There are millions of people who trade across the world every single day in the forex market. Forex trading is not easy, it is not like, today you’ve invested a few hundreds of money and tomorrow it will make you a huge profit. To become the best in forex trading, you need to understand in very deep. Many software vendors ask you to buy their trading software for a few hundred bucks and tell you it will make money for life.
This is nothing but plain nonsense. There are numbers of fake brokers, fake forex signal service providers and fake vendors who try to fill their own pockets by misguiding you; you need to keep your eyes open while trading in the forex market. If you a brand new trader, you are probably looking for a genuine guide for your forex trading.
So, can FOREX trading be self-taught? Yes, FOREX trading can be self-taught. If you are interested in forex trading, want to get started with forex market and also you want to become a self-taught successful trader and investor, you are required to learn lots of things about forex and the forex market.
So, how you should initiate the process of learning about forex? Forex demo account is very effective. Forex demo is helpful in demo trading, which means, it is the account funded with fake money. As a beginner, you can learn a lot of things through the demo account. Forex demo account is offered by different trading platforms, it also helps in trying out the service of a particular trading platform or broker.
A trader who is interested in the forex market might have attended seminars, lectures, classes or courses, but all of these is useless until he actually trades with real money. Many people do well in a demo account, but when they start with a live account, they find a different result. Hence, you won’t be a good trader until you actually start trading with the real money.
Being a self-taught forex trader is not an instant thing, you have to work hard and get educated about tons of things of this market, learning never stops. Even successful traders don’t stop learning; they keep learning something new of this market from different sources. The reason why you should keep learning something new about this market is the forex market is very broad.
You are required to gain knowledge from different best sources, learning from quality sources should be very important. Because there are some sources in the market which misguide you about this market and you keep learning the wrong things. As a new trader, you can gain knowledge of the forex market from below given effective ways.
Some Best Ways to Learn Forex Trading
As a beginner, many traders make a mistake of learning to trade from wrong sources i.e. the sources which misguide them. So, what are the best ways to learn forex trading? Here are some best ways to learn forex trading and become a self-taught trader:
1. Use a Demo Account
Demo account is funded with fake money; it is one of the best options to learn some basic concepts of forex trading. Demo account is offered by different trading platforms and websites to help a new trader to experience their service.
Many traders also use a demo account to test out their new method; they can’t take the risk to try out a new method on their live account. Hence, they test out the method using a demo account. It is important to use the forex demo account only to learn basic concepts of this market, because both, live account and demo account bring different results.
Using a demo account for learning the forex market concept is okay. But, one should not expect that they would experience the same while trading with a demo account or a live account. Also, a newbie trader must be very conscious of scam brokers that rig their demo accounts.
Demo is simply a way to get your VOT (Volume Of Trades) and learn what not to do you can learn more detail here on New Paradigm demoing.
2. Use a Micro Forex Account
Many trading instructors often recommend opening a micro forex account. Micro forex account for trading allows you to start trading with a minimum amount of investment. It is the best idea for a brand new trader who wants to learn forex market concepts very quickly.
Micro forex trading account teaches you more than you can learn from any forex course, class, seminar or any lecture. Because it is a practical test for a trader, it shows how effectively a beginner trades and where it makes mistakes. After you’ve been trading with micro forex account and you have a sense of what you are doing, then you can transfer more money to your live account and increase the trading capital.
Using a micro forex account helps you in knowing what silly mistakes you have made while trading. If you are making mistakes while trading, it can teach you more than you can learn from any book or course. So, for a beginner, it is the best option to enter into the forex market by using micro forex account for trading.
3. Risk Management
Risk management is an utmost important factor in the forex market. Risk management and managing emotions both go hand-in-hand. When a person becomes emotional, greedy or fearful, here he makes mistakes.
A trader should have risk management capability and whenever he looks at the trading chart, he needs to approach it with a logical mindset and objective mindset.
Being a forex trader, you should not be emotional in the sense, fearful or greedy. A good trader also has a capability to manage the risk factor and do not take decisions when he is emotional i.e. greedy and fearful. A new trader can learn risk management skills in trading by opening small forex trading account.
4. Learn About the Currencies You Trade
Whenever an entrepreneur set up his business, he has knowledge about his product or service in depth. Similarly, as a trader, you should have knowledge about what you trade i.e. learn about the currencies you trade.
New traders often tend to enter into the forex market and start trading anything that looks like it moves. They usually trade randomly and at last, they face a huge loss. So, a trader, you should be aware of market conditions and you should learn about the currencies you are trading.
Therefore, the above four mentioned are the best ways to become a self-taught forex trader. For a new trader, learning should never be stopped, it should be continuous.
To become a self-taught trader, you can start out with having a demo account or a small forex account. It is better to test out with a demo account instead of directly using live small forex account. Because, by using a demo account first, you can learn basic concepts of this market practically and also you can test out the service provided by your broker or selected trading platform.
Hence, forex trading can be self-taught; the important thing is you need to acquire knowledge from the right source. There are many brokers who misguide you about trading and fill their pockets, new traders should be aware of such brokers and service providers. So, to be a self-taught trader, you need to keep gaining knowledge of this market and never stop the process of learning.