Necessary things to learn before venturing into forex trading.

[Hassanbenjamin]

To be a successful forex trader you need a lot of things and skills, many people end up failing simply because they don't have enough ideas on forex. On your personal opinion what are the things you need to learn before venturing into forex?

 

[Setho]

If you really want to venture into the forex market then one of the first things that you should know is about financial markets and the behaviour of human beings. General price action can greatly be traced back to how human beings generally react to a particular thing all their normal trading activity. You should also be able to have knowledge about how to manage risk and how to be able to manage profit also. This is going to ensure that you are taking only the right positions and also you are going to be conserving money while maximizing your full potential.

 

[Neuroid]

Things you should know before trading-

1) Fundamental and technical analysis - How to identify types of patterns & trends, and how to comprehend economic calendar and apply its knowledge in trading

2) Risk management and money management

3) Forex jargon

4) Brokers, types, and how to find a good broker

5) MT4 trading platform

6) Trading psychology

 

[Ponmo]

Important topics to cover before starting trading-

1) History of the forex market and its purpose

2) FX market terms

3) Types of fundamental analysis- technical, fundamental, and sentimental

4) Types of Forex Brokers and how to choose your broker

5) Trading platforms and how to use MT4 and MT5

6) Risk and money management

7) Trading psychology

 

[rextee]

Before you begin, you should be aware of the forex basics. That includes basic terminology and what the market is all about. After that, you need to focus on learning analysis. There are three types of analysis: fundamental, technical, sentimental. You should know how to read charts, apply indicators, and most importantly create trading strategies.

In fundamental analysis, you should know how to interpret the economic calendar. Other important concepts include risk & money management, the knowledge of brokers, and trading psychology. You can find all the content for free.

Resources

1) Babypips (Course)
2) Forex Factory (Economic calendar
3) AlphaTrends (Technical analysis )
4)Trading 180(Technical and fundamental analysis)

 

[Ivo Zetticci]

This is why Demo account is open for all; traders need to build their trading skill in demo! On the other hand, if you wanna save your capital don’t go for live trading when you are inconsistent in your demo trading!

 

[Jodie Barnett]

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[pawelkolasa]

Before venturing into the forex market:

1. A newbie should know all the factors that may influence the currency pair he/she has decided to trade.
2. A trader should pick up a trading strategy that’s most suitable to their trading style.
3. One should have a proper trading plan.
4. A new trader should use a strong risk management strategy.
5. He should develop a good trading psychology.

 

[Tactical]

The necessary thing to do before trading is to clear your basics. You shouldn’t start without having adequate knowledge about the market. The forex market is famous for its volatility. Read good trading books, take courses, and practise on a demo account before you trade live so that you are well prepared to make profits in this market.

 

[LaneBall]

Before venturing into the wild uncertain world of forex, it is imperative for all traders to learn:

Risk and money management techniques

How to use risk reward ratio and stop loss while trading

Balancing emotions while making decisions

Preserve discipline, consistency and patience

 

[Eduard Hahn]

To survive long in the forex market, it is important to acquaint yourself with a number of things:

Familiarise yourself with money and risk management techniques

Start with a demo account

Wipe off emotions while making trading decisions

Trade an amount you can afford to lose

 

[shirleencomer]

The most important thing that you should know before starting to trade forex is that losses are real and you may never be able to recover them. So, if you can take losses, only then, you should take a chance in trading. Otherwise, you can look for some other job that will pay you regularly.

 

[Wordsmith]

Your personal life experience can help you a lot in your trading career. For example, if you are someone who doesn’t spend unnecessarily, you will probably not be taking any unnecessary risks in the market. You will risk your money only when you are ready to take a risk and not just because you have money. Also, if you are someone who doesn’t get affected much by emotions; forex trading can get smoother for you in comparison to traders who are emotional.
If you think that you are not good at money management skills or need to learn how to control your emotions, you better do that before you start trading.

 

[brindagladden]

The only thing I want to let you know on the basis of my personal experience is that success in trading is a matter of patience. Be it waiting for the right time to enter or exit the market, testing several strategies before you find the most profitable one for you, or analysing the market, you have to keep patience to make your moves work for you.

 

[Shaf]

As a beginner myself, some few things I've noticed to be very important are not even mentioned in articles or videos online until you experience them yourself.

One of such is the importance of control. You have to control your emotions, know when to trade or simply stay out of the market, when to cut your losses no matter how painful and when to take profits without greed that the price would pump further than that. This is something that is best experienced.

Another one is the importance of learning the basics. Many people in their quest to make money fast go straight to strategies they can use without understanding that learning simple things like price action, use of indicators and why they are used, how to determine market sentiment and other small things can help in deciding if you win or lose.

 

[Setho]

The truth is that the forex market is not something that you can be able to completely learn in a single day and as such I advise that you should take up to six months in order for you to learn the basics.

First of all you should develop your learning by knowing exactly why the financial market is existing and the type of problems that it hopes to solve . You shouldn't learn about exchanges especially the ones that are licence to practice in your country and the various differences together with their various support for trading .

The next thing that you should learn is strategies that you can use to make money. Generally people tend to be long-term or short-term investors and they usually use technical and fundamental analysis in order to know how to position their entry. Based on your own trading activity you should select a particular one that fits your personality and the one in which you think you can be able to make the best out of.

You shouldn't learn risk management because it is not everything that you are going to enter that is going to be a winner trade and I thought you will want to condition yourself not to lose so much money .

 

[Sotherefore]

I don't really have an interest to learn how to trade forex now and I may not even be able to trade it in the future because it's still not in my area of interest generally. If I am to engage in anything I would rather engage in trading of cryptocurrency because that is the one I was exposed to so many times , Because of the exposure I have some understanding of cryptocurrency more than forex at least to a certain extent but that does not really mean that I can be able to trade crypto now , no.

If I change my mind later and i am interested to trade forex in the future there are so many things I have to put in place that will really help me to know how to trade perfectly and one of the most important thing is the technical aspect of Forex, A lot of people will consider it to be the technical analysis , it is very necessary because if you have a better understanding of that it will help you increases your trading accuracy.

It may not likely be easy but is something that will require a lot of time and absolute dedication for a person to succeed.

 

[Heiden Lang]

Know its basics. Without basics, you will be clueless. So that should be the first task of every new trader. Other than that, I think all traders should check how forex trading will help them meet their financial goals. This part is necessary because many traders go with no goals or unrealistic expectations, which many times do not fulfil.

 

[Torsade]

The most important thing to learn before trading forex is to learn to accept losses. They are more difficult to accept than said. So, the best I can suggest is to use an amount to trade that you can easily forget about. There are high chances that you will lose.

 

[Holicent]

Forex, or foreign exchange, is a market where traders can buy, sell, and exchange currencies. To become a successful Forex trader, it's important to have a strong understanding of the basics. The first things to learn in Forex include:

Understanding the basic terminology such as pips, spread, and leverage, which are essential to understanding how the market works and how to make trades. Familiarizing yourself with the different currency pairs and how they are affected by economic and political factors. Learning technical analysis and chart reading skills, which can help traders identify trends and make informed trading decisions.

Understanding risk management techniques, which can help traders limit their potential losses and protect their capital. Familiarizing oneself with the basics of fundamental analysis and how to read economic indicators that can affect currency prices. Finding a reliable Forex broker. Developing a good strategy, and practicing it using a demo account before investing real money. Continuously educating oneself on market trends and strategies to stay ahead of the competition. It's important to keep in mind that Forex trading can be risky and it's important to be disciplined and well-informed.