After hitting new heights during the month of April, daily turnover in the forex market fell by 6% to $5 trillion in October. This has been triggered predominantly by declining interest in the Yen and the Euro, which have both suffered as a result of economic austerity and the implementation of aggressive monetary stimulus measures.
The temporary shut-down of the federal government hardly helped matters, as the U.S. Dollar has also weakened considerably since the glorious summer of 2013. More than anything, however, these fluctuations within the market underline the need for traders to be prepared and well educated once they begin to invest their hard earned money.
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How to Learn the Basic Principles of Forex Trading
If you are just starting out as a forex trader, it is imperative that you launch your portfolio from a sound foundation of knowledge. While this may seem logical, however, attempting to build this foundation can be extremely challenging and it requires a significant investment of time if you are to be successful. Consider the following: –
- Partner with a Reputable Brokerage Firm: The nature of financial brokers has changed with the advent of technology, as they now operate largely online and deliver theoretical rather than practical assistance. More specifically, the market’s leading players have developed a number of tools through which they can educate aspiring traders, including the publication of written guides and the sharing of live webinars. To support this, many online brokerage firms also offer traders access to real time news resources, which enable investors to adapt their strategies according to prevailing financial trends.
- Embrace the Concept of Social Trading: The advent of social media has had a significant impact on a huge array of industries, and the financial services sector is no exception to this rule. Social trading is a medium through which novice traders can network with more established practitioners within an online community, as they look to learn successful strategies and apply them to their own portfolios. Interestingly, it is one of the few social media practices that delivers a tangible fiscal return, which means that its value can be measured in pence and pounds rather then social capital.
- Open a Demo Account and Learn from your Own Mistakes: Another key feature of contemporary online brokers is that they offer investors access to demo trading accounts. These accounts can be operated for a period of between six and twelve months, and simulate a real-time market environment where novice traders can develop viable strategies and techniques. The key aspect of these accounts is that they allow traders to operate with virtual capital, meaning that it is possible for them to learn from their mistakes and evolve without losing valuable sums of money.