If you are looking for how to learn forex for free and be profitable, then read through this short guide, but before we continue, kindly download a free PDF on How to trade synthetic indices and make money by clicking here.
Table of Contents
How to Learn Forex For Free and Be Profitable
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What is Forex?
Forex or Foreign exchange is the largest and most liquid asset market in the World for exchanging National Currencies. In the forex market, currencies are traded against each other in a combination call pairs. You can either buy or sell a currency via a pair. We have major pairs, minor pairs and exotic pairs.
To trade in the forex market, you have to go through a broker, every broker has a platform that works either with Meta Trader 4, Meta Trader 5 or any other trading platform to make your trading journey easier.
How to Start Forex Trading
One of key thing in the journey of learning how to learn forex for free and be profitable is understanding how to start forex trading with the right foundation and knowledge.
Starting forex with the right foundation is very Important. This is what I recommend when you are planning to start forex trading:
Find out if Forex is right for you
If you see an opportunity and you wish to invest in it; first, you need to study the opportunity, compare the risk involve then decide if the opportunity is right for you. Just like every other opportunities, Forex is a very big market with so many stories. Most people make their living from forex, while many others lose their living in forex.
You have to ask yourself some key questions, before taking the first step. These questions can include:
- What is your training needs?
- What is your risk appetite?
- How will you raise your trading capital?
- What are your trading goals, etc.,
The answer to these questions will decide if forex is right for you or not.
Develop a Learning Template based on your training needs
Most people come across forex trading maybe during a search for “How to Make Money online” and they are captivated by the stories of how a certain trader raise $50 to $10,000 in just a week and they want to emulate the success story.
While it is very possible to raise $50 to $10,000 in just a week, it is not always easy. Before you can get that stage you need a certain level of mastery and some level of LUCK… LUCK here means Learning, Understanding Chart analysis and Knowing when to enter and exit the market.
You have to come up with a trading Template to satisfy your training needs, your trading template can cover:
- How to Open a Forex Account (if you don’t have one)
- How to Open a demo account
- What are Forex strategy?
- How Can I develop a winning Forex Trading Strategy
- What are the best forex pairs to trade?
- Best risk management strategies in forex
- How to Understand forex market structure
- How to Understand technical and fundamental analysis
- What is price action?, etc.,
Then Look at possible platforms you can get this knowledge from. The platform I personally recommends are babypips.com and YouTube. Babypips has a comprehensive portfolio on forex trading, while YouTube has a great number of experienced and upcoming forex traders who are sharing their knowledge and experience for free.
Develop a Learning Calendar and Start Learning
Based on your training template, get a trading diary or journal to document and monitor your learning journey. The trading dairy will document your training needs, gaps and progress. Please make sure you open a Demo account to experiment what you learnt; manage the demo as you will manage your real account, it’s the result of this trainings and experiment that will decide your next step in the forex market.
Learn, Experiment, un-learn, and re-learn
You have to study to know, then experiment with your demo to understand what works, un-learn what does not work and keep pushing with your Demo account until you develop a profitable strategy before testing it on your real account.
Do not be in a haste to make money in the forex market, understand the market first then making money will become very easy.
If you have any questions, kindly share them in the comment section.
Deriv offers complex derivatives, such as options and contracts for difference (“CFDs”). These products may not be suitable for all clients, and trading them puts you at risk. Please make sure that you understand the following risks before trading Deriv products: a) you may lose some or all of the money you invest in the trade, b) if your trade involves currency conversion, exchange rates will affect your profit and loss. You should never trade with borrowed money or with money that you cannot afford to lose.