It’s indeed a great thought - if you are planning to take a course or join a group of Forex Trading Professionals with an objective of learning Forex Trading.A good trading course or your Forex Coach/ mentor will help an individual to acquire trading & analytical skills, and knowledge to become a successful trader in the foreign exchange market. In ONE SENTENCE, Forex Trading is about making pips and keeping them over and over.
A good mentoring program will teach you to identify trading opportunities, predict the future, time the market with smart guessing skills, and to take profits and close a trade.
Any course you take or mentoring program you join will take you through the basics of Forex trading to begin with. Here the course should ideally cover trading aspects such as what is Forex, What is traded on the Forex, which currency pairs are traded in the market and when, the currency symbols, what is spot market, OTC Forex Market, Reasons to trade Forex, Risks of Forex Trading, Tools to trade Forex and cost involved in terms of initial capital investment, course fee, and so on.
Next lesson moves beyond basics. It throws light of TYPES OF TRADING & ANALYSIS based on which trading is done. That is - Technical trading & Fundamental Trading. A good course ensures that both these aspects are discussed in-depth along with a comparison chart to make the students understand which type of analyses is better under which market conditions or trader’s personalities. An experienced mentor will teach you to combine both instead of relying on just one. A trader here learns the theory to balance the use of both of them; because it is only then that he/she can get the most out of his/her trading.
A good Forex mentoring program will also cover various candlestick patterns along with reversal patterns. Support and resistance is one of the most widely used concepts in trading. A good trading course should also include Support and Resistance Levels, Trend Lines and Channels. Plotting Support and Resistance, how to know if support or resistance is broken.
Fibonacci Ratios are next in line. The Ratio is named behind the famous Italian mathematician Leonard Fibonacci who discovered a series of numbers that created ratios describing the natural proportions of things in the universe. Fibonacci Ratios are highly used elements in trading and there are many different studies of Fibonacci with different names. However a standard course should cover the main two, retracement and extension.
The Forex trading course should also cover various moving averages like Simple Moving Average and Exponential Moving Average and their comparison which helps a trader to get a deeper insight into it. Moving average is basically a way to smooth out price action. A good trading course will teach a trader to use moving averages by plotting different types on a chart to ensure that you can see both long term movement and short term movement. Then come some common chart indicators like Bollinger Bands, Bounce, and Squeeze. A quality course or Forex mentoring program will also include MACD, Stochastic, Parabolic SAR, Relative Strength Index, etc.
Once trader finishes learning or familiarizes himself with various chart patterns the next phrase of trading course begins. The previous steps covered a lot of tools that help traders to analyze charts and identify trends. The first lesson in new phrase covers Oscillators and Momentum Indicators which are about streamlining the use of these charts. Traders will learn about Leading and Lagging Indicators. Oscillators are leading indicators.
Momentum indicators are lagging indicators. Forex mentor will tell you how while the two can be supportive of each other, they’re more likely to conflict with each other. Practical tips and insights like these will help a trader to see things from a different perspective.
Then comes the main Chart Patterns and Pivot Points. This aspect of course will teach a trader about basic chart patterns and formations. When correctly identified, chart patterns often lead to a huge breakout. Understanding and predicting chart formations will help a trader to spot conditions where the market is ready to break out.
Then there is the pivot point’s lesson that helps the trader to identify support and resistance levels. Pivot points are especially helpful for short-term traders who aim to earn from small price movements.
The advance Forex trading course will cover topics like Time Frames, including multiple time frames, Elliot Wave Theory, Creating your own trading system, Market hours, Money Management, Making a Trading Plan etc.
Then finally the course that covers basic, elementary and advanced level Forex trading course should also cover issues like psychological barriers and personalities disorders, market news, market sentiments, myths, and so on.
Now the question is if you join a forex trading course that covers all the above topics, will you become a consistently profitable trader?
The answer is NO.
When you want to start learning forex trading and you want to trade forex and make money, you should know about all the above topics, like chart patterns, candlesticks, moving averages, Fibonacci and… but it doesn’t guarantee that you become a trader. To become a profitable trader there are a few important things that you need to have and unfortunately in most of the forex courses, even the best and most expensive ones, they do not talk about these important things. The reason is that the instructors are not traders. They know a lot theoretically, but they are not traders.
Let me give you an example. When you want to learn to drive, you should read and learn about the car’s different parts, the way it moves and stops, the driving rules and signs and… but knowing about all these things can not make you a driver. To become a driver, you should practice driving while a professional driver who is also a good instructor sits next to you and tells you what to do under different conditions. He/she should teach you how to control your emotions and be patient and drive wisely and confidently. It is not only about the knowledge. There are a lot of things that can not be learned from the books.
To become a good forex traders, you should have the knowledge, but you should have a trading system (strategy) that tells you when/where to buy and sell exactly. Then you should have the patience to wait for your trading system to show you a trading opportunity. You should stick to your strategy rules and trade only when your strategy shows you a sharp and clear entry point. This is called discipline.
I have not made the above story to invite you to join any forex trading program finally. The things that I explained are the facts that you should know. If you go and learn forex through joining different courses, you will learn a lot, but you will always have something missing: You can not trade profitably.
In most cases you can not find out where the problem is. You know a lot but you still lose. The reason is that you have not learned to be patient and disciplined.
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