Learning About Forex

To learn forex market trading, you must have the right attitude to profit making and suffering losses. This is only through experience, and experience is only possible if you protect yourself from large losses by establishing a meaningful mentoring relationship with a successful trader ferom the beginning, or by taking classes from experts who offer their services online.

But make no mistake, whatever you do, as a trader one of the first things you’ll notice will be the importance of education and study. Just like it’s impossible to trade without a trading platform, it is impossible to profit without proper education.

Education itself is made of two different parts: reading, and study, where you create the basis of your future career, and trading where you apply the knowledge you have acquired in a real time environment for actual profits or losses.

Learning about forex is not a matter of weeks or months. Markets change all the time, economic events make new scenarios possible with each passing day. A successful trader must have a good understanding of these dynamics, and that is achieved through self-education fuelled by skepticism about everything you are told as a beginner.

Unless you understand the causes behind the choices made by your teachers, you are not gaining much for the fees that you pay, or the time that you invest. To be successful, you must have the inquisitive mind of a child when asking questions, and the discipline of a seasoned warrior when applying the lesson learned.

It is also important to have a good idea on what your education is aiming at. Education is not a way to eliminate losses. A good education will never grant you the skills that will allow you to create strategies which are successful at all times. Instead, education will help you absorb losses, protect yourself against emotional extremes, and most importantly, it will help you stay away from market euphoria and irrational exuberance when they inevitably occur.

Let’s remind you that the aim of a successful trader is not making huge profits. Even the worst traders occasionally make large profits which are later absorbed in an avalanche of losses which they fail to control or manage.

The purpose of the successful forex trader is always minimizing losses, protecting his account against market swings, while allowing the profitable positions to compound in value through trend following strategies, and scaling in.

Education is the beginning and end of online forex trading. The trader knows nothing as a beginner, but as he asks questions, he learns, and his knowledge leads him to new questions which all improve his skills and strengthen his character. Those who neglect trading, but get a good education may eventually get rich, be famous, or achieve nothing.

Those who neglect education and try to build a trading career, however, are doomed from the beginning to failure, despair, and financial disasters.