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FOREX TRADING TUTORIAL
Forex trading is like learning a new profession. Unless the financial markets are a subject you already pay daily attention to, you will need to read up on what goes on. As well as an understanding of the financial markets, you will also need to learn about how to make a trade, make use of the trading software, operate your trading account and countless other things. A forex trading tutorial will educate you in all of these areas. It really depends on how deep you want to get into the whole foreign exchange scene, as to how you choose to educate yourself. Online is undoubtedly the way to go, but there are numerous publications that you can also study. The method of teaching via a forex trading tutorial, could be via a live feed or a pre-recorded video. Also available are live events that will feature a forex trading tutorial or two, as part of the whole training programme. Local colleges may even offer a forex trading course that may help. Some forex brokers offer their own forex trading tutorial for free, as part of their own forex bonus for new clients Others will charge you to make use of their tutorial services. Don't just opt for the one that charges for their services because you think that it will be more worthwhile. Just because something is free does not mean it will be worthless.
FOREX TRADING TIPS
There are many people out there who will be happy to share their experiences with you. They will gladly pass on their own forex trading tips. These will, of course, be based on their own trading knowledge and forex trading strategies they have tried out for themselves. Bear this in mind, as a strategy that may prove profitable for one person will not necessarily transfer to another. You could try out some of the tips you learn with your own demo account. Put the new forex trading tips into practice without risking any of your own money. It is always good to try something out with “play money” before you put up any of your own money. Practice, as they say, makes perfect.
FOREX TRADING COURSE
As with the forex trading tutorial, you can take advantage of this type of learning either online or in person with an actual real tutor. Even if you choose to gain your knowledge online, your forex trading course will probably give you the opportunity to take part in live question and answer sessions, or at the very least be able to email any queries or ask about details of forex trading you still haven’t quite grasped. You can pick and choose the subjects and areas you want to learn about and tailor your forex trading course to meet your own needs. This is one particular advantage online training has, over attending a college or pre-arranged forex trading course at a college or business centre. A pre-organised course will have to cater for a broad spectrum of people and cover the basics as well as more complicated and intense areas of the subject.
FOREX TRADING GUIDE
There are a heap of books out there to use as your forex trading guide. They will educate you in the ways the forex market works, using different forex trading strategies, and what forex trading signals to watch for. Aso you will be given the basic knowledge to start trading and the tools and techniques every novice trader needs. You will be well equipped to take your first steps into the forex trading world. As with other forms of learning about this subject, many forex brokers will offer you a forex trading guide as part of their forex bonus. A guide will often include a glossary as part of its information. You will have all of the forex trading language clearly explained so you fully understand what you are reading everywhere else on the internet, as well as the terms your broker is using.
FOREX TRADING TRAINING
Take a look at YouTube and you will be surprised at what you find. Just type Forex trading into the search bar and a whole list of forex trading training options will present themselves. Many of the top forex brokers run their own forex trading training sessions, sometimes in house but mainly via the internet. You could also choose individual forex trading training. You could be given Powerpoint presentations, ebooks, trading simulations and many more training options. Make use of all the expertise out there, in order to enhance your forex trading experience and hopefully make your trading more profitable. The important thing is to not rush into it but take things slow. And also bear in mind exactly what you can afford. Your training options will differ in price. Some will be free and other will be exhorbitantly expensive. Weigh up the cost with what you will be learning, and how it will pay off.
FOREX TRADING STRATEGIES
As with training, guides and the forex training tutorial, there are many websites out there who will offer to share their strategies with you. Many individual traders write their own blogs, detailing the way they practice their trading and what forex trading strategies they use. These are always useful and informative to read and you can sign up to receive their blogs automatically into your own inbox. Many blog writers are fun and amusing writers and you may find yourself having a chuckle as well as improving your knowledge. As with other options mentioned above you could take advantage of free information or choose to pay for a person's expertise. Depending on your knowledge and the time you are able to spend on your forex trading research, will determine the level of difficulty of the strategy you choose to adopt. There are strategies for beginners, those who have little time to spend watching the markets, and more experienced and knowledgeable traders.
FOREX TRADING SIGNALS
Many forex trading brokers offer a forex trading signals service. A forex signal suggests when is the right time to enter a currency trade. Signals need to be passed on quickly or the time will have passed for the trade to take place. Signal service providers use various kinds of analysis on which to base their interpretation of the market. These providers display their information in a variety of ways, including graphs, historical movement of pips, forex trading tips, and also guides, courses and training.
FOREX TRADING FORUMS
There are forex trading forums online that you can register with. You will have the opportunity to view other traders thoughts and problems as well as any successes. You will be able to chat with others all over the world and discuss strategies, thoughts and analysis. Also on offer will be the usual forex trading tips, forex trading guide and training opportunities. Facebook has a number of ways you can learn more about forex trading. Join one of the forex networks and make like minded friends across the globe. Twitter is another avenue worth exploring and has many interesting feeds to follow, both from forex trading professionals and amateurs who just like to share what they have learnt.
FOREX DEMO ACCOUNT
One excellent way to brush up on your skills and test your knowledge is to open a forex demo account. You will be able to get acquainted with a broker's trading system, their platform and the software that they use. Don’t jump straight into trading with your money, enrol on a forex trading course or use a forex trading guide and test your understanding, before you do it for real. You get the opportunity to practise the different forms of trading analysis and you can take your time. You can learn about money management, which is often a skill that is forgotten or ignored. It is, however, a good habit to have. This account won't be able to emulate the ups and downs of the current foreign market but will give you an insight into how it can fluctuate.
Forex conventions are held fairly regularly in a variety of locations around the world. Two of the biggest held this year were one in Toronto, Canada at the end of October and one held in London at the beginning of November. Both gave forex traders and investors the opportunity to learn from renowned financial experts. There were networking opportunities and the posibilities of meeting and sharing ideas with other investors from all over the world.
WHAT AREAS OF FOREX TRADING WILL THESE TRAINING OPTIONS COVER?
- An explanation of forex trading.
- Reading quotes and understanding the language.
- Risks and benefits
- The history of forex trading
- Economic theories
- Types of forex trading strategies
- Opening a forex account
- Trading with a forex account
- Forex trading tips
SOME COMMON FOREX TRADING TERMS
- All or none - a request to a broker to complete the whole order at an agreed price or not to take the order at all
- Anonymous trading - the identity of the participants to the deal are not revealed
- National banks of a country - the national bank of every country fixes its own daily monetary exchange rate. These fixed rates are used as an indicator of trends by other banks, traders and dealers.
- Appreciation - in response to market demand the value of a currency increases.
- Balance of payments - transactions made by one country with others over a certain time period
- Balance of trade - measured in the value of exports minus imports, between two countries
- Base currency - the currency in which an investor keeps his books.
- Basis - the value of the difference between cash and futures price
- Bear - a person who invest because they believe prices will go down
- Candlestick chart - looks similar to a bar chart and depicts daily highs, lows and closing price
- Central Bank - implements a country’s monetary policy and prints money and is usually independent of government
- European Monetary Union - their goal is to establish one EU currency (the Euro)
- LIFFE - London International Financial Futures Exchange, comprised of the three largest UK future exchanges
- Long versus short - this means keeping hold of a currency for a long period of time, at least a week
- Margins - these are another form of leverage. Basically they are credit extended to traders allowing them to buy in large amounts without putting up all the actual money themselves.
- Stop loss - this is used to protect your profit
These are just a very small sample of the different phrases and words that are regularly used as part of trading in foreign currencies. It is good to learn them to get a full understanding of the information you read.
We have introduced you to some of the options available for increasing your knowledge of the forex trading market. We have also tried to guide you in choosing a forex broker to trade with, as well as help you understand what forex trading involves. We hope you now feel confident to make your way in this new investment opportunity. There are pro and cons, as with any form of investment, but you are now equipped with some of the tools to give it a go. Good luck in your ventures.