What’s the best way to learn forex trading as a beginner?

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What’s the best way to learn forex trading as a beginner?

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I would always recommend going through some reading material before you take any further steps. Investopedia is a great resource for beginners. You need to be familiar with the environment and the terms used in the trading community. Once you get a grip on the basics you can move to simulations like this stock trading game. It is very important to start with simulation first. Here is why:

Once you are done with the basics you will be under the impression that trading is easy and you are ready for the real thing but no one can teach you how to control your emotions. We are all human and, like it or not, greed is a fundamental part of our nature. Once a stock starts going up you will probably FOMO and risk losing a big chunk of your capital on a short term price surge. Simulations are great for practicing control because you will be trading in the same environment as the pros but with no risk of losing your starting capital.

Start slow and don’t believe the “get ready to quit your 9 to 5 in a month” stories. Trading is stressful, time-consuming and risky. Take it step by step and be patient.

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There’s no one-size-fits-all path to learning about Forex. There is so much to learn that it will take you years to master it all. As a complete beginner, your first step would be to gain a fundamental understanding of the Forex market and how it works. Here’s a rough idea of the steps I’d recommend you go through:

Step 1: Learn the basics
First, read as much as you can. Start with comprehensive ebooks that explain all the key fundamentals. I’ve heard good things about the forex trading for beginners pdf by Forex Illustrated, so start there.

Step 2: Devise a strategy
Different traders have different strategies and trading styles. These strategies are often based on technical and fundamental analysis. Learn about common trading methodologies like pivot points, elliot waves, and Fibonacci studies and then use these to inform your own trading strategy.

Step 3: Practice
Once you’ve got a solid foundation, try your hand at a virtual trading game like Forex Hero to practice and put your knowledge to the test. You’ll end up learning more as you go.

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