How important is forex education?

The professional way in every aspect of life lies through education and that’s the case with forex trading too.Forex trading education is important because as simple as it is to get in and out of the forex market these days it’s still a serious matter that requires knowledge. Can we become successful traders without forex education?

Very important Rambo35

Any forex trader goes through an education process in one way or another.
Some traders jump in to the “Forex-waters” straight away and only then learn to “swim”.
Some traders don’t open a real account until they fully understand the meaning of each price move.
Which one is better - it is a question open for debates :slight_smile:

Based on my personal experience (which is more than 7 years of Forex trading) - I strongly recommend to look for some education (it will save you some time and money). BUT! -> [B]Very important:[/B] I advice to go ONLY for those Forex trainings - where after getting some theory basics - you will get a practical training based on provided theory. The longer is the practical training - the better. That way you will have an opportunity to “feel” possible problems and get practical help from a PRO that uses this theory in his own day by day trading.

I think it is crucial as you need to pour a solid foundation before you can move forward. Too many traders (you can see by questions asked in this forum alone AFTER they placed trades) enter trading without any knowledge and find out rather soon that it is not as easy as advertised by some bucket-shop outlet.

Using your life example, like most things. Forex breaks down to things you make sure to do, things you should make sure you never do and things you might do or not do, depending on the circumstances. When its time to decide from: maybe yes, maybe no or depends, you want to gather as many relevant facts as you can look at as many options as you can, then pick the least of the evils. For you to be able to do that you need knowledge which you get from educating yourself.

This is where a lot of traders fall down. They make decisions but don’t look at all the facts or options. Buy low;Sell hi, trade the trend, proper money management, proper mindset. tech analysis, fundamental analysis, Sentiment. Before you can decide any of that you need to have information (facts) to know all your options and then be able to pick the least of the evils. Like MS Shark said everyone is different and all traders have to understand that. There almost always different approaches to success and forex is no different. Educate yourself so you can go with whatever approach works for you the best. Once again Great Topic Rambo

Ofcourse you need an education and atleast basic knowledeges…unless u have a special talent to see the future:33:

O trust me, I see forex education as 50% of the reasons to success, 10% is patience 10% dedication 10% hard work and the rest goes to lady luck! :smiley: but seriously ofcourse its really important, why would you gamble your money on something that you dont know anything about! when you study and learn it, it wont be gambling no more!

An education in a field is priceless.

Currency is an asset class like stocks or housing. If you choose to invest in it you must not only be educated in the subject you must be versed in investment strategy and related markets as this will impact your chosen asset class.

So in my opinion currency may be easier to access as an asset class because of liquidity but requires more knowledge than any other asset class simply because it underpins all other asset classes.

There is also a problem: the WRONG education!

Going on websites is fine but if all they tell you is that it is enough to just draw lines on a chart, stick a couple of indicators

on, and go live to make money in Forex, then it is actually a BAD education…

The best way would be to get to know someone who traded successfully (by which I do not necessarily mean that they

were millionaires, just that they traded profitably, no matter how relatively large or small their account was) and ask

them to sit down with us to show us what were the ‘good’ things and to filter out the ‘bad’ things, because even though

there is no RIGHT way of trading, or rather, there is MORE THAN ONE RIGHT WAY (depending on which trading style

suits your situation best), there certainly are a number of BAD ways to trade, and someone who had experience and

a good track record, with a good understanding of market forces and fundamentals from a trading perspective, could

certainly help a newbie a thousand times more than reading lots of books (with sometimes contradicting information)

and cut their learning time by quite a margin.

Sadly, a LOT of us here, and elsewhere, are starting our learning in all the wrong ways, getting fixated on indicators

and tech analysis, clicking Buy and Sell without understanding concepts like capital flow, COT reports, market sentiment,

risk trends, central bank intervention, and so on… I wish, oh I wish, that Santa gave me a good, honest, and successful

trader for Christmas, all for myself, to sit down at the desk with me and go through all the fundamentals of market

trading from the beginning, and cut away all the bad trading that I probably do…

You could even say that you could be trading the WRONG way if you were PROFITABLE, because if you had the

‘right’ education you could not only be profitable, but probably twice as much, over time… Sometimes if we

do not have a means of comparison or a sounding board for our trading decisions (other than the lonely journaling

that we (may) do, or these forums) we may well get into bad habits… Just like driving a car badly but thinking that

we were good drivers SIMPLY BECAUSE WE HAD SO MANY ACCIDENT-FREE YEARS would not prove anything if we

drove in an accident-prone way but it was just sheer luck that kept us out of danger… We could go on trading thinking

that we educated ourselves the ‘right’ way, and, worse, give BAD ADVICE to newer traders, on the basis that we made,

say, 10% yearly profits consistently…

There you go, just some thoughts…

Getting professional education will save any newbie the cost of the training course many times over. However, there is nothing that can prepare you for the emotions of trading a live account. You can only learn some things by getting stuck in but you do need a base to start from. Forex takes years to learn whichever way you look at it.

Totally agree with you PipMeHappy.

I would add also (if I may): Sometimes a PRO trader can be successful based on the approach that he uses. But For newbie the same approach would be a suicide without knowing every detail. Often the way newbie understands the theory and the way he has to use it in real trading - is completely different. Therefore it is very important not only read the theory of some training course - but to be able to see how this theory is used in “real life” by this PRO trader. My opinion, the longer is the practice period of some training course - the more valuable it is.

PipMeHappy - would you have any links or contacts of traders or organizations that can provide such training? I provided as an example one link in my earlier post - but it is always interesting to find out about other profitable approaches. I think a PRO trader never stops to learn :slight_smile:

Hello MFShark… Sadly the answer to your question is ‘no’: I trade by myself, for myself, and it is a lonely business…

BabyPips provides my only socialising opportunity for exchanging ideas and concerns with other traders, as even my

partner does not want to know or talk about trading… My sister has started trading a demo account in shares but

she is six hours’ drive away and we rarely see each other…

I am sorry but I really cannot help you…

Forex education is here this site, and very important. Of course, there are so many ways to learn these days choose one it is best for you.

Quite right pipme.

Retail trading (secondary market) only exists to make the banks (primary market) money. They do need people to sell to otherwise banks will all end up like the cooperative.

So most of the education out there is really down to you. I think someone posted a video around here on Anton Kreil who gives a very interesting but negative view of investment banking traders (not real traders imo) but sadly he was perfect and like many who actually new how to trade before joining a bank and teaching them to trade, he left and now trades independently. Indeed all the new traders are plugged into HFT systems and screwing each other up and maybe rarely actually trading anything at all in the secondary market so there professional experience is limited.

To come back to the initial point… Pip is right in saying most people start trading the wrong way. The best idea is to start practicing and reading books on the subject of trading and finance in general especially with a closer look at primary markets i.e. how institutions introduce these products and their reasons. You will also come across specialist operators who have the ability to move the market, these are usually attached to major banks and disguised as funds. This will help a lot with your approach to price action and volume in markets.

You can then spend some time about reading on the relationship between different secondary markets i.e. in equities, currency, bonds, commodities, etc. Understanding these relationships will probably mean you can enter the market without drawing a single line on a chart. After that you have very solid grounding the rest is really about comparing relationships between price at different levels, associated volume and also what capital is doing in different parts of the world at different times and of course economic releases which really have no bearing on actual price but the market makers usually use these releases to distribute (sell to you) accumulate (buy from you) and they like to do this at relatively extremely low or high levels. IMO the GDP, Unemployment , CPI, Housing and Interest rate figures are the only figures that will affect an asset long-term as they all relate to real growth in the economy.

This I hope is a guide to your education path at this point you can treat speculation like you would treat buying house after all by buying a home we are gambling that it is the right price and it will serve as a long-term store of value.

It is very important to have the right education about forex trading before you start trading real accounts and with real money. You need to have professional approach towards this business also you should try demo first before you go real and see what works for you and what doesn’t. And after you feel all is well and you can become a profitable trader then only you should go real.

Also, it may be worth mentioning that a knowledge of other asset classes should be in the toolbox of all forex traders, as a broader knowledge of what the market is doing as a whole may be better than having your head stuck in forex charts all day - especially if you are looking more widely at what capital flows and investor sentiment are doing …

I get the feeling that putting all of one’s eggs in the Forex basket may be limiting… Sometimes I wondered if I should have done an economics degree and learnt about all asset classes… Then again, trading with leverage is not a luxury that other asset classes may offer, which is why Forex is so popular in the small-capital retail world…

Well, perhaps it is ok to ‘just’ chew Forex and nothing else… But certainly I feel it limiting not to eventually start peering over the parapet at the wider movements in the other asset classes across the surrounding fields…

A little bit like fixing the electrics of a house without knowing that you are on a flood plain and you are in for some sparkling times in just a few days… bzzt it could be a very short-sighted way about things…

Hmmm… looks deeply into his soul

PipMe, we just witnessed how the admins deal with ‘advertising’ - they simply wipe the thread.

So the amount of energy that some of us just expended in trying to show to learner traders how they can be deceived was for nothing.

The post above yours is text book posting by those who are in business to gain more ‘clients’, the thread title is big time important, but a large part of that education is to be aware of how some players in this game operate.

I hope that you got the ‘handbook’ link before they wiped it, if not then I’ll post it again under this thread since it is part of ‘education’

Mr. Pete,

Yep, I was about to reply to you about the link then I’ve lost it. It’s very good reference on how this “Exness” operate. Feel free to repost so everyone can see it , get educated and spot them to avoid them… Thanks

Oh, also PNR if you happen to read this, I am not really that quick, it’s just this light thing, I really cannot think of it’s name, but it’s attached to my computer.

Lol…speed of lightning? That’s awesome lol… Bionic woman is kinda too slow, might switch to Wonder Woman instead because she always " wonder around" lol

Aha, PNR, I suspect that maybe you are already a Wonder Woman, and Buíochas le Dia for that.

Back to education, the focus of this site, sometimes Admins need to see further in how to ‘protect’ or ‘educate’ learner traders.

I know it is easy just to hit the wipe button, but there comes times that they could look a little closer to what their own members are trying to do, so thank you to PipNRoll and to PipMeHappy in both you efforts to share and help.

Now to the link - I had guessed, from my limited experience of this industry, that the ‘handbook’ of those who wish to make use of learners would say… my guess it seems was inspired:

I would suggest that this would be a common guide that others use.