When starting in online forex trading, you must understand the mechanics of the Forex market. If you want to preserve the cash balance on your brokerage account, at the very minimum, you must have some concept of economic fundamentals and technical analysis.
The primary influencer of forex markets is global macro-events and news. The potential to make significant profits in forex requires volatility. If the FOMC cut US interest rates unexpectedly, currencies are likely to move wildly. Inexperienced traders may be unsure how to trade in volatile markets and make irrational trades in panic. Experienced traders with a system trade without emotion and will always benefit when the inexperienced do not.
Without having a robust strategy or trading plan in place, trades are mostly thoughts only, and thoughts are emotions. It is a weak base from which trade. Getting a forex education and developing a trading plan is vital if you want to thrive as a forex trader. How can you do this?
There are different ways to study foreign exchange basics before you dive into the wild world of forex trading.
The Best Free Forex Resources Online
Until you understand basics like the forex quote system, trading terms, and market participants, you will not be able to move on and develop a robust strategy for forex trading. Free resources are available online to aid you get the basic forex education necessary to move forward and trade forex. The top forex trading resources for mastering forex basics are:
1. FX Street
The A to Z of everything forex from the basics to advanced strategies, FX Street is an accessible resource in the online trading community
An extensive library of educational content from a well-regarded online broker and catering for all levels of trader from the newbie to the experienced pro.
Interactive learning from basic up to mid-level education, an all encompassing bible of financial information it is easy to navigate with a simple to understand the layout.
Great for beginners to understand the basics of forex by simply presenting complex information. Baby pips also have a busy forum where you can ask any forex related question and expect to receive an answer from a member of this thriving community.
A forex trading website that specializes in beginner traders provides free to use information and resources, including educational material, analysis, and real-time data.
6. Bloomberg TV
Expert panelists and reporters will provide you with copious amounts of forex market information to digest. Immersing yourself in Bloomberg TV every day is a necessity to get an understanding of the FX market.
Learn from Youtube channels dedicated to forex from researching tools and platforms to videos explaining trading concepts. Here is an example of a high quality beginner forex tutorial made available on Youtube by CFTC registered forex broker, TD Ameritrade.
A free-to-use site, DailyFX provides real-time news, live market data, and in-depth technical analysis for those looking to build their forex education.
9. Trading View
Excellent for charting, Trading View, through cloud-based software, allows all traders to track and research the forex market with customizable charts
10. Forex Factory
Forex factory has a trades section where beginners can watch live trades place by a more experienced market participant. An excellent forum section hosts a broad range of active forex related discussions.
The Best Online Forex Tutorials
Online tutorials train you to read charts, understand price dynamics, open and close positions, and see developing patterns, a further move towards developing your trading strategy.
There is a number to choose. We have selected our best five
11. Learn to Trade
A site which offers free live FX workshops and a lot of other free online resources
12. Trading Academy
A website that provides a free online trading course if you subscribe. Trading Academy also offers free-half day training courses all over the world
13. The Forex Guy
Access to a forex trading course that will teach you how to interpret charts, access to weekly video tutorials and access to a trading community forum
14. 2nd Skies Forex
A highly rated, free beginners course in forex consisting of 12 chapters covering you from the basics to forex trading strategies
15. Winners Edge Trading
Well known within the forex trading community, Winners Edge offers some free tools including forex calculators
Finishing Your Online Forex Education
Once you think you have covered the basics through free online resources and furthered your forex education with online tutorials, it is the time to develop a strategy.
Unless you have done so already, you will need to open an account with an online broker, and the final stage before you start trading with real money will be to hone your strategy on a demo account.
Forex resources, ourselves included advocate cutting your teeth with a demo account. Learning not only to develop or fine-tune a strategy but also to familiarise yourself with your broker’s online platform to avoid making order placement errors when you commence trading live.
We wish you happy trading – From everyone at Axcess FX