Teachers and parents all over the world often talk about the importance of having a good education, and for most things we do in life it’s probably true. But when it comes to online Forex trading, it’s absolutely true.
With the ability for anyone with an internet connection to be able to trade in any market in the world, online Forex trading can seem an attractive prospect for earning a little bit of extra money. But that freedom to trade instantly with the click of a button also carries a lot of risk if you don’t know what you’re doing. You can lose money just as fast as you make it – probably even faster. In fact, taking part in online Forex trading without doing your homework could be seen as little more than a bad gamble. To be successful in online Forex trading, the message is clear: do your homework.
Fortunately, the ability to trade Forex online also means we have online access to plenty of resources where you can learn how to trade. You can discover the ins and outs of online Forex trading in many ways; forums, tutorials, webinars, infographics – there’s guaranteed to be a resource to suit the way you like to learn. Even the complete novice should quickly find that strange trading terms like Pips, Leverage, Spreads and ‘Going Long’ will become very familiar.
Once you’ve understood the basics and want to give trading a go, you can find demo accounts provided by established brokers that are extremely useful for helping newcomers learn to trade Forex online. These demo accounts should be free to download and not require any up-front payment. The idea behind them is that you’re given access to the same software and systems global traders use, but the broker will give you what is effectively ‘practice money’. This lets you trade in real-time and get the hang of how online Forex trading works, but without having to put any real money down. That means there’s no real risk to you.
And if you find that you’re comfortable with the way you’ve been trading in your demo account (i.e. trading successfully and earning more practice money), your broker will be able to switch you to a live account where you then can deposit your own real funds to use. If you do decide to move onto a live account, you should be sure the broker you use is able to provide all the support and features that you’re after. These are things like the platforms/devices you can trade on, fee/commission structures, customer support, etc (you should start to discover which of things these are important to the way you trade once you’re using a demo account).
The important thing to remember about online Forex trading – whether on a demo account or with real funds – is that you’re in complete control of your actions. If you want to invest, you can. If you don’t want to invest, you don’t. Every time you trade Forex, it’s up to you to decide whether it’s worth it. But above all, if you’re interested in Forex trading one thing is for certain; the best place to start is by getting yourself an education.