FOREX TRADING skill

Beginner Questions
1

Can I please have the first 5 mandatory things you should know to start say you are a Forex trader ?
E.g topics
Or Strategies

2

Hi
An interesting challenge. I will try with an answer.

1 Understand which currency you get more for and which you get less for (base currency). It is amazing how many people make mistakes by inverting the exchange rate. For example GBP/USD = 1.35. You get more USD for a GBP than 1. JPY about 1/100 of a dollar.
2 Go to a local store or post office and ask them how much does it cost in your local currency to buy 100 USD. Then ask them how much they will give you in local money for your 100 USD. They will want a margin of about 20% between buy and sell. Compare that with the spread on a Forex account and know that you have found a way to save 99% of the exchange cost
3 Go to a Western Union office and ask the same question as in 2 above. We have sent funds to refugees overseas. Surprisingly, the spread is a lot less than a high street money changer.
4 Do get the basic education and by all means open a demo account, but running a demo account does not equate to being a Forex trader.
5 Buy something on eBay or Amazon that is quoted in USD for delivery, and compare the exchange rate with that of a broker.

I recommend that anyone contemplating being a Forex trader does all five of the above before even thinking about Forex trading. This is real life experience of “numbers” and there is no substitute for being able to relate concepts of trading to real world experiences.

2 Likes
3

You need to know that you learn skills with experience. You can start with an education course to learn about the forex market and gain some experience. This will help you understand what you should focus on.

4

Your experience is the biggest tutor that will make you learn new skills as you move ahead. Every forex trader comes with a different mindset in the market. It is up to you what you want to achieve and set your goals accordingly. Based on the requirements of your goal you can also choose the skills that you want to learn.