Forex School – 1st Lesson
Here in the online forex school of forexwonders.com you find a carefully assembled, understandable course of study. Of course, online forex is serious, on the market every trader risks his/her own money. Forex trade requires knowledge and skills. You can get this knowledge with the help of forex lessons. In the process of composition of the curriculum, the most important viewpoint was that the lessons have to be easily understandable for those people who don’t have economic skills. Every lesson of forex school is free.
What is Forex?
The forex (fx) is the shortened form of foreign exchange. Besides this, it also means that sellers and buyers trading in the market. The trading doesn’t have headquarters. All the market participants connect to the same forex market. On the global forex market all the foreign currencies of the countries are presented. Trading runs from monday to friday, 24 hours a day.
Who is a trader?
The trader is the person who appears in the forex market as a buyer or a seller. Usually, the forex trader tries to make profit from short-term trends. The good trader doesn’t try to indicate the short-term exchange rate movements in advance, only follows it. The investors can trade with shares, bonds, derivatives, foreign currencies and other instruments. It is important to mention, because currency trading is not for everybody. Of course, individuals have the chance to start forex trading. The investors can trade wherever, if they have internet connection. Usually, individuals trading from home.
Forex trading involves high risk. Despite this, more and more people try to make income with the help of currency trading. Before starting with a greater capital, you have to get the proper knowledge, because on the market you can not only win, but also loose. Those who are trading without secure skills are surely loose in the long run. After years of experience, the most profitable traders are also continuously train themselves. Anybody can say anything, this is the method which reduces risk the most. In the forex business, the secret of success is to be well-prepared.
The 3+1 most important factors
If you want to be successful in the forex market, you have to gain a high level of knowledge in 3 themes: stock market psychology, risk management and technical analysis.
The technical analysis helps traders to make the proper decisions. The most important tasks are to establish the trend direction and timing position opening/position closing. After learning this theme, you can make an active forex strategy independently. Starting from the 4th lesson, the Forex School deals only with technical analysis.
The aim of speculator is to achieve greater profit, besides the lowest possible risk. The greater profit always involves higher risk, but risk measurement can be controlled. The point is: if you win, then win a lot and if you loose, then loose little. The 3rd lesson of the Forex School deals with the risk management in detail.
When you learned the art of technical analysis and developed well-functioning forex strategy and besides these, you are aware of the risk management techniques, you have only one task: to strictly adhere to the learning acquirements. You have to be a disciplined trader who don’t be frivolous because of successful series, and don’t be disrupted because of unsuccessful series. In this helps you the market psychology. You can read further about this theme in the 2nd lesson of Forex School.
Many beginner trader think wrongly that in the process of trading, the most important viewpoint is the proper forex strategy, but it’s not true. The correct priorization is the following: 50% market psychology, 40% risk management, 10% forex strategy.
Trusted forex broker selection
This is that point of view which no one talks about. However, this is more important then the previous 3 standpoints altogether. When you are ready to trade, you have to choose a trusted forex broker and it’s significant which one to choose. You find useful information in the menu of Best Forex Brokers about the selection of the reliable forex broker.