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Thursday, 16 December 2010

Getting a Solid Forex Trading Education

There are a lot of Forex trading courses online that promise to teach you everything you need to know to jump into the market with confidence. If you are new to Forex, though, how can you tell which ones will truly provide you with the solid Forex trading education you need?

A reputable course should training material on all the fundamental concepts for beginners, including:

*Exchange rates *Fixed rates versus floating rates *Currency pairs *Bid Prices versus Ask Prices *Spreads *Lot Sizes *Margins, Margin Calls and Leverage *Pips Values and their role in calculating profit and loss *How to evaluate leading economic indicators *How to read Forex signals and charts

This is just the bare minimum. A really good course should also walk you through a variety of trading examples, and show you how to perform 'test trades' yourself using a demo account with a reputable broker.

Another thing you can do to help speed your learning process is to immerse yourself in the literature of the market. There are scores of books and magazines available on the subject both online and off. You might want to have a look at the free, online magazine called Currency Trader (http://www.currencytradermag.com/).

Finally, consider enhancing your knowledge of other financial marketplaces. You'll find some concepts and terms repeated when reading about how to trade on the Stock Market, or how things like interest rates fluctuate for bonds, bills and other instruments.

This is especially useful if you feel more comfortable in one area of financial knowledge than other because you'll be able to see some related concepts from Forex in a context with which you are already familiar.

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