Potential traders and novices to forex trading are getting somewhat confused on what is the best method to go about learning how to trade forex or currencies. This is rightfully so, because there are a whole lot of training providers, and independent coaches , even brokers and printed literature all vying for the attention of potential students.
Indeed, if you desire to learn how to trade forex successfully, what is the best way to do so?
Trading coaches and trainers sometimes do have their own opinions, but are their opinions on what is their best way to teach others necessarily be in the best interest of their students?
To get a better understanding of what exactly is the best way for a person to learn forex trading, a recent poll was conducted in a major Forex Trading forum, consisting of international forex traders across the globe, with the question:
"What is the best way to learn how to be a successful forex trader"
A significant number of forex traders responded to the question as a total of 6645 responses were received from the membership, providing direct answers to this question. These were responses from actual forex traders who have faced the same question earlier in their trading careers, and who, now having learnt the tricks of the trade, are able to look back with much hindsight and wisdom, and to share their feelings on what exactly would be the best way to learn forex trading successfully.
Topping the list of the main ways was " to attend more seminars, read books and forums, get some experience and make trading decisions yourself". In other words, members were overwhelmingly endorsing a period of self study and education and paper trading and practice as the best way to become a successful forex trader.
A close second approach was to "sit side by side with a Mentor and study his methods and techniques".
Other responses which receive little support included subscribing to a signal alert or to get live deals from a guru and trade according to them; to buy a software package and trade according to the signals therein; to hire a professional forex portfolio manager or to invest in a hedge fund and monitor trades done by the fund manager to learn from him, and several other minor approaches.
On the basis of these responses from experienced forex traders, it is clear that they were subscribing to the concept that in forex trading, it is important to know how forex trading works, why it works, and to do self study on the various aspects, which will include knowing the win/loss ratios, back testing and strategy testing. By a period of self study, a forex trader can find a system that matches closely his trading profile, his personal tolerance for risk and time frame of trading. Those who were supportive of having a mentor would have the benefit of a fast tracking of practical skills and knowledge, from the mentor to the student, and to gain hidden and lesser known information from a reliable source, namely the mentor himself.
So if you are seeking to learn how to trade the forex profitably, consider the fact that 6645 forex traders are broadly supportive of the idea that it is personal discovery and study, and learning with a mentor that counts as the two major top approaches in learning to be a successful forex trader.
By Peter Lim
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