Self-Study
This method is used by most beginners. Probably because it’s free. However, self-study is not suitable for everyone. What to expect:
- It will take lots of your free time. You will find tons of articles on any topic on the Internet but it can take months to find, sort and master them.
- You need to figure out everything yourself. Along with the worthwhile material, you will stumble upon a lot of misinformation. Make sure to follow the correct advice before starting real trading. To make things easier, choose sources you can trust. For example, read books and publications by world famous traders.
- You will learn from your mistakes. When you do something wrong, there will not be a professional nearby who will tell you how to fix everything. You will have to learn how to analyze your trading and draw the right conclusions. Expect your mistakes to cost you money.
The method seems complicated but it has its advantages:
- You choose the time for training yourself.
- Self-study can be completely free.
- There’s no need to delve into topics that you are not interested in. For example, if you are not planning to trade precious metals or exotic pairs, you can immediately forget about them. When taking courses, you might have to listen to and master all the material.
- You don’t have limits. Courses might be narrowly focused which deprives you of versatile development. Self-study gives you the opportunity to grow at your own pace and direction.
Professional Education
This method has a number of advantages over self-study:
- You only get verified information. You don't have to filter out unnecessary and even incorrect facts yourself.
- If something is not clear, you can ask a question and get a competent answer.
- A professional trader will analyze your trading history, point out your mistakes, and give advice to increase your chances of winning from the first trades.
- Some courses provide a turn-key trading system. This way you don't have to look for a working strategy and create a plan. This can make your first steps in trading easier.
Though there are a few disadvantages:
- Some courses cost a lot of money.
- You may need to master topics that you are not interested in. For example, you might be required to learn swing and position trading even if you plan to become a scalper.
- Often you have to adjust to the course schedule.
Not all courses are expensive. Some traders give basic lessons absolutely free. If you have an opportunity to learn from a professional, make sure to do so. However, remember that Forex is full of scammers. Before giving money for expensive courses, make sure that the teacher is competent: read reviews about him, talk to him personally.
Do You Need to Learn Trading, and Why Doesn't It Always Work?
Sometimes, courses don't work. Of course, you need to learn basic terms, candlestick analysis, patterns, etc. However, many "gurus" actually promise mountains of gold by showing you pictures of expensive cars, lots of money, and a luxurious life instead of real learning. Moreover, many teachers sometimes do not trade themselves but use PR and marketing to sell their courses.
Here is an interesting fact: most successful stock speculators of the 18th, 19th, and even early 20th centuries had no education. Hundreds and thousands of new people come to the market every day, their skills and level of training vary greatly, and the sad statistics say that only 5% of them will succeed, while 95% will lose money and leave. Only practice will help you to check which of these categories you belong to.
If you decide to use a paid course or contact a professional trader, I recommend reading the reviews about the course you have chosen and making sure they are not fake. Learn as much as possible about your future mentor and his achievements in the market. Compare them with competitors, and don't hesitate to ask questions.
Which Method to Choose
Undoubtedly, nothing beats the assistance of a professional trader. However, the best way to learn is to combine the two methods. After signing up for courses, don’t give up on self-expansion of knowledge. Start by reading books by renowned Forex investors. Their personal experience will help you shape as a trader.
And most importantly, don’t forget to apply all your knowledge on a demo account first. If you go straight to real trading, then any training, independent or professional, might end in loss of your entire investment and frustration. The path to success in Forex can be long and difficult but financial independence is totally worth it.