HOW TO ... LEARN FOREX

It seems that more and more people are deciding to make the transition from the 9-5 grind to the freedom that comes with working from home.  The internet affords hundreds of thousands of people the opportunity to work online from the comforts of their own homes.  The massive use of popular social media networks and tools has made working from home more possible than ever.

To learn Forex Trading, one must learn about Forex and one must learn about trading; while it is not always easy to separate one from the other, it may be more useful to attempt to look at these as two disciplines separately at first. Each requires a deep understanding of its own, each offers numerous and assorted ways to learn it.

To begin, one should always learn the Forex (foreign exchange) market first, even if only its basics, and even if only in a crash-course. There are many ways in which one can do so: one could choose to study the Foreign Exchange market formally, that is to say, via online classes, webinars, and/or via seminars, lectures, tutorials, university classes, or one could also choose a less formal method, that is to say, via (online or not) forums, private/public/interactive communication with experts, professionals, and even other students of Forex.

Basic knowledge that should be acquired before beginning to trade forex includes: Forex terminology, Forex symbols, Forex charts and graphs, history of the Foreign Exchange market, historical data, evolution of currencies, worldwide monetary systems, market activity, market trend, financial instruments, market professions (-the meaning of brokers, investors, consultants, etc), political factors that affect the market, economic factors that affect the market (-for example: interest rate, GDP, employment rates, etc), behavioral finance, psychological factors that affect the market, and last but not least, theories.

Once one has sufficient theoretical knowledge, one could go on and learn trading. Trading is a skill, and like any other skill, it needs to be practiced and practiced in order to be perfected. Practicing is almost the best mental training tool. This is why, when it comes to trading, the most useful way to learn forex trading is to practice (various trading platforms not only offer their services for free, but enable user to practice with demo money and with real-market rates, i.e. coming as close as possible to real forex trading but without having to risk losing any money). Via trading simulations, one could feel trading out; via trial and error one will know which trading techniques suit him/her best, which long-term transactions work, which require overnight trading, which need to be short-lives, how to control risk.

Having learned a satisfactory amount about the Foreign Exchange market, one could almost intuitively apply the theoretical knowledge into the practice of Forex trading. For example-if a news release came out about an increase in the unemployment rates, one should immediately be alarmed, for higher unemployment rates are not good for an economy, and will have a negative effect on it, which in return will have a negative effect on that country's currency. One, of course, will then act accordingly (sell or buy a certain currency as a result). This is to say, that the more knowledge one posses, the more s/he will be able to navigate the world of Forex automatically, for s/he will understand terms and charts (and follow their constant updating) and will know how to react fast to the release of economic news.

Studying never ends. It is important always to keep oneself on a learning curve; to stay in tune with this ever-growing market. One could always read books, magazines, visit blogs- and of course, read the newspapers; one's awareness to what goes on around him/her is a key component in becoming an experienced trader.