Forex is the term used for the Foreign Exchange market. It is the most traded market globally and can be accessed by anyone with an internet connection and bank account. Many people believe that Forex trading is complicated, leading them to wonder if they can teach themselves to trade on the Forex market.
It is entirely possible to teach yourself to trade Forex. There are many webpages and YouTube channels that can teach you the basics of trading the foreign exchange market. It will take longer than using a course because there several parts of trading that must be learned.
Trading in the Forex market is a great way to build up a portfolio and learn successful strategies, but it can be nerve-wracking. Read on to learn what it takes to teach yourself how to trade on the Forex market.
Can You Learn Forex by Yourself?
Learning to trade on the Forex market takes time and dedication. Companies that provide work-at-your-own-pace courses claim that completing the work takes anywhere from a month to 12 weeks. Undertaking this endeavor on your own could take much longer than that. The main thing to concentrate on is how much experience you are getting.
Like most things, trading in the Forex market is something that is going to improve with experience. The best way to build up this experience is to build an account that allows micro-trades. Micro-trades allow you to start slow by making small trades. Some companies allow for the creation of a virtual account, which mimics transactions online.
Once you have a feel for the market, you can move onto a real account that will draw from your Forex account and enable full trading. Pacing yourself is going to be very important at this stage. Fear of loss can drive you to make rash decisions in hopes of saving money. However, if you stay the course, profits are in your future. (Source: Investopedia)
How to Trade on the Forex Market
There are three things that you must learn to teach yourself to trade on the Forex market:
- Learn how to read the charts – The chart is a graph that will show certain specifics about a type of currency. Charts concentrate on how the price of money has gone up and down over its trading life. These charts provide critical data that shows how a currency is trending and its profit potential.
- Learn the strategies – Investment and buying strategies are as big a part of the Forex market as any other market. There are proven strategies that ensure that you make a profit on your investment. Each system is based on time ranging from seconds per transaction to years.
- Learn the trading systems – There are two types of trading in the Forex market: mechanical and discretionary. Mechanical trading takes the worry out of your hands and works on a system with little or no oversight. Discretionary trading leans more on the experience of the trader to enrich their portfolio. (Source: Benzinga)
Learning the charts, strategies, and trading systems are essential to understand Forex trading. It sets a system that allows for short or long-term transactions and gives you a taste of how the market operates. Having a strategy provides a security net that doesn’t come with a free-wheeling trading style. Using the strategies and learning the numbers will be valuable.
Where to Learn Forex Trading by Yourself
The internet is full of companies and websites that want to sell their Forex learning system to you. The biggest consideration when learning Forex trading on your own is knowing where to learn the things you need to succeed. In the end, Forex trading comes down to doing research and compiling a data string that shows the progression of the currency you want to trade.
Some great places to learn about Forex trading are:
- Nasdaq– Nasdaq has an excellent section on Forex in their smart investments web series. Each article builds off the last to give the beginner a great head start learning how to trade independently. A great thing about video learning is that you can do it several times.
- Benzinga – Benzinga is an investment website that covers all markets. Their articles on Forex markets and trading are some of the best content on the subject. They cover everything from starting your account to choosing a broker. Each day they publish new content and discuss market trends and tips.
- Investopedia – Like the other selections, Investopedia is a website that deals with trading of all kinds in every market. The best thing about Investopedia’s Forex section is the time they put into creating articles about advanced Forex strategies.
- Forex – For beginners, there isn’t a better place to start than on Forex’s website itself. The pages are easy to understand and form a learning pattern that is simple to follow. Forex also shows tips for investors in the trading platform.
- FXTM – FXTM’s website is one of the most useful Forex learning sites on the market. They have videos and drawings that illustrate charts and listings to accommodate visual learners better.
Websites like these are all across the internet, with free valuable information! Taking advantage of these resources is up to you. They are packed with information that saves you the burden of student loans and books fees. Learning on your own using these free webpages is going to be a lifeline to success.
Once a stable series of strategies has been learned, the trick is to keep up with current market trends. Happenings in countries, like natural disasters, can influence the rate of money at any time. Trends like these set off increases and decreases in the currencies and make the market lucrative.
Tools for Learning to Trade Forex by Yourself
Forex trading markets are volatile. Accessing your portfolio and making trades at a moment’s notice is crucial to success. Since the market is running 24 hours a day, it is also essential that you know which time zone you are trading in and the buyer or seller’s time zone. There are also other tools and items you can use to trade Forex by yourself.
Some tools to use for Forex trading include:
- Trade Journal – Keep a list of all the trades that you make. Excel spreadsheets can help. Reading and understanding the numbers and words will be very important as you will need to read the information later.
- Calculator – Trading in Forex involves a startling amount of math. It is best to have a calculator that can keep up with exchange rates and prices.
- Time Zone Converter – Since you are dealing with international currencies and traders, knowing what time zone they are operating in could make or break a deal. Some apps can be added to your phone or tablet to keep up with time zones.
Trading on the Forex market is intricate and in-depth, involving charts and numbers that can intimidate a newer trader. Being informed about Forex is the key to learning how to trade on the market, and learning will take time and effort.
Teaching yourself to trade Forex is hard, but not impossible. Paying attention to market trends and maintaining a trading journal will keep data at your fingertips and allow you to make informed decisions when the market turns your way. Remember that the market is always going to be correct, and your strategy should reflect market trends.