Online trading is a good way for serious investors to make money, but traders who don't know what they're doing often lose a lot of money. A good set of instructions can reduce the risks and save months of expensive trial-and-error learning.
Day Trading
During the bull market of the 1990s, day trading was at its peak. Since then, all the amateurs have stopped day trading, but professionals still do it. In the current market, there are fewer opportunities, but investors who know what to look for can still find them.
FOREX Trading
In 1973, the Foreign Exchange Market (FOREX), which is the biggest financial exchange market in the world, began. It changes hands every day with money worth more than $1.2 trillion.
Unlike many other securities, FOREX doesn't have a fixed exchange rate. Instead, currencies are mostly traded between central banks, commercial banks, non-banking international corporations, hedge funds, individual investors, and not to forget, speculators. Before, small investors couldn't take part in FOREX because the deposits were so high. This changed in 1995, and now smaller investors can trade along with the big companies. Because of this, the number of traders in the FOREX market has grown quickly, and there are now a lot of FOREX courses to help traders improve their skills.
In fact, you should get FOREX training even before you open a trading account.
It is important to understand how the FOREX market works, how leverage works in FOREX, how rollovers work, and how to analyse the FOREX market. Because of this, people who want to trade FOREX would do well to take a FOREX training course or buy some books about FOREX trading.
There are both good and bad things about taking a FOREX course. A FOREX course is a quick way for new traders to learn the basics of FOREX trading. History of the market and complicated economic theories don't get a lot of attention. A skilled FOREX trader is usually available online or by phone to answer any questions. Also, the information is brief and useful, and graphs and charts are often used.
The price is a drawback, since a course costs more than a paperback book from a bookstore. Also,
The course may only teach the trader who wrote it how to trade, and everyone has their own way of doing things. The student may get used to the teacher's logic and focus without realising that nothing can be predicted on the FOREX market and that many different strategies will work in different market situations. Also, knowing how things work in the real world may not be enough because the FOREX is very unpredictable and the flow of money on the market is affected by many outside factors, like political issues.
The best advice would be to first learn more about the FOREX market and then sign up for a class.
