People interested in becoming a Forex trader for purposes of supplementing existing income or generating a new income often wonder how much time must be invested in order to become a successful Forex trader.
Well, the good news is that to learn Forex and its basics can literally be accomplished in a matter of hours.
Trading Forex is really very simple because there are really only three possible directions for prices to take. They can either go up, down or sideways.
Predicting those directions, however, presents a substantial challenge. This will require you to spend some time learning how to analyze prices in hopes of establishing expectations of where they are headed over whatever period of time you used to trade.
There are basically two types of analysis: fundamental and technical.
Fundamental analysis uses criteria such as exchange rates, economic reports and political events, all of which influence the value of one currency against another, which is at the heart of Forex trading, in an attempt to determine the change of value between one currency versus another.
Technical analysis, on the other hand, uses charts of past price activity and assumes that all fundamental events have happened in the past, have a probability of repeating in the future, and are thus accurately reflected by price patterns formed on the charts.
Is one form of analysis better than another?
Each camp, a fundamental and technical, as its proponents who can supply a great deal of evidence to support their position.
For all practical purposes, it’s probably a good idea to learn about both types of analysis, and devise a strategy for trading Forex that incorporates the best aspects of either.
This process can and does require an ongoing learning effort. Any Forex trader who has experienced any type of long-term success will tell you that this learning process never stops.
As for how long you have to spend learning before you can begin forex trading, is a purely personal decision. It takes time to observe the fundamental processes and gain experience as to how they caused the market to react. It takes time to understand the vast array of technical tools that traders use, determine which ones you prefer and then proceed to understand those tools sufficiently for you to feel comfortable and therefore enjoy a higher probability of success.
In the end, you’re the only one that can determine how much time you’re willing to devote becoming a successful Forex trader. Don’t rush, give yourself all the time you need. The Forex market was there yesterday, and it will be there for the foreseeable future. If, ten years from now, you’re still trading Forex, you obviously have achieved success and will continue to learn every day that you either observe or participate in the Forex market.