You Can Learn FOREX Trading

You Can Learn FOREX Trading
  • Opening Intro -

    Over the past few days, we've been discussing Forex trading and what currency exchanging can mean for you.

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Our first article defined what Forex trading is. Our second article outlined the steps you can take to open a Forex account. Today we’re going to go over how you can learn about Forex trading, with an emphasis on caution: there is a lot of information out there, but some sources provide details that aren’t correct or information that hasn’t been updated.

1. Beware of fraud

— As with any market, encountering fraud is always a possibility. You want to be able to trade in peace without someone engaging in a practice that will steal your money. The United States Commodity Futures Trading Commission regulates options markets and commodity futures and offers 11 warning signs of fraud. These include offers that sound too good to be true, avoiding companies or agents that predict large profits and knowing the company’s performance track record. Read the CFTC’s final rules regarding foreign currency trading too.

2. Practice, practice, practice

— You may think that you know everything about foreign exchange, but unless you practice regularly you may not be able to handle Forex properly. That means opening up a practice account and using your “virtual funds” to conduct exchanges. Unless you’re thoroughly comfortable with making actual trades, then you shouldn’t participate until you’re ready. Check out Investopedia for examples of what these practice accounts have to offer you.

3. Read expert articles

— Knowledge is power and the truly informed can handle Forex trading and make a profit. Financial publications such as the Wall Street Journal, Barrons, Financial Times and Forbes are places you can go to find expert articles. Avoid those sites such as eHow.com and WikiHow.com that accept user-generated articles to tell you how to trade. Some of those articles are vetted by editors while others are not — deal only with reputable sources including education websites to help you learn more.

4. Take in a webinar

— You can find some excellent webinars and online tutorials to help you learn about FX. Usually, wherever a practice account is offered, detailed instructions are served up to. For example, the Forex.com website offers weekly webinars where you can get an “…overview of forex trading, including key concepts, ideas, and market terminology.” Each webinar is followed by a 15-minute question and answer session where you can query the experts.

As with all things financial, the learning never stops. FOREX is fluid or always changing, therefore by keeping abreast of the industry you can avoid problems, learn how to make exchanges and make a profit. There is no guarantee that you will make money, but with education and awareness you’ll increase your chances of making a profit and avoiding a scam.

Money Management reference:

all about budgeting

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