If you are an experienced trader already who is looking at the potential of the forex market, or if you’re new to the whole industry but you think that it could be the life for you then you’ll probably want to get up and running with your first trades.
The forex market is an exciting environment where the tiniest of movements in the value of a currency can mean significant amounts are made and lost around the world just because of the huge volumes of the trades involved.
Before you leap in we advise you to get reading and absorb as much information about the market, and nature and sources of success as you can handle. Research your brokers and determine who you’ll work with. If you choose one of the bigger banks you’ll find they offer a wealth of information to help you get started. Much of the research freely available to their clients would have been the preserve of the best informed in the past, and it would have been closely guarded.
Also join the discussion groups and read the blogs to learn how to spot the trends in the market that may lead to successful trades for you. And learn about currencies themselves and the trends that global markets and government policy create. Remember that a strong domestic currency may make it great going on holiday as everything abroad seems cheaper, but it can spell disaster for an export economy and the central banks may fight to avoid it.
You could attend a learning seminar such as those run in London by Learningtrader. Learningtrader is an organisation that also offers tutorials and systems. A business called Ready.Trade offers an ebook that will take you through the basics on the market, including a comprehensive glossary. There are scores of glossaries available and it’s worth just printing one out and pinning it by the desk for the first few weeks as you get to grips with the new language of forex.
There’s so much help available there really is no need to rely on trial and (expensive) error.