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How long does it really take to learn how to trade forex

How long does it really take to learn how to trade forex?

 
 
This guide will mention how long it takes to learn forex trading and what the necessities
of learning forex are. Before describing the time, it's essential to discuss the
importance of getting educated and the best ways to learn to trade.
 

 

 

The importance of education in Forex

As you may already know, nothing beats experience, and if you want to learn forex trading, the experience is the best solution. When starting out, you must open a forex demo account and try out a few trading strategies and understand the concept of trading. This will help you get a grip on forex trading's technical aspects and how to place market orders. Besides, you'll also learn details about trading platforms like MT4 or MT5 (some brokerage firms also offer their own trading platforms). 

To trade effectively, it's pertinent to get forex education. So, spend some time reading and watching how forex trading works.

 

Best ways to learn Forex trading


1. Open a micro account

The drawback of learning forex trading with a demo account is that you don't feel anything. A trader knowing that he/she would not lose money, wouldn't feel the real trading experience when a person's money is on the line. Therefore, many experts recommend trading on a micro account. This will allow you to make small trades with a few trading lots. You will experience small profits and losses, and in this way, you will get a feel of what it's like to enter the world of forex. 


2. Learn the market movements

To start trading, you have to understand what you're trading. Most beginners take high risks by trading anything that moves. They use high leverage and trade randomly without using any technical indicators. The result is a loss of money and traders leaving the forex market. Getting familiar with currency pairs is what differentiates a pro from an amateur. For example, if EUR/USD starts an upward movement after a downtrend, the inexperienced trader would straight away open a buy position. But, as the overall market trend is downwards, the price would move against the trader's wishes. This is why you need to recognize the market patterns and price fluctuations. 


3. Keeping risks and emotions in check

Managing risk and emotions go hand in hand. When a trader feels emotional, two factors come into play: fear and greed. These factors often lead traders to take high risks, and usually, it ends in failure. This is known as trading psychology. Learning how to tackle different market situations is what every trader needs. Don't fall into the prey of the "get-rich-quick" scheme. It takes patience and proper analysis to become successful in forex trading. 

 

How long does it take to learn Forex trading?

Now that you have understood why education is important and what are the best ways to learn forex trading, it's time to move to the real deal. We are going to divide learning time into three cycles:


0-3 months

This is the time when you open a demo account or a micro account. This will allow you to learn market basics like placing orders, using a stop-loss and take-profits. You'll also experience technical indicators like RSI (relative strength index, Stochastics, Moving Averages, etc. Once you move to a live trading account, your trading psychology will determine how profitable you are going to be. Many traders just take 0 to 3 months to completely learn the ins and outs of forex. However, it depends on individual learning ability. 


3-6 months

After familiarizing the market for 3 months, you'll have some experience. This is the time when you'll dig deeper into the forex market and try key strategies like Elliot Wave, or develop your own trading strategy. You'll also experience various chart patterns like continuous and reversal patterns and create your trading method like scalping, day-trading, or long-term trading. By the time you'll reach the end of six months, you'll understand vital trading aspects like the best times to trade, which currency pair is suitable at a certain time, fundamental analysis like news analysis. 


6-12 months

This is when your trading will move to the last level. By the time you'll reach there, you'll have a complete grip on how what, and when to trade. You'll also develop trading as a part of your daily routine. And if you want to increase the size of your trading account, at this point, you can do that. There will be fewer trading mistakes and more focused analysis. You'll have a one go-to trading strategy, and you'll try other trading ventures like automated trading or copy trading

For us, 12 months are when a new trader would learn the concepts of forex markets. However, it all depends on one's ability and the time he/she dedicate to trading. One person can learn forex trading in less than 6 months, and the other person can take more than a year to know about the forex market. 

So, is learning forex trading hard?

Today, one of the great things about financial markets is the availability of information. The internet is crawling with forex blogs and forums. However, you must choose authentic information sites. If you are a beginner, there are whole sections for navigating your way through the forex market. Besides this, you have a chance to open a demo account. It's not like a real account, but it's worth trying when you are first starting out. The best thing is you won't lose money. 

It is worth mentioning that most experienced traders will tell you that most trading methodologies are simple. Simplification is often the way to become profitable in the long run, as it clears confusion and ensures that you won't miss any trading opportunity.

Conclusion

So, there you have it, it may take 3 to 6 months to learn forex, or it may take two years to understand the market. It all depends on a person and the time he/she dedicates. 

HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions. Any data and information is provided 'as is' solely for informational purposes, and is not intended for trading purposes or advice.