“An investment in knowledge pays the best interest” Benjamin Franklin!
The key to success is understanding which path must be taken, for success to be reached. This very much applies to achieving desired results in trading.
Why is forex education important?
With millions of people around the world giving trading a go, it is logical that not everybody succeeds. Does the problem lay with trading or the traders themselves? It can be a little bit of both, but more often than not it boils down to the fact that many people jump into trading without any preparation.
Because Forex is easily accessible, and anyone can open an account with a broker and start trading, it’s easy to skip the training part. Forex education, however, is a vastly growing trend which should not be ignored.
Through forex education, beginners can get to know the concept of trading and all its aspects before investing money and opening accounts.
Is all forex education helpful?
It all starts with finding the right source.
The internet is not lacking sources for forex education, but first, you must keep in mind that so much of it tends to be smoke screen covering the facts of how the market operates. Instead of simple explanations, they are complicated and confusing. It is also important to note that a lot of educational material is out there for alternative purposes such as:
- Sales tactics to convince beginners to open accounts, instead of educating them.
- Content for blogs which are created only for advertising purposes.
- Content to fill up a website to help its ranking.
So check the quality of the material you find, and the credibility of the website/ blog you find it on, before you invest time in it.
How to use forex education?
As a beginner, you will need help with navigating the information step by step. Start by learning definitions such as “forex”, “pip”, “long”. Understanding the forex terminology will make learning much easier.
Then move on to basic questions such as “How to use leverage?” or “What commodities can I trade?”.
Look for answers which are short and to the point. By learning every new piece of information separately, you will be able to build up your knowledge with much less confusion.
Forex education through videos
A rising form of education is video. We generally process audiovisual information faster than text, and some companies have smartly managed to merge forex education with simple and easy to follow videos about trading and all aspects of forex.
This makes learning faster, easier and more fun. One great example of such educational material is easyMarkets’ Discover Trading video series.
Put what you’ve learned into practice
Once you feel you’ve done enough reading, and you are familiar with the terminology, basic facts, and trading principles, you can put that knowledge into practice with a risk-free demo account.
Most brokers offer demo accounts, where you can trade in real market conditions with a real trading platform, without investing any money. You’d be surprised how much help you’d get by trying real trading, and practicing everything you have learnt.
In conclusion forex education is a big part of trading, and should be a must for every beginner.
By Deema Osman