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Uploaded by: euinvest100 on Jun 3, 2012
Shaan Stevens -Getting a forex trading education
I am always amazed that I hear about so many aspiring forex traders just wanting to jump into forex trading with no forex trading education. I admit that it's difficult to be patient and learn about something, when every advertisement that you see for it, pushes the idea of easy money. A forex trading education can help you protect your trading capital. It's tempting to rush in and try to make money, but it's not wise.
You may wonder, what exactly is it that you need to know before you actually make trades?
There is quite a bit of forex terminology floating around out there, and before you can even start reading forex educational materials, you'll need to understand the terms that will be used in them. On this site you can find that information in the forex glossary.
There are some pretty important questions that you should be asking before you even make your first demo trade.
What is a currency pair?
What is trading on margin?
What is a pip?
What are the best forex trading times?
What does it mean to drawdown?
What is a stop loss order?
What is a forex spread?
What is a margin call?
What is forex risk management?
These are some questions that you'll need to know the answers to before you even try to trade for the first time.
Forex trading education is important because as simple as it is to get in and out of markets these days, it's still a serious matter that requires thought and know how. Things are not always as easy as they look, and this industry tends to make things look so easy that people end up trading away money that they cannot afford to lose.
Take the time and get educated. Forex trading is similar to having a skilled job. You need to understand what you're doing and practice at it. There is no free lunch. In fact, if you don't take the time to get a forex trading education, you might get the most expensive lunc