Forex Training: A Complete Forex Taining Program | Forex Trading Resource

Forex Training: A Complete Forex Taining Program

Forex Training: A Complete Forex Taining Program

Should new Forex traders take Forex trading courses or join a Forex training program? Definitely yes; by now you have probably heard that only 5% of traders achieve consistent profitable results when trading the Forex market. The main reason for this is the lack of education. Don’t get me wrong here, taking a Forex training program or a Forex trading course won’t guarantee profitable results, nothing can, but choosing the right Forex training program or Forex trading course will definitely put the odds in your favor.


 


Before spending any amount of money on any Forex trading course or Forex training program there are some important aspects you need to take in consideration. There are many training programs available, but not every one of them suits the needs of every trader.


 


The first thing you should be looking in a Forex training program is the content of the material. Unfortunately, most courses or training programs focus or spend most of the time on basic concepts. Though these basic concepts are important, spending most of the course on them won’t help the trader to make consistent results.


 


The following subjects are what I consider the most important aspects of trading and every training program or trading course should address:


 


Forex trading basics.


Review basic concepts such as: margin, type of orders, a little background, bid/ask, rollover, etc. You need to make sure you understand every single concept to perfection. 


 


Main drawbacks of Forex traders.


Being aware of the common mistakes made by Forex traders and knowing how to handle them will prevent new traders from making those mistakes.


 


Technical and fundamental analysis.


These are the two main approaches adopted by Forex traders. Knowing how to properly apply each concept will definitely put the odds in your favor.


 


The three pillars of Forex trading. I consider that these three subjects have the most impact on every trader trading account.


 


Forex trading system development.


Having the right system is a must if you want to have consistent profitable results. Having a system that doesn’t fit you will cause a series of problems that will make your trading account vanish away (second guessing the system, not following your system, etc.)


 


Money management.


This is considered by many successful traders to be the most important single aspect of trading. Money management helps to increase your profits geometrically and at the same time limit your losses (i.e. a good risk reward ratio of about 2:1 will make you money in a Forex trading system that is right only 38% of the time.)


 


Trading psychology.


Being aware and knowing hot to handle the psychological barriers that affect every trader decision will put the odds in your favor.


 


Other important aspects every training program should include are:


Developing habits for success (such as discipline patience, taking responsibility of every action, commitment, etc.,) understanding and taking our trading as a business, risk and trade management.


 


Another important aspect you should take into consideration when choosing a Forex training program is the mechanics of it, getting to know how the training program works.


 


A good course will have the following:


 


A live conference room, where you can apply everything learned under live market conditions.


 


One-on-one feedback, every trader has different needs and requires special attention. For instance a trader wanting to improve the system and requires individual feedback from the instructor about it.


 


Online trading course, a course that could be accessible through internet. A plus is a course where you are able to access the course at the convenient time for you, so you don’t have to change your lifestyle.


 


A forum, where members can talk just about everything related to the Forex market and the Forex training program.


 


Trading the Forex market is no easy task. It requires a lot of hard work. Making the right decision will definitely put the odds in your favor. Take your time when doing your diligence because it is a big and important step in a trader’s trading career.


Also you can see the video related to forex training

From our live training room; we review a pattern in the British Pound, showing how the call in the live room as well as last weeks breakout lesson led to a big winner for 50+ pips. See how these breakout techniques and visual price pattern strategies can work for you, regardless of your market or time frame.Futures, Markets, E-mini, emini, stocks, forex, trading, analysts, analysis, 4x, FX, gold, silver, crude, picks, stock, cramer, bloomberg, technical, short, term, plays, calls, Dow, S&P …

Here some answer the question about forex training

Free and easy site for FOREX trading training (ABC)?
Please who can suggest a free,good and very simply site for learning FOREX trading training.I am a total greenhorn to FOREX.Has to be extremely easy to understand.
Thanks all.

About Author

Raul Lopez is a full time Forex trader and founder of http://www.straightforex.com a high quality Forex trading course provider.

June 12th, 2009 | Published by forex trading on Forex Training

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10 Responses to “Forex Training: A Complete Forex Taining Program”

  1. tradermav Says:
    June 12th, 2009 at 10:32 pm

    My favorite course is http://www.superforexsystem.com/, but you can look for this or any other course on reviews websites like http://www.forextopten.com/.

  2. cecilgamini Says:
    June 12th, 2009 at 10:43 pm

    I don't know about buying a forex training course when theres so many resources on forex online. Here are some of the sites that i use to teach me more about forex/sharetrading. The websites below have very helpful resources regarding currency trading & theyre all free! I've personally found them very useful in learning about forex trading and its sharetrading counterpart.

  3. smartforextrader Says:
    June 12th, 2009 at 10:49 pm

    Very nice video. Click on my account to see other free forex trading strategy course.

  4. Vegas5 Says:
    June 13th, 2009 at 12:15 am

    Nice one Wayne – who’d think that your could trade NFP relatively stress free!!!!
    Vin

  5. hisoka147 Says:
    June 13th, 2009 at 4:36 pm

    Some articles written in simple english that might be helpful for newbie:

    http://www.forex2u.com/forex-articles.html
    http://www.forex.labuan.net/
    http://www.118forex.com/

  6. None N Says:
    June 13th, 2009 at 7:07 pm

    The word FOREX is derived from Foreign Exchange and is the largest financial market in the world. Unlike many markets the FX market is open 24 hours per day and has an estimated $1.2 Trillion in turnover every day. This tremendous turnover is more than the combined turnover of all the wordls' stock markets on any given day. This tends to lead to a very liquid market and thus a desirable market to trade.
    Unlike many other securities (any financial instrument that can be traded) the FX market does not have a fixed exchange. It is primarily traded through banks, brokers, dealers, financial institutions and private individuals. Trades are executed through phone and increasingly through the Internet. It is only in the last few years that the smaller investor has been able to gain access to this market. Previously the large amounts of deposits required precluded the smaller investors. With the advent of the Internet and growing competition it is now easily in the reach of most investors.
    You will often hear the term INTERBANK discussed in FX terminology. This originally, as the name implies was simply banks and large institutions exchanging information about the current rate at which their clients or themselves were prepared to buy or sell a currency. INTER meaning between and Bank meaning deposit taking institutions normally made up of banks, large institution, brokers or even the government. The market has moved on to such a degree now that the term interbank now means anybody who is prepared to buy or sell a currency. It could be two individuals or your local travel agent offering to exchange Euros for US Dollars. You will however find that most of the brokers and banks use centralized feeds to insure reliability of quote. The quotes for Bid (buy) and Offer (sell) will all be from reliable sources. These quotes are normally made up of the top 300 or so large institutions. This insures that if they place an order on your behalf that the institutions they have placed the order with is capable of fulfilling the order.
    Now although we have spoken about orders being fulfilled, it is estimated that anywhere from 70%-90% of the FX market is speculative. In other words the person or institution that bought or sold the currency has no intention of actually taking delivery of the currency. Instead they were solely speculating on the movement of that particular currency.
    Source: Bank For International Settlements http://www.bis.org Extract From The Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity

    Currency19891992199519982001
    US Dollar9082.083.387.390.4
    Euro….37.6
    Japanese Yen2723.424.120.222.7
    Pound Sterling1513.69.411.013.2
    Swiss Franc108.47.37.16.1

    As you can see from the above table over 90% of all currencies are traded against the US Dollar. The four next most traded currencies are the Euro (EUR), Japanese Yen (JPY), Pound Sterling (GBP) and Swiss Franc(CHF). As currencies are traded in pairs and exchanged one for the other when traded, the rate at which they are exchanged is called the exchange rate. These four currencies traded against the US Dollar make up the majority of the market and are called major currencies or the majors.
    Market Mechanics
    So now we know that the FX market is the largest in the world and that your broker or institution that you are trading with is collecting quotes from a centralized feed or individual quotes comprising of interbank rates. So how are these quotes made up. Well, as we previously mentioned currencies are traded in pairs and are each assigned a symbol. For the Japanese Yen it is JPY, for the Pounds Sterling it is GBP, for Euro it is EUR and for the Swiss Frank it is CHF. So, EUR/USD would be Euro-Dollar pair. GBP/USD would be pounds Sterling-Dollar pair and USD/CHF would be Dollar-Swiss Franc pair and so on. You will always see the USD quoted first with few exceptions such as Pounds Sterling, EuroDollar, Australia Dollar and New Zealand Dollar. The first currency quoted is called the base currency. Have a look below for some example.
    Currency Symbol Currency Pair
    EUR/USDEuro / US Dollar
    GBP/USDPounds Sterling/ US Dollar
    USD/JPYUS Dollar / Japanese Yen
    USD/CHFUS Dollar / Swiss Franc
    USD/CADUS Dollar / Canadian Dollar
    AUD/USDAustralian Dollar / US Dollar
    NZD/USDNew Zealand Dollar / US Dollar
    When you see FX quotes you will actually see two numbers. The first number is called the bid and the second number is called the offer (sometimes called the ASK). If we use the EUR/USD as an example you might see 0.9950/0.9955 the first number 0.9950 is the bid price and is the price traders are prepared to buy Euros against the USD Dollar. The second number 0.9955 is the offer price and is the price traders are prepared to sell the Euro against the US Dollar. These quotes are sometimes abbreviated to the last two digits of the currency such as 50/55. Each broker has its own convention and some will quote the full number and others will show only the last two. You will also notice that there is a difference between the bid and the offer price and that is called the spread. For the four major currencies the spread is normally 5 give or take a pip (will explain pips later)
    To carry on from the symbol conventions and using our previous EUR quote of 0.9950 bid, that means that 1 Euro = 0.9950 US Dollars. In another example if we used the USD/CAD 1.4500 that would mean that 1 US Dollar = 1.4500 Canadian Dollars.
    The most common increment of currencies is the PIP. If the EUR/USD moves from 0.9550 to 0.9551 that is one Pip. A pip is the last decimal place of a quotation. The Pip or POINT as it is sometimes referred to depending on context is how we will measure our profit or loss.
    As each currency has its own value it is necessary to calculate the value of a pip for that particular currency. We also want a constant so we will assume that we want to convert everything to US Dollars. In currencies where the US Dollar is quoted first the calculation would be as follows.
    Example JPY rate of 116.73 (notice the JPY only goes to two decimal places, most of the other currencies have four decimal places)
    In the case of the JPY 1 pip would be .01 therefore
    USD/JPY: (.01 divided by exchange rate = pip value) so .01/116.73=0.0000856 it looks like a big number but later we will discuss lot (contract) size.
    USD/CHF: (.0001 divided by exchange rate = pip value) so .0001/1.4840 = 0.0000673
    USD/CAD: (.0001 divided by exchange rate = pip value) so .0001/1.5223 = 0.0001522
    In the case where the US Dollar is not quoted first and we want to get to the US Dollar value we have to add one more step.
    EUR/USD: (0.0001 divided by exchange rate = pip value) so .0001/0.9887 = EUR 0.0001011 but we want to get back to US Dollars so we add another little calculation which is EUR X Exchange rate so 0.0001011 X 0.9887 = 0.0000999 when rounded up it would be 0.0001.
    GBP/USD: (0.0001 divided by exchange rate = pip value) so 0.0001/1.5506 = GBP 0.0000644 but we want to get back to US Dollars so we add another little calculation which is GBP X Exchange rate so 0.0000644 X 1.5506 = 0.0000998 when rounded up it would be 0.0001.
    By this time you might be rolling your eyes back and thinking do I really need to work all this out and the answer is no. Nearly all the brokers you will deal with will work all this out for you. They may have slightly different conventions but it is all done automatically. It is good however for you to know how they work it out. In the next section we will be discussing how these seemingly insignificant amounts can add up.
    More On Market Mechanics
    Spot Forex is traditionally traded in lots also referred to as contracts. The standard size for a lot is $100,000. In the last few years a mini lot size has been introduced of $10,000 and this again may change in the years to come. As we mentioned on the previous page currencies are measured in pips, which is the smallest increment of that currency. To take advantage of these tiny increments it is desirable to trade large amounts of a particular currency in order to see any significant profit or loss. We shall cover leverage later but for the time being let's assume we will be using $100,000 lot size. We will now recalculate some examples to see how it effects the pip value.
    USD/JPY at an exchange rate of 116.73
    (.01/116.73) X $100,000 = $8.56 per pip
    USD/CHF at an exchange rate of 1.4840
    (0.0001/1.4840) X $100,000 = $6.73 per pip
    In cases where the US Dollar is not quoted first the formula is slightly different.
    EUR/USD at an exchange rate of 0.9887
    (0.0001/ 0.9887) X EUR 100,000 = EUR 10.11 to get back to US Dollars we add a further step
    EUR 10.11 X Exchange rate which looks like EUR 10.11 X 0.9887 = $9.9957 rounded up will be $10 per pip.
    GBP/USD at an exchange rate of 1.5506
    (0.0001/1.5506) X GBP 100,000 = GBP 6.44 to get back to US Dollars we add a further step
    GBP 6.44 X Exchange rate which looks like GBP 6.44 X 1.5506 = $9.9858864 rounded up will be $10 per pip.
    As we said earlier your broker may have a different convention for calculating pip value relative to lot size but however they do it they will be able to tell you what the pip value for the currency you are trading is at that particular time. Remember that as the market moves so will the pip value depending on what currency you trade.
    So now we know how to calculate pip value lets have a look at how you work out your profit or loss. Let's assume you want to buy US Dollars and Sell Japanese Yen. The rate you are quoted is 116.70/116.75 because you are buying the US you will be working on the 116.75, the rate at which traders are prepared to sell. So you buy 1 lot of $100,000 at 116.75. A few hours later the price moves to 116.95 and you decide to close your trade. You ask for a new quote and are quoted 116.95/117.00 as you are now closing your trade and you initially bought to enter the trade you now sell

  7. OldYoungGEnius Says:
    June 14th, 2009 at 9:54 am

    It is both. I would still saying the same things about robot, NO robot can consistently beat the market in the long run. Learn forex trading the hard way and you will gain from it.

  8. murcata_bg Says:
    June 14th, 2009 at 11:29 am

    Well, I didn't know too much a couple of months ago when i started in forex, i used a software that actually do the trades for me, maybe you cannot find it in some torrent because it's a personal password, you have to download it directly from the site http://www.robot4trade.com you can do an effort and buy it, it worth the price, it cost me $99.00 dlls when it was in back-testing, i heard the price is going up because of the excellent results, i fully recommend it to you and anyone

    have a good day!

  9. zagy w Says:
    June 15th, 2009 at 2:58 am

    You can probably look for on a reviews website and read what people think about each software.
    For Forex I personally like Supra Forex.

  10. Scooter Says:
    June 16th, 2009 at 7:53 am

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