One of the first things to learn about trading is that you cannot study your way to success in this game. There are a countless percentage of new traders who buy all sorts of books on trading, attend all sorts of seminars, and seeks all manner of advice and tips from online forums; only to mix together what they’ve, and continue to loss uncontrollably. One of the keys to better trading outcomes is developing experience: the right experiences.
You do not need to study any specific subject(s) in school to become a good trader. However, there are certain academic pursuits which may lend favourably as you proceed in your development as a trader. Let us explore some of those briefly.
Trading is more about human psychology than anything else; and as such, studying psychology at university level could enable you develop certain skills and techniques with which you may better understand and monitor your psychological composition.
Trading takes place in markets, and markets are always influenced by a host of factors: including those of a fundamental nature. Studying economics, finance, or business at university level might prove useful as you proceed in your development to becoming a well-rounded trader.
Can I Learn Forex for Free?
If your choice were to be granted, would you rather more money or more time? There are a few ways in which an individual could seek to learn forex, including options that are partly free of monetary payments. But no option is free of time requirements. One can learn about various aspects of forex trading across the Internet, and in books; from alignment of mindset (introduced under ‘ SAPA’), to accelerated observation of technical indicators at work (made available here). But keep a few things in mind. Firstly, within this context, wherever monetary payments are saved or sidestepped, time requirements are increased. And, not all materials on the Internet, or in text books, will be of direct relevance or applicability to you and your journey of learning. So, it really is a matter of defining what your time is worth.
As you progress through various aspects and stages of learning, there comes a time when the utilization of a demo trading account could be unavoidable. But, perhaps even more importantly, there comes a time when the utilization of a real trading account (albeit lightly funded, initially) will be required for progression with learning forex, or any other market for that matter.
All in all, always keep in mind that the markets are businesses, and trading is a business. You either take it seriously, or step away from it.
What Should I Learn First in Forex?
Once you’ve finished with SAPA, the first trading-related learning you ought to commence is trading psychology. Referring back to the ‘Five Levels of Trading’, adequate understanding about trading psychology in general, and your psychology in particular, would not only enable you progress out of the ‘novice level’ of trading, but also have you better positioned to prepare a trading plan that is most suited to you.
It is important to recognize that trading psychology isn’t a branch of learning that can be completed in a couple of hours or days. It takes many weeks to begin truly understanding what it is really about, and how it applies to you.
Is Forex Trading Worth Starting?
Trading as an activity and a business is not suitable for every individual. It is no secret that trading, as a business, offers great potential for financial opportunities; but most people who seek such opportunities will never get close.
Forex trading is only truly worth starting for the individual who has what it takes to, at least, attempt progressing through the different levels of trading. There are certain traits which are suited to trading. If one has some of these traits and is willing to work towards acquiring some others, forex trading may be suitable.
DEDICATION TO THE BUSINESS OF TRADING
The aspiring trader must understand that dedication is a crucial necessity. One must be dedicated to the market(s) week in and week out, month in and month out.
EXCELLENCE IN THE BUSINESS OF TRADING
In accordance with the ‘ five levels of trading’, the aspiring trader must be prepared to push for the attainment of the higher possible level of expertise and skill; the very best one can be. This requires that one puts skill development over money attainment.
PATIENCE IN THE BUSINESS OF TRADING
Patience is a must have for every trader. Both one’s development and one’s practice of trading must be ongoing beneficiaries of patience and calm reasoning. In this line of business, one must remain calm in intense situations.
APPROACH TO THE BUSINESS OF TRADING
It is important to remember that trading ought to be engaged as a business; and as such, a professional approach should be adopted. One should be aware of both fundamental and technical considerations.