Introduction
Forex trading, popularly known as FX, is not a new phenomenon. But the advent of online forex trading has made it much easier than it was before.
Over the past few years, there have been numerous discussions on social media around the subject of forex trading. Lots of people have narrated stories on how they went from rags to riches in no time and they attribute this to forex trading. While these stories are captivating and often inspiring, one should not just jump blindly into it.
So is forex trading a legitimately rewarding investment venture or is it a scam?
This article will unveil how to tell apart the legitimate forex trading from scams and help you become an overall successful forex trader.
What is forex trading?
At the most basic level, forex trading can be defined as the buying and selling of different currencies. As a matter of fact, the word forex is a combination of two words – foreign and exchange which basically means the trading one currency for another. There are two main reasons why people participate in forex trading:
- When one travels to a foreign country and they need to acquire money in a currency that is acceptable in that country.
- When the person wants to make a profit by exploiting the difference in value between the two currencies which changes from time to time.
Our main focus for this article will revolve around the second point which is forex trading as an investment.
How to become a successful forex trader.
Lots of experienced traders will encourage you to read widely on the subject; and rightfully so. It is important to note that forex trading involves using real money which could easily be lost if the trader is not well prepared.
There is a lot of content on the internet and sometimes it easy to stumble upon information that may not be accurate. If you do not have any experience with trading, you will need to follow the steps below:
- Take the time to deeply understand the basics what forex trading entails (by attending free forex webinars for beginners).
- Read reviews about different brokerage firms and find one that suits you. Keep in mind that different countries have different regulations so make sure the broker you choose is compliant.
- Take time to learn and familiarize yourself with the trading platform offered by the broker you choose.
- Decide which instruments (currencies or commodities) you would like to trade in and begin trading on a practice account using virtual money.
- Once you have developed a consistently successful trading strategy, you can start trading on a live/real account using actual money. Remember to use proper risk management.
Free Forex Webinars
Forex trading is a skill so in order to become a successful forex trader you need to understand exactly what forex trading entails. You can choose to read about it online or you can also choose to attend forex webinars. More often than not they are free webinars hosted by trading platform providers (brokers) or other financial analysis websites forex webinars for beginners are very good platforms to learn about forex trading because they are usually interactive sessions. In some cases, it happens just like in a classroom setup where the facilitator gives listeners the chance to ask questions and seek clarity on issues that they may not have understood.
Some brokers offer webinars in the form of live trading rooms where an experienced trader takes beginners through the trading process in real time. In addition to this, the forex webinars can cover areas such as platform functionality, risk management, trading strategies, fundamental and economic news analysis These trading webinars are usually stored in a video library for future reference in case the students want to access them later.
At the end of the day becoming a successful forex trader is not an easy task or one that can be achieved instantly. It takes time and practice to cultivate the mindset of a winning forex trader. However, continuously attending such forex webinars that demystify the many misconceptions will sharpen your mind and make better trader.
