KELVIN HAN - Forex Education Introduction
Forex education is as imperative for veteran forex traders as it is for novices. Learning to be a successful Forex trader is a constant, unending process. The road to Forex education, therefore, has a start but knows no end. One should not try to deal in the forex markets unless he or she receives appropriate forex education and guidance to become a successful forex trader. There are considerable returns to be made in the forex market, but trading in the Forex is for the educated.
The recent innovations in electronic technologies have made forex education available in ways formerly restricted to the elite market players. The expansion of the Internet and the subsequent mass-scale development of e-commerce have permitted digital trading and forex education obtainable for any person with a processor and access to the web.
Brief History
In the early part of the 20th century, currency markets were comparatively stable. Although diverse currencies and the requirement to trade them had existed for aeons, the exchange rates remained steady. Speculative activity rarely occurred, and the colossal speculative action in the Forex market nowadays would have been nightmarish. The chief catalyst to the speeding up of Forex trading and the consequent need for Forex education was the swift growth of the euro-dollar market.
Paramount for Traders
Scores of traders arrive with modest or absolutely no Forex education to the foreign exchange markets, only to squander their entire resources, in just a few days. Reason: These traders were not concerned to learn the fine details of the Forex markets, strategies one should adopt, technical analysis, currency chart systems and a host of other vital things one should be familiar with before one starts trading. It is imperative for both the experienced and greenhorn traders to have some serious Forex education before they begin dealing in these markets.
Traders Bible
The foreign exchange market is truly one of the most popular marketplaces for speculative activity due to its colossal size, sheer amount of liquidity and penchant for the currencies to move in rather strong trends. A tantalizing characteristic of trading currencies is the high level of leverage offered.
The Forex brokers by and large allow positions to be leveraged up to 100:1.
Without proper Forex education and appropriate risk management, this extremely high level of leverage can result in substantial swings between profit and loss. Forex education teaches us that even veteran traders experience losses, and thus assumptions in the forex market should only be carried out with risk capital funds that, if lost, will not extensively impinge on the traders' individual financial health.
