Can you master Forex trading faster than you normally would? This question is generally asked by beginning forex traders. Most of the reason for this is the perception of Forex to be very difficult to master.
In this brief article, answers to these questions will be provided. Most of them are from the combined trading experience of our Forex team. While the rest were derived from reputable sources that can teach Forex as well.
We are going to start by classifying the types of knowledge needed to master Forex trading fast. This classification will range from relevancy to time dependence to their respective mastering ability. So, tighten those loose belts, and let’s explore.
Types of Knowledge Gained in Forex Trading
Below are the types of Forex knowledge that if gained, may put you on a fast track to achieving that desire to achieve mastery. The ability to quickly achieve currency trading skills depends on how fast you can assimilate basic trading information. This ability as explained below, has been broken into two bits. The first is:
The Time-Independent Forex Knowledge
Time-independent Forex knowledge as the name implies is that necessary information that can be mastered without the influence of time. This type of knowledge can be learned briefly and very fast. The only dependence here is how urgent you need to master it, and how motivated you are.
We are going to take you a little beyond the outskirts of the Forex territory for a while.
Do you remember those times you were able to get a passing grade in a course that you never attended its class? Those moments in which you spend the night going through various papers, but somehow understand enough to let you get away with a pass grade?
The reason why you were able to quickly consume and interpret a semester’s worth of information is the same reason that applies here. In your quest to quickly master Forex trading, you should know that there are basics that do not require much experience or prolonged repetition to learn. These basics include things like what is support, what is resistance, how to trade using Forex price action patterns, and so on.
Time-Dependent (Experience-Based) Forex Knowledge
This type of knowledge can only be acquired and mastered over repeated experience of both profitable and lost trades. The more you trade, the more knowledge you acquire, and the more mastery you achieve.
Again, its speed of assimilation is dependent on the Forex trader. Some traders might take a few weeks to get a partial grasp, some might take months, and some might take years. It depends on your motivation. The main processes of mastering this type of knowledge include backtesting and actual Forex trading.
How to Master Forex Trading Faster with Time-Dependent Forex Learning
Below are trading tips that can greatly increase your learning speed help you master forex trading fast. It entails a bit-by-bit breakdown of the aspects that if focused on, would make your learning and growth in the Forex world a lot easier.
1. Mastering How the Forex Market Works
This is like the basics of the basics of learning Forex. It is quite obvious. There is no way you would profit from the Foreign exchange market if you do not know what it is, how it works, and the important terms involved in currencies.
To sharpen your edge in the market, you will first have to acquire some. These guidelines include mastering the definition of basic terms like leverage, pips, currency pairs, spreads, and so on. All these terms can be quickly learned within a few hours.
2. Learning Fundamental and Technical Analysis
To be honest, Fundamental and Technical analysis are two broad subjects, and they even get more complex with time. But just as you normally master those bulky college courses on the eve of examination, you can quickly consume this knowledge and start racking profits from the Forex market.
Fundamental analysis entails the usage of economic and political information of currencies to trade and make money in Forex. Technical analysis, on the other hand, is a tool that allows profit from the Forex market by going through historical trading data, and waiting for those patterns to repeat themselves—which normally happens.
Mastering the important aspects of these two shouldn’t take much of your time. It can even be brushed up within a few days depending on your understanding ability. And hey, do not take our word for it, prove this to yourself by scanning through this Fundamental and Technical analysis snippet. Also, apply the acquired knowledge on a Demo account and see how it goes.
3. Learning to Register with a Forex Broker and Mastering a Demo Account
A Forex broker as you may have known is a middleman that allows the buying and selling of currencies. Registering with a broker or mastering the Forex market basics through a demo account can quickly be done. The only time-consuming part is learning how to choose a Forex broker that will not cheat you or mess with your trading account balance.
In choosing a Forex broker, the sensible thing to do is to carry out a little internet research. After you’ve done this, quickly go through their terms and conditions and select the one you like most.
We recommend downloading the Meta Trader 4 software as it is available for both PCs and mobile phones—IOS and XOS alike. Also, with this broker application, you do not need to create a demo account, it is automatically created for you upon registering.
4. Learning Basic Risk Management Strategies
Now, the time independence of this has a limited extent. That is why the word “basics” was included. In Risk Management, you can master basics like using stop-loss and take-profit orders, learning how to calculate leverage, and also learning how to trade using both strategies. Again, your learning speed depends on how fast and hungry you are. Some people master these concepts within hours, and some within a day, it just depends on your motivation. In the end, you will have to put in the work if you want to learn faster.
Now let us proceed from those knowledge that require little or no time to master to the ones that are dependent on time.
How to Master Forex Trading Faster With Experience-Based Forex Learning
Now, this is us accepting that certain classifications of Forex trading knowledge can only be mastered by experiencing them yourself. It is time-dependent because it takes time for experiences to occur. But still, there are tactical and strategic steps you can take to make your learning a lot faster.
Below are some of those steps that can make your quest for mastery faster than would normally happen. They are basic Forex trading activities, but the only aspect that makes them special is the addition of some intentionality and consistency. So here they are:
1. Continuously Reviewing Your Old Trades
When you talk about mastery in Forex, you should also include trade quality in whatever statement you make. Because sometimes quality is speed. When we say experience, we do not mean mindless trading. Forex trading Knowledge can be learned through experience but it only becomes faster when you form the habit of reviewing previous trades.
By continuously reviewing your old trades, you learn from your mistakes as well as your wins giving you more clarity on future trades. You get to know the reason why an unplanned switch from swing trade to day trade lost you money. Or why you won the last trade. Reviewing trades also helps to keep composure in the case of a losing streak.
So, you see, one way to quickly master Forex is by intentional and continuous learning from past mistakes.
2. Backtesting Very Frequently
Backtesting means traveling back in time to review the previous currency price movements in the Forex market, to discover how your strategy would have performed. It is very important in making your Forex mastery faster because when you go back to reviewing and studying price movements on charts, you can do so by adjusting the speed to any level you want. So a trade that took a week to close can be studied within a day.
In addition to this, you can quickly test out any adjustment you make to your strategy without going live in the Forex market. By checking and testing out previous price movements, you can discover the winning percentage of your strategy.
3. Open A Real Account with Low Capital
Opening a real trading account to master Forex may sound cliché, but it doesn’t mean it shouldn’t be mentioned here. According to most experienced Forex traders, the real learning starts when you trade, and even faster when you do so with a low capital. This is because you not only learn the dynamics and the unpredictability of the forex market, but you also get to improve your money management skills quickly.
Think about this for a second. Two teenagers are regularly given money to return with an add-on. One was given $1000 and the other, $600. They are both expected to regularly return with $1200. Which of them do you think would master both risk and money management faster? If you choose the first teenager, you should read again.
Opening and trading a real forex account allows you to learn practically and hence quickly.
4. Gain Control Over Your Emotions
Lack of control over emotions is the biggest setback in Forex trading. It hinders any reasonable progress and makes learning slow. Now, here is the big question. How do you master your emotions and hence the Forex market?
The best way to gain control over your emotions Is by testing them in the Forex market. By doing this, you’ll be able to pinpoint your emotional triggers and treat them from the root. Mastering your emotions may take a long time, but without it, your progress in the Forex market will be very slow. This is because you will see yourself entering trades out of greed or leaving trades out of fear.
Another way to master your emotions is by setting a comprehensive trading plan and sticking to it. For example, if you decide to only trade CPI news releases for a certain period, stick to that plan. Doing otherwise could lead to making decisions that are subject to greed, fear, or even rage.
5. Continue Learning and Gaining Experience
This has been partially discussed in the time-dependent section. The only difference is that you have to trade numerous times, experience both wins and losses and learn from the experience. Also, the speed at which you master Forex Trading is dependent on the individual’s urge to learn continuously.
So, if you want to master forex fast, you will have to focus on growth through continuous learning.
6. Optimize Your Trading Strategy
The more you backtest and review previous trades, the more faults you discover in your present trading plan, and the better optimized or flexible your trading plan becomes. This in turn leads to a faster learning in the workings of the Forex market.
7. Constantly Adapt to The Ever-Changing Market
The flexibility of both trading attitude and strategy is another key that can help to quickly master forex trading. The Foreign Exchange market is dynamic and can get very volatile at times, and if you are not watchful in noticing some of these changes, and do not accommodate them into your trading plans, you could lose a lot of money.
Besides being watchful, if risk management tools like stop-loss or take-profit orders are too rigid you could lose money as well. So how do you master the ever-changing market and hence learn Forex faster? It’s all in the simplest of things.
- Get yourself a trusted source so you can receive Forex news frequently and faster.
- Get familiar with the basics of Fundamental and Technical analysis so you can appropriately classify these changes and make the right decisions.
- Always use risk management to be able to face the changes that are bound to occur. And so on.
Where Do I Learn Forex Trading Quickly?
Below are some reputable websites that offer short value-filled courses on how to quickly learn Forex trading. Note this though: some of them require a little money to access their courses, but you can access most of this knowledge free of charge on various YouTube channels. The only problem is that you may need more time to compose them for yourself as they might be in scrambles. So here are some of those reputable websites that offer value-filled courses. These courses were gathered from careful research.
- Udemy Master Course. This website is popularly known for teaching several courses including a simplified Forex master course.
- The Admirals Website. They offer both Forex and CFD training courses and also a series of articles to further make your learning faster.
- Babypips Forex trading course. Just like the series of simplified articles on their website, babypips presents this course to be understandable by a 5-grader. The rest include:
- Forex.com Master Course.
- Tutorial Points Forex trading… and so on.
In addition to this, another way to quickly master Forex is by trading with an experienced Forex mentor. A forex mentor who is experienced and successful can help you master forex trading very fast.
Frequently Asked Questions About How to Master Forex Trading Fast
How Do I Teach Myself to Trade Forex?
Here are some of the steps you can take in learning forex by yourself. 1.) Learn the basic Forex terms, 2.) Research and choose a Forex broker, 3.) Register with this broker, 4.) Trade on a Demo account, 5.) Fund your real Forex account, 6.) Focus on a few currency pairs, 7.) Open your first trade, 8.) Monitor and manage your trading position, 9.) Learn from your experience through back testing and prior trade analysis.
How Many Hours A Day Should I Study Forex?
It depends on the learning ability of the Forex trader. But generally, committing at least 2 hours a day to studying the Forex market should make you a good Forex trader in no time.
Conclusion
Mastering how to trade Forex can be done at a fast pace. All you need to do is to be intentional and highly motivated. To make your learning faster, you will have to be able to differentiate between time-dependent knowledge (i.e. those that can be learned in very little time) and knowledge that requires experience to be mastered. So the whole purpose of this article has been to break down these classifications into tiny bits and to show you that by focusing your time and resources strategically, you can advance your Forex learning in no time.
References
Combining Fundamental and Technical Analysis — dailytrust.com
Choosing a Forex broker — ig.com