The Number 1 Mistake that Will Stop You Making Money from Forex
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Are you ready to become a forex trader?
By now, you’ve probably heard of the recent growth in popularity of forex and are maybe even considering trying it out for yourself. Nothing wrong with that! On the contrary - forex is the most liquid market in the world and on top of it all, it’s accessible to everyone, as long as you have a computer or a smartphone connected to the Internet.
Forex trading is now offering numerous great opportunities to boost your income and many people are jumping on the bandwagon, ready to benefit from the $5 trillion daily trading volume.
As we already mentioned, the forex market is a decentralized global market, where currencies are being traded. If you decide to become a trader and benefit from the forex trading earning potential, buckle up and get ready for the long but rewarding road ahead.
You basically have to start from scratch and build your way up, armed with not just goals and determination but also knowledge and ideas. New traders often mistake their enthusiasm for skill or their ambition for guaranteed success.
Things, however, go way beyond that. If you want to be a trader and make money, you have to start by getting a proper trading education. Don’t expect to make money out of thin air. You have to dedicate time and effort to learn as much as possible and only when you feel confident enough with your skills and understanding, you can jump right into the forex world.
In the following article we, at Trading Education, will discuss in more detail how becoming a forex trader without getting the proper trading education first can be the biggest mistake that can prevent you from getting money. We will also emphasize on how the level of your education and knowledge of forex can be one of the most defining factors for a successful trader. Let’s get down to it!
Why is it so important to get a forex trading education?
Let’s get one thing straight - you can’t make money if you start with no forex education. Forex is as easy as any other financial market, as long as you understand what’s going on. Every little detail can bring you one step closer to your winning trade and help you advance your trading career.
Ultimately, think of forex trading as any other profession - you need time for theoretical learning, as well as a period of gaining experience, getting you ready for the market.
Forex is certainly not a quick-buck-scheme. To be a successful forex trader you have to not only be able to smoothly go through a relatively large volume of data and, of course, be able to comprehend and analyze it, but also have the ability to spot trades and make decisions in the blink of an eye. This is a specialized skill, obtained only after a solid preparation, consistent practice and reasonable effort.
You also need to sift through massive charts and stay alert at all times for any changes in the numbers. You still think you can make it without putting time and effort to acquire all those skills?
We have awesome news for novice forex traders, who are willing to dedicate hours to perfect their trading journey and build good strategies.
Trading Education is now supporting future traders by providing a free trading course, covering all the necessary information about forex trading that can help you learn how to trade effectively. Moreover, the free course is giving access to numerous free trading education materials, such as videos, webinars, lectures, quizzes, articles and insights. All that, combined with your determination, will result in nothing but great things ahead.
Here are some of the basic and most important things you need to understand about forex trading if you are a beginner. Keep in mind that it would definitely be a big misstep for your trading career if you kick things off without knowing the following aspects of forex trading. All of them and more will be covered in our Trading Education course:
- The Basics: Forex trading has its own unique terminology, basic principles, theories and calculations. Without knowing what a pip or a strike price is, it’s absolutely impossible to trade. To the average person concepts like yield and return, carry trade or deriving direct quote might sound like a language from another planet, however, for forex traders, these concepts are of fundamental importance.
- Mechanics of Forex: If you want to become a trader, you have to be well-informed of the forex mechanics, such as how to place a forex order, what are the different types of orders and how to make a long/short position on a currency pair. Moreover, you have to understand how to exit a position and how profit/loss is calculated (it is usually done automatically by the trading platform, however, you still need to understand how it works). Learning about the mechanics of forex also means understanding leverage, margin ratios and how to maintain funds in your trading account.
- Analysis: As a beginner trader you have to know how to analyze the market because this is not just a part of trading - it’s one of the most essential parts of forex. There are two approaches when it comes to market analysis - fundamental and technical. The difference between those two will give beginner traders a clear idea of how to predict the direction of the currency price and spot trading opportunities.
- Strategy Formation: New forex traders will have to understand that there’s no specific rule or a guaranteed path to success that will win you profits immediately. You have to understand the main principles of forex, navigate them and do your own research that can show you some of the popular trading strategies and tactics that might be beneficial for your winning trades.
- Risk Management: Before becoming a trader and even thinking of making money, traders need to realize that forex may indeed be a very exciting environment, however, it’s a speculation tool and that makes it highly risky. Of course, there are ways and tools that can help traders expect and manage risks but it’s of immense importance for beginners to educate themselves when to risk and when not to - a skill that comes only after good preparation.
This is just a small chunk of what awaits you behind the forex doors. Still think you can go ahead and become a trading God without the knowledge? Think twice.
Where can I get a forex trading education?
We have already established that deciding to trade forex without the proper education would be not just unreasonable but most probably result in one unsuccessful story to tell. We are going to assume that you are ready to invest the time and effort to learn forex. The next step for you would be to discover a suitable course that can teach you how to do things and become one of the pros.
A quick search on the Internet will present you with numerous possibilities, ranging from classroom courses, private lessons, books about trading and more. However, keeping in mind the fast-paced world that we live in and the fact that most people prefer the convenience of their home when it comes to learning, Trading Education have designed an online-based course, covering everything a beginner needs to know about forex.
The forex education course is free and it features materials that can easily be downloaded and saved for later use. For individuals who want to start trading and turn forex from an additional income to their main job, this type, of course, is highly preferable. Trading Education is also offering a certificate after completion of the course.
Everything you want to know about the course is available on the official website so go ahead and check it out over here.
Signing up for the free forex trading education course, provided by Trading Education will not only answer all the questions novice traders are asking themselves right now but will also allow them to control their own learning time and capacity.
Let’s put it this way - a trader with education has a higher chance of managing risks and ending up with profits compared to an uneducated newbie trader who thinks everything in life is easy.
Think of forex as any other professional occupation - you need skills, continuous learning and improvement. New traders need to expose themselves to quality education and resources if they want to be successful. After all, how can it be possible to be a profitable trader if you don’t have a trading plan, style, risk management strategy and the ability to understand signals, process numerical data and make quick decisions?
Forex trading is guided by rules and specific laws; it utilizes terminology and requires strategies and the knowledge to apply them. The trading business is something that can last for a lifetime. Therefore, once you acquire the necessary skills, knowledge and confidence in yourself, expect nothing but progress and self-fulfilment.
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