalism of the creator.
- Videos might contain outdated information.
- Following trading signals and recommendations might lead to losses with nothing for you to analyze and gain from that loss.
Forex trading training courses
Following training courses that are made to help you learn forex trading is also a great path to follow. These are a great way for beginners to learn what it is in the trading world and get the basics to learn the ropes.
- Access to organized information by trading experts and established firms
- Many free options are available, and if you want, there are also paid and more advanced ones you can try.
- Much easy to learn things with the input of the experts.
- Training courses are more focused on explaining issues than forex trading.
- Most of the time, the free or cheaper courses will try to sell an investment plan rather than teaching forex trading.
- Courses held by famous traders can be quite expensive.
Forex trading schools
Forex trading schools are the most effective and reliable way to learn forex trading. They often follow a well-established curriculum and will help you to understand all you need.
Furthermore, passing a trading school will get you a State Professional Development Certificate, proving you know what you are doing.
- More effective structured lessons and teaching methods are here
- The input of the teachers will help you to grasp things better
- In the end, you get a certificate to prove your knowledge, unlike any other method.
- There are not the cheapest methods and sometimes can cost a fortune
- Limited availability of forex trading schools
Forex trading books
Forex trading Books are also a great way to get knowledge on the forex trading scene. A countless number of books from different authors are available for purchase, and these contain valuable insights.
- These are written by the top experts in the fields and are guaranteed to have valuable information
- E-book versions of the forex trade books are available if you are unable to get your hands on a physical copy.
- The information on books can quickly get outdated with no way to update them.
- Getting your hands on every piece of literature is impossible; thus, the accessible knowledge is limited.
Can you learn forex trading all by yourself?
In simple terms, the answer is yes.
Learning about forex trading all by yourself is an easy task now with the availability of all the knowledge sources. You can also get the help of other traders in the field for some extra opinions to speed up the learning process.
The hardest part is choosing what type of path to follow when you try to learn forex trading. Understanding the basics of the subject will help you to understand what it takes to make a profit out of forex trading.
Since this is a field often involved with risk, you will not be able to keep up a perfect trade rate at all times. If you follow a solid forex training regime, you are more likely to understand that.
However, the path that we suggest you take when learning forex trading is self-education. It’s free, and you will have access to a multitude of knowledge sources to help you in your way. One of the best platforms with a good self-help section is Icon FX.
Icon FX is a well-established platform with a large knowledge section that is aimed at all types of traders. You will have a much easier time understanding what you need to know, trading strategies and signals here. You also have the freedom to create a demo account and make trades with what you have learned without any risk of losing capital.
Tips for learning to trade by yourself
If you feel like you got what it takes to succeed in the forex trading market, we got some tips that can help you get some confidence.
- Don’t follow trends without any research
Following new trade trends cluelessly can affect your trades negatively. So, make sure to do your research beforehand
- Always be humble
Be a humble person in the trading fields as well as in the real world. Take other traders’ opinions and be humble enough to validate your beliefs.
- Prioritize risk management
Prioritizing risk management is a must in any trading and will help to minimize your losses.
- Use demo accounts
Always use demo accounts or simulated accounts when stepping into forex trading for the first time and before trying trades on new trends.3
How long will it take to learn forex trading?
The time it takes you to learn forex trading relies on the time you put into it.
However, if you really want us to come up with a number, we would say that you will need at least 3-4 months to cover the basics. Mastering all that is forex trading will take you somewhere from three to five years.
In the process of learning about forex trading, it is always better to follow courses, read books, or view videos by people who have proven forex trading experience. Rather than following a cheap course or finding a cheaper alternative, spending a little more time on the learning process will ensure better results for you.
Make sure you do not rush the learning process and learn all the information that you can find. This will help you to make fewer mistakes in your forex trading.
Forex is the most traded financial market in the world. So if you, too, have plans to get into Forex trading, it’s important that you learn about it very well before going for trades.
Having good knowledge will help you make profitable trades more often without making it a risky gamble. However, learning about Forex can be challenging if you are new to trading due to the complex concepts and strategies that you have to make yourself familiar with.
But the good news is there are many ways that you can choose to go about learning Forex trading, as we mentioned in this article. All learning methods have their pros and cons, so selecting which way you want to learn Forex, whether you like self-learning or signing up for a course, is up to you and should be done to fit your situation.
If you are going with self-learning, you can always use Icon FX’s resources, where we have all sorts of information aimed at all types of traders. All our resources have been created to help you understand complex stuff easily. With us, you also have the freedom to create a demo account and make trades with what you have learned without any risk of losing capital.
Frequently Asked Questions
Forex trading is a skill that requires a lot of knowledge. As a beginner, learning about forex can be confusing. But if you get past the steep learning curve, it is not that hard.
Self-education or self-learning is the best way to learn forex trading. You can find plenty of verified resources on the internet to help your course.
You don’t need to put any money towards forex learning as there are a lot of ways you can learn it for free from the internet. But if you want, you can put some money in and join a forex trading school or a course to gain better results.