How to Learn Forex

The foreign exchange market (forex) represents a decentralized market that is open to anyone who has a plan to become a trader. The principle is pretty straightforward: a currency can be sold profitably during a period of its price increase, or it can be bought profitably while there is a recession. That’s the market where the trading operations are executed every second with a direct influence on the levels of supply and demand change. It’s hard to be specific when it comes to a simple question of whether trading is easy or difficult – everything depends on personal ambitions and the level of competence. There are a lot of simple techniques that will help you with a quick start, but if there is a desire to join the team of trading professionals, then you should consider a step-by-step approach in getting decent expertise. Learning forex trading is actually easy, just be responsible.

How to get into forex trading?

Successful trading as a result of your daily work – sounds great, right? Once you prioritize the improvement of your practical part of trading and follow all market tendencies for boosing your theoretical knowledge, the above-mentioned profitable future will become your reality. It’s important to understand that the income-generating expertise can be achieved only when you touch all the required layers of trading like opening a demo account, analyzing daily news, watching educational videos, and reading reliable sources. You should literally dive into it. It’s like learning a language, you know it only if you devote your time to listening, reading, writing, and speaking.

How to get into forex trading? The thing that you should concentrate on is not how to gain profit, but how to gain knowledge, this is about putting the right priorities from the very beginning. The way how you start will define where you will be and what you will have. Ignoring the importance of step-by-step learning, there is a big chance of finding yourself in the middle of nowhere. From defining what is a currency pair to catching the trend and successfully closing the position – define your goals and have a plan. Learning how to trade forex successfully means devoting your time to the subtle aspects.

Ignoring the importance of step-by-step learning, there is a big chance of finding yourself in the middle of nowhere.

How to educate yourself?

Think of the materials you’re going to analyze as the determining factor of the level of your trading competency. The importance of what you read and watch is crucial while learning forex. As a newbie, you will be probably distracted by those 10-minutes-to-read materials after reading of which there still won’t be a clear understanding of certain things. It’s like eating fast food – you’re not hungry, but was it healthy, and will you have enough energy for being productive? Forex education is versatile: forex trading lessons, books, articles, or videos – everything is up to you.

Glossary

Being a narrowly defined sphere forex will bring a lot of words that you won’t know. Don’t skip the unknown words while learning since it’s crucial to understand the main message of the content. JustMarkets provides the accurate glossary you can refer to in case you’re puzzled by the meaning of trading terminology. It won’t take a lot of time to understand what certain words mean, just be patient and stay motivated.

Books and articles

It’s always a good idea to read a book, but pay attention to the worthy forex trading learning books: "How to Make a Living Trading Foreign Exchange" by Courtney Smith, "Currency Trading for Dummies" by Brian Dolan, or "Forex Trading: The Basics Explained in Simple Terms" by Jim Brown. You’ll get easy and understandable trading instructions from leading professionals.

Let’s get down to articles. There are a lot of them on the internet, but not all the resources are informative enough. Let’s make it simple - after reading a certain article there has to be an understanding of what you’ve just read. It’s good if you combine the theoretical part with the practical one, but it depends on what stage of learning you’re on. There are a lot of helpful and informative articles that you can find on JustMarkets.

Videos

How lucky you are to have all the possibilities and resources to learn what you want. The more time you devote to learning, the better you will understand whether certain resources are really worth your attention and time. You can easily find forex trading learning courses according to their informational value and structure. JustMarkets website provides access to online webinars and educational videos on different topics that might be interesting for the newbies and traders.

Demo account

Yes, it’s not obligatory to know all the theory in the world to start trading. To tell the truth, theory without practice is nothing.

The demo account enables traders to simulate the real trading environment without any risk of losing since it’s funded with fake money. All the technical characteristics of the demo account are the same as on the real one. It’s a fast and convenient way to start and see the real market from the inside without any risks. Beginners are highly recommended to start practicing on MetaTrader (trading platform) with the demo account to learn the functionality, test their trading skills, find knowledge gaps, improve and adjust strategies that will aim to meet individual trading objectives - all of this with free access to the latest market data that is updated every second. Being a seamless transition to trading on the real account, the demo one is not that part that can be skipped and ignored, it’s a must for the fundamentals. You can try practicing out with JustMarkets demo account to come to your own conclusions about JustMarkets as a broker.

Cent account

Experienced traders highly recommend undergoing the intermediate stage using the cent account where you can operate using real funds on the balance, the amount of which is measured in cents instead of the US dollars. Your investments here are too low to worry about the financial part of trading, but as soon as that’s real money, it will make you more responsible and attentive to every single move you’ll make as a trader. Better money and risk management processes are the main advantages of JustMarkets cent account.

Top 10 trading tips for beginners

• Prioritize quality over quantity. Always. This approach will teach you to be scrupulous about choosing the materials you read, the videos you watch, and the broker you trade with.
• Plan your learning. It’s crucial to know where you are and where you’re planning to be, let’s say, in a week. Of course, it’s complicated to know what to learn in a week if you’ve just started to learn trading, then plan for tomorrow: set the goal to spend 2-3 hours on the specific topic.
• Once you start trading on the demo account, having a trading plan will also be a must. Start trading on the standard account (with real money) only if you are 100% sure in your trading skills and the idea of closing the position unsuccessfully, what happens from time to time with everyone, even with experienced traders, doesn’t scare you to death. So, think of the demo account or the cent one as your best forex guide.
• Choose a reliable broker you can trust. Everything comes with experience. The more you trade, the better understanding you get about how everything works and whether your broker meets your needs.
• Once you start trading on the standard account and you’re not sure about your trading actions – stick to your plan and take a risk only if it’s affordable. You can always test your strategies on the demo account before operating according to them on the standard one.
• Trading means constant learning. Depending on your trading strategy, you’ll have to devote your time to everyday market analysis to be on top of things.
• Set realistic goals. No, you won’t become a multi-millionaire by the next month if you start today. But the thing that you’ll have for sure is the understanding of what forex is, how it works, and what gaps you have that prevent you from taking the next step as long as you devote your time to practice and theory.
• Review and analyze all your previous trading operations while you’re actively using the demo account.
• Stick to your own plan, strategy, style, and manner. It’s you who is sitting and thinking when to open the position, it’s you who is evaluating the potential gain, it’s you who is reading the market news, it’s you who can be emotional or calm.
• A trend is your friend. Oh, you need to learn about this one too.

Once you start trading on the standard account – stick to your plan and take a risk only if it’s affordable.

Conclusion

Forex is about trading at any time of the day or night. It works 24/5, but you keep in mind that you don’t have a trading schedule unless you trade in any of the four trading sessions: Pacific, Asian, American, European. It’s an important thing to consider while you’re about to start your path.

Getting started with forex means planning everything from A to Z. Don’t prioritize the question "How to learn forex quickly?", but stand more for a step-by-step approach.

FAQ

by JustMarkets, 2021.04.09