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Online trading is a great way for serious investors to make money, but inexperienced traders often end up with big losses. A good set of instructions can minimize risk and save months of expensive trial-and-error learning.
DayTrade?
Day trading had its heyday during the bull market of the 1990s. All the amateurs have quit since then, but day trading is still practiced by professionals. There are fewer opportunities in today’s market, but skilled investors can still find them if they know what to look for.
FOREX Trading
The Foreign Exchange Market (FOREX), the world’s largest foreign exchange market, originated in 1973. It has a daily foreign exchange volume worth over 1.2 trillion dollars.
Unlike many other securities, FOREX does not trade with a fixed exchange rate; instead, currencies are traded primarily between central banks, commercial banks, various international non-banking companies, hedge funds, personal investors and, not to forget, speculators. Previously, retail investors were excluded from FOREX because of the huge amount of deposits involved. This was changed in 1995, and now smaller investors can trade alongside the multinationals. As a result, the number of traders within the FOREX market has grown rapidly, and many FOREX courses are appearing to help individual traders increase their skills.
In fact, it is advisable to take FOREX training even before opening a trading account.
It is vital to know the mechanics of the FOREX market, leverage in FOREX, rollovers, and the analysis of the FOREX market. Due to this fact, potential FOREX traders would do well to enroll in a FOREX training course or even buy some books regarding FOREX trading.
There are pros and cons to enrolling in a FOREX course. For beginners, a FOREX course is a quick method of learning the basics of FOREX trading. Not much time is spent on market history or arcane economic theories. Often, online or telephone support from an expert FOREX trader is available to answer any questions. In addition, the information is condensed and practical, often with charts and graphs.
The downside is the price, as the courses are more expensive than a paperback from the bookstore. Also,
the course may only teach the approach of the trader who wrote it, and individuals have different trading strategies. The student may get used to the teacher’s logic and focus without realizing that nothing is predictable in the FOREX market, and many different strategies will bring profits in different market circumstances. Also, knowledge of the practical applications may not be sufficient, as FOREX is highly unpredictable and there are many external factors, such as political issues, that affect the flow of finances in the market.
