Do you ever wonder how long it might take you to learn to trade forex? Many are attracted to the idea of foreign exchange currencies but shy away because they think the learning curve is too long or just because they just aren’t sure how complex or risky it might be.The good news is that it doesn’t take very long to learn the basics, open an account, and get busy buying and selling currency pairs.
The only variable is your desire to stick to a plan. Some people dive in quickly, read everything they can get their hands on, open accounts, and start trading in just a week or so. Others like to absorb information more slowly and approach the activity in a methodical way. For that group, a one-month timeframe is usually what it takes to get started. No matter how you approach the situation, there are several fundamental steps along the way.
Learn the Language
Step one is to help answer the questionwhat is forex trading? In other words, you must learn the language of buying and selling foreign currency pairs. Fortunately, the better brokerage platforms have comprehensive educational materials so you don’t get stuck having to buy a stack of books or pay for online tutorials.Learn the language of forex because it’s quite different from standard market lingo. Instead of shares you’ll be trading pairs, and in place of stock, you’re dealing with national currencies. Spend a few hours acquainting yourself with the specific terminology of forex trading before moving on to the next step.
Find a Reliable Broker
As important as learning the language of foreign exchange is finding a reputable broker. There are many brokerage firms on the internet, but few meet the basic requirements of longevity, honesty, reliability, and low-cost of account setup. Be sure to ask plenty of questions as you check out the various platforms to find what’s best for you. The goal is to identify one that is easy to use, offers great educational resources, and caters to newcomers.
Make Practice Trades
Once you’re set up with a brokerage platform, use the site’s simulator to make several practice trades. You can do this in a number of ways. Some new account holders prefer to spend two or three entire session days on the simulator. Using fake money, you make fictitious buys of various pairs. While it’s hard for a simulator to create the exact atmosphere of real action, you will learn how to place orders, manage them in real-time, and get out of a position at the right time. Then, when you start using your own funds, you’ll be less apt to make technical errors like clicking the wrong button when buying or selling.
Begin with Small Trades
The final guideline is much harder to follow than you might think. It’s a forex version of starting small. In other words, don’t get comfortable making large deals while you’re still in the first six months of your training period.