Forex Trading Log

While I was sitting, listening attentively at Rob Booker’s forex trading seminar. Many thoughts and memories gushed back to me. Remember, I haven’t traded but 7-8 months and I haven’t touched my trading account, nor have read anything related to trading forex. I was sitting there like a n00b. In the first hour I was wondering what the hell I was doing there. The second hour I was trying to remember how it felt like when I was forex trading. The third hour I was trying to remember concepts and the jargon and forex lingo that you need to know when trading currency. It was a struggle to keep up, but I made it thorugh intact. Then I realised there were some unspoken prerequisites to this forex trading seminar.

Prerequisites in Trading Forex

When you study a course or subject in an educational institution, you may have needed to complete a prerequisite subject or course which is required before you proceed, as the subject prepares you and builds a foundation of knowledge that you need to understand the advanced concepts. The same applies to forex trading.

Most budding forex traders, or traders who want to trade for a living have not completed an officially sanctioned/accredited, “how to trade forex” course. There is no Bachelor of Forex Trading. The closest you can get is probably a Bachelor of Commerce/Business/Economics with a major which is closely tied to market mechanics. So what are some prerequisites (in my opinion) which are required when trading forex?

Studying Forex Trading

When studying forex trading, the first lesson you should learn (well, which I suggest you learn) is the concept of risk. This means picking up a book or a course which teaches you risk management as well as probability. Understanding that concept will help your trading as well as help you protect your capital. The next suggested lesson is to study economics and other fundamentals which could influence the market. After that, its time to learn the ins and outs of basic technical indicators. (There are heaps and heaps of them, and so you should start of with the basic indicators like Moving Averages, MACDs and RSIs). Next lesson is to study the mechanics of an actual trade as well as the other accounting related stuff which you need to know to track your trading.