There is risk involved with Forex Currency Trading so getting in depth education and “how to” knowledge is a smart first move for a beginning Forex Trader. To get the basics, hopefully this blog and my email course can be a useful source online, on the journey to become a successful Forex Trader.
The key to trade Forex successfully is knowledge and training. The insightful trader has better understanding of the market behavior – how/why the market moves and with it comes better odds of making profitable trades.
Without a guide the beginner trader is more like a gambler, you may have a few wins but the odds are that you are going to have a negative return over the long term. With the right knowledge you can get an edge in Fx trading and improve the odds of being a profitable trader in the long run.
So what are the ingredients of a good Forex trading education? Well, for improved Forex Trading, the below topics and more, are covered in blog posts available on this site and also in upcoming emails, if you signed up to the email version of the course. If you can’t find all the posts for the topics listed below, they should be on the publishing plan for future blog posts.
Forex Trading Basics: Currency Descriptions, How to read currency Quotes, Major Pairs, Crosses, Exotics, Market driving Factors, Leverage & Margin, etc.
TA – Technical Analysis: Bars and Candlesticks, Price Action, Support/Resistance, Volume, Moving Averages (MA), Momentum & RSI, Elliott Wave & Fibonacci trading, Gann trading, Cycles, News impact and more.
Fundamental Analysis
Forex Trading Software – Metatrader
Tools
Trading Methods, Strategies and Systems – Basic & Advanced
Money Management: Risk/Reward, Stop Losses, Profit Targets
Brokers
Demo & Paper Trading
Live Trading
Putting it all together: Example Trades – Market Updates
The Power of Compound Interest
Glossary – An overview of common terms in Forex Trading
Let’s start with the descriptions of key currencies, i’ll focus on the most important ones in Forex trading. But first, note that the Forex market has changed in recent years, caused by several crisis like the one in 2007 & 2008 which forced the world economy into a deep recession and later the debt crisis in Europe.
Several EU countries came close to bankruptcy but the ECB (European Central Bank) bailed them out at the edge. The ECB’s intervention, the quantiative easing and the low interest rates policies around the world, in US, Japan and other major economies, had a strong impact and distorted the currency markets.
It could take years before we come back to a more or less free floating rates system and with it… overall more predictable market behavior. Fortunately, the special technical analysis techniques revealed throughout this course, should still give an edge in Forex trading, in my opinion.
In the next part of this course, i’ll descripe the personality of the USD, EURO and the other major currencies.