Training is very important in any business venture because, to a large extent, it determines whether the business will experience success or failure. When talking about training, it is also vital that we know who can give training or be in the best position to provide the necessary tools and the training we need per each occasion. The best way to choose who to train with; is to access and evaluate the results of the training institution or trader trainer. Foreign exchange training helps traders to assess when to open a position on a given currency pair based on the direction it is heading and also be able to adequately forecast its direction for the near future. Experience and training are key factors to achieve success in foreign exchange trading. Continuous learning enables traders to stay updated and be profitable in the business. To get started on an effective training program, traders must be prepared to move from the basic concepts into more complex foreign exchange trading strategies. The following training tools can also be useful:
- Video tutorials;
- Foreign exchange daily/weekly outlooks;
- Economic indicators;
- Seminars and courses;
- Foreign exchange books;
- Internet forums/blogs.
Charts: They can be bar charts, line charts or Japanese candlesticks. It is important to understand how to identify the open, high, low and closing prices of the trading sessions represented in a given chart. There are time frames upon which we can view charts and the charts represent the price action history for the specified time frame.
Video tutorials: This particular training tool is my favorite choice because it is interactive and enhances learning. You can watch video classes online or download them to your personal computer and enter the classes as often as you want. The use of downloaded video classes enables you to learn at your pace and at convenient times of the day.
Tours: There are guided tours online, demos and tutorials for different internet platforms.
News: Stay alert on key world economic and political news. It is important to correlate the news with how it affects world currency markets. Negative news will impact negatively on the strength of a given currency representing the region where the news is focused on.
Foreign exchange daily/weekly outlooks: Daily outlooks help to give an overview of expected currency directions/moves for the day. Such information can help a trader to identify set patterns reoccurring without interference from economic news and world events.
Forecasts: Independent research organizations provide information and forecasts. This is so traders can prepare and plan ahead with the forecast information in mind. This is similar to weather forecasts, if there is a forecast that there will be a rainy day, we go out with umbrella and jackets ready for the rain. A currency price action forecast can help traders position for profitable trading.
Indices: It is good practice to learn about indices of leading economic markets and how the opening and closing value of an index affects the foreign exchange markets. Examples of such indices are Dow Jones, NASDAQ, Nikkei, etc. Compare them to the fluctuations on currency markets and price action movements in certain currency pairs.
Economic indicators: The release of key economic indicators from certain countries has a strong impact on the movements of such county’s currencies. Examples include GDP figures and interest rate changes.
Glossaries: A new trader needs to learn terms and concepts that are peculiar to the foreign exchange market. Glossaries of terms are available online and in foreign exchange trading e- books to help enhance the learning process for new traders.
Seminars and courses: There are quite a number of brokers and investment houses that provide trading seminars and courses to clients and prospective customers. Many of these webinars and seminars are highly instructive and educative for currency traders. Online platforms have provisions to access and download past webinars which you can watch at convenient times for you.
Foreign exchange books: There are lots of books that have been published about foreign exchange trading. There are e-books available for downloads and paperback editions for purchase from bookstores. It is good idea to get your hands on these materials and enhance your learning experience.
Internet forums/blogs: These tools serve as interactive classes where you post your questions and receive answers or get feedback regarding the business of trading currencies. Internet forums are like attending classes where the subject is the major focus in each class. In such forums you can learn about support and resistance, levels, stop losses, trailing stop loss and more.
It is important to note that your learning experience must not follow what is written here in order of sequence since our learning preferences differ from one to another. Some people like getting started with video tutorials; some attend live classes while others do great using internet forums.