Investing in Forex can be frustrating, risky, and can often end in loss. Even experienced investors– in forex or stocks - can also sometimes fail miserably in this market.This problem presents an opportunity to understand this challenging system, breaking the code on predicting stock prices and ending the day on a profitable note. Finally, this motivation can be accelerated by opting for a Forex Trading Course.
Through the certified and reputed courses offered, on an individual level, one can find the market more familiar and can be quicker in recognizing patterns. The courses offered are both online and in-class, individual and in a group. Thus, beginners can increase knowledge and hone skills by the flexibility offered through these courses.
Any good course should have the following qualities:
Any course should be certified by a financial institution or a regulatory authority, examples of which are the CFTC (The Commodities & Futures Trading Commission) or the National Futures Association. Although on a global scale there may be many such agencies.
This can be judged by looking at the faculty members of the course and their credentials. Online forums are also preferable to get an idea as to the credibility of these faculty members.
C) Terms and Conditions offered:
Before selecting any course, its terms and conditions must be addressed to ensure if any unreasonable promises are not being offered. The ease of access to the market brings good learning but recently, it has also brought to fore, the increasing scams out there. Thus ensure the above two qualities are met before selecting any course.
These courses are offered through three major categories and depending on the enroller's time and cost, any course can be selected.
A) One on One:
Direct interaction with a professional and reputed trainer which guarantees covering not only the basics but also the practical and real-time application. Topic revisits until a concept is clear, the pace of the course and clearing any questions at any stage are all up to the enroller's disposal. To reiterate this can be done online or in-person. Through online courses, instructors share trading simulations, PowerPoint presentations, eBooks, etc. There will also be some real-time trading for a better understanding of risk management and strategy assessment.
Learn with a group of traders by sharing ideas and putting them into use. Although booking in advance is advisable for the limited number of seats. This course will have fixed topics and fixed timings during the day.
C) Post – Education:
Even after a course-completion, personal attention is provided in this category with hourly sessions on particular topics taught. It's best practice to keep revising the concepts learned to further open up to new challenges and through this course, the enroller can revisit a particular topic.
Forex education topics included in this course are:
A. What is Forex and styles of trading
B. Forex terminology, charts, and gapping
C. Market structure
D. Technical analysis
E. Fundamental analysis
F. Psychology in Forex
G. Risk management
I. Forex trading strategies
Below, some of the above structures are expanded and insight is provided as to what can be expected from the topics mentioned above taught in this course.
Introduction to Forex:
Forex stands for Foreign Exchange which is in a basic sense buying and selling different currencies. It's a large electronic network of buyers and sellers, who can range from an individual trader to a bank. Thus, it's a decentralized system where trillions of dollars are exchanged every day and works in whichever market is open at the time during a 24 hours day and a 5 days week.
Stock prices are understood with a pictorial representation (Bar or Candlestick graph) highlighting prior values of the stock up to the current value. Even though it's impossible to predict the exact movement of a stock, one can come up with probabilities on how the stock will move based on Chaos Theory which is all about finding the underlying patterns in all the chaos. A good prediction would yield a lower risk-reward ratio and also help in deciding when to enter and leave a stock. Thus it can be said, to be good at predicting the stock price one must be good at risk-management, have discipline, and the ability to control emotions. There are two flags (Bullish and Bearish) that stand out in predicting trends and deserve a mention while recognizing patterns of a stock price. The bullish flag, in a nutshell, signifies a downward trend after the highest high and the lowest low has been breached. Conversely, the bearish flag indicates an upward trend. Having proper forex education can help improve knowledge on technical analysis of graphs.
There are five key drivers for a forex market – Central Banks, Economic Releases, Geopolitical Tensions, Weather, and Seasonality. Central banks are currency regulatory authorities and they can take various actions (Introduction of non-traditional policies, a variation of interest rates, etc.) to change the currency. An economic release can also be unpredictable and challenging to predict, before its release, the investors will have to take a call on how close the consensus prediction is to the actual release. Geopolitical tensions, seasonality, and weather refer to the relationship a country has with another country and the weather cycle of Earth, all of which hurts trading.
It's important to know the type of orders which a trader can receive from a party. The types are – Market, Limit, Stop, and Trailing Stop. It's usual practice to use a combination of these orders to protect any investment. These are called Contingent orders and are conditional. If a particular condition/order is met, execute another non-related independent order.
Finally, all of the above is supported by real-time and past examples for a better understanding of the volatile market that Forex is. Armed with better tools, a trader can make the most of it and benefit at the end of the day.