There are many courses in currency trading and we offer one on this site but what makes a good currency trading course? Let’s have a look at some key elements that a course should contain to help you get the right forex education and achieve long term currency trading success.
Firstly look for realism, don’t be deceived by people telling you that you can make a fortune with no effort – you can’t. If you want to get a course in currency trading then it is up to you to learn the logic, understand it, have confidence in it and apply it with discipline, to lead you to long term success.
Here are some points to be aware of when buying a currency trading course.
1. Beware of courses that Claim Scientific Accuracy
There are many courses that will tell you they can trade with scientific accuracy - but they can’t. If there was a scientific theory of market movement, there would actually be no market, as we would all know the price in advance.
Forex trading is a game of odds - NOT certainties and any system can lose money in the short term, that simply the reality of trading.
2. Beware of courses that Use Far Out Theories
The king of these is Fibonacci and trading Fibonacci retracements.
The Fibonacci number sequence has nothing to do with trading and if Leonardo Fibonacci were around today (he died in the thirteenth century) he would probably be bemused at the way financial traders have hijacked his theory and applied it to trading.
The theory was originally used to solve a problem to do with the copulation of rabbits and has nothing to do with finance.
Traders present it as a scientific theory for trading but it is anything but – if it were scientific the retracements would work every time and they don’t they work some of the time but you can pick any retracement percentage you like and it will work some the time – but that’s not scientific!
Other similar theories are Gann and Elliot wave, both claim to be scientific but are not – leave them to the far out crowd and dreamers.
3. Beware of The Track Record
Anyone can make up any track record and many vendors do!
Be cautious when you see one that looks to good to be true, as it will normally be accompanied by the following disclaimer or a similar one, read it carefully:
"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".
If a vendor puts this disclaimer on a track record, they can simulate anything they want in hindsight knowing the closing prices. Of course doing this is a lot easier than trading for real and not knowing what they are!
4. Beware of Courses that Promise Regular Income
How on earth can you promise a regular income from a market that’s so un-predictable?
Not even the best currency trading systems win all the time and all will have periods of drawdown and losses furthermore, you can never anticipate how long they will last.
Over the longer term a soundly based forex trading strategy should make money - but in shorter time frames anything can happen
5. Beware of Day Trading and Scalping Courses
Forex day trading and scalping is simply one of the best ways to wipeout your account equity. Volatility in short term time frames is random, support and resistance levels are meaningless and you can’t get the odds in your favor – period.
If you ever see a day trading system that produces a track record of gains look for the disclaimer we have highlighted in point 3.
Avoid day trading systems!
6. Beware of Courses with No Satisfaction Guarantee
Any currency trading course will make claims and give you the benefits it thinks it will give you and that’s fair enough – but the vendor is asking you to believe these claims and you therefore should have a right to have your money back, if the course does not deliver what you expect.
You should look for a guarantee that offers to rebate your money in FULL with no penalties after a trial period should you not be satisfied.
Finding a Currency Trading Course that’s Right for You
What you are looking for is a course that suits your personality.
This means you can have one that is simply rules that you have to execute, or can have one that gives you a set of manual guidelines - but allows you to pull the trigger.
Execution Only or Manual Override?
As a general rule it takes tremendous confidence and discipline to execute trading signals, so if you opt for this method make sure that you are have the rules revealed to you, you understand them and you have rock solid confidence in them to follow them with discipline.
Other currency trading courses will give you a manual override i.e a broad set of rules for you to apply on set ups you think are best. There are still rules to follow, but you don’t have to execute every trade. These courses will also give you options on stops, money management and targets. These can be easier for traders to follow, as the forex trader actually has control over the set ups you take.
The method you choose will be down to your own personality and is very much a personal choice.
Trend following or Swing Trading
There are two methods to choose from, you can either swing trade or follow long term trends. Again, the method you choose will be down to your personality.
Following a long term forex trading system takes a lot more discipline than following a forex swing trading system. Why?
Because with long term forex trend following you have to hold on to the trade when open equity dips. These dips in open equity can sometimes be thousands of dollars and it’s hard to hold the trend through them. Sure, long term forex trend following is rewarding but it requires a lot of discipline, as well as the patience to wait for the big trends to emerge.
Swing trading needs less discipline as you don’t hold trades for very long and profits and losses are taken quickly.
Some currency trading courses can be adapted to trade both methods and ours is one of them. Before you start to trade, decide which method is best for you, or mix them together.
What’s The Trading Edge?
The forex course you choose should give you something that is a trading edge.
A trading edge is the part of the course that gives your forex trading strategy the ability to enter the elite 5% of winning traders and should be defined.
It’s is this edge you need to understand and be able to apply with confidence, to enjoy currency trading success.
Newsletters and Support
You should be entitled to 24 hour support so make sure you can ask questions as and when you wish. If you find a forex course that also offers a newsletter to help you spot the trades you can then see how the vendor applies it and this is a great way to further your forex education. This allows you to follow and learn on paper and see if the vendor applying his system is profitable.
If you find a good currency course you should find clear logical reasons on how and why the system works understand and have confidence in it and then be able to apply the methodology yourself with discipline.
You are looking not to just blindly follow – but learn the logic and apply it yourself.
There are many good courses in currency trading – but one size doesn’t fit all.
You need to find a course that not only you have confidence in but also one that suits your trading personality. Courses in currency trading can be an effective way of helping you develop a sound logical forex trading strategy which will lead you to longer term currency trading success.
Firstly look for realism, don’t be deceived by people telling you that you can make a fortune with no effort – you can’t. If you want to get a course in currency trading then it is up to you to learn the logic, understand it, have confidence in it and apply it with discipline, to lead you to long term success.
Here are some points to be aware of when buying a currency trading course.
1. Beware of courses that Claim Scientific Accuracy
There are many courses that will tell you they can trade with scientific accuracy - but they can’t. If there was a scientific theory of market movement, there would actually be no market, as we would all know the price in advance.
Forex trading is a game of odds - NOT certainties and any system can lose money in the short term, that simply the reality of trading.
2. Beware of courses that Use Far Out Theories
The king of these is Fibonacci and trading Fibonacci retracements.
The Fibonacci number sequence has nothing to do with trading and if Leonardo Fibonacci were around today (he died in the thirteenth century) he would probably be bemused at the way financial traders have hijacked his theory and applied it to trading.
The theory was originally used to solve a problem to do with the copulation of rabbits and has nothing to do with finance.
Traders present it as a scientific theory for trading but it is anything but – if it were scientific the retracements would work every time and they don’t they work some of the time but you can pick any retracement percentage you like and it will work some the time – but that’s not scientific!
Other similar theories are Gann and Elliot wave, both claim to be scientific but are not – leave them to the far out crowd and dreamers.
3. Beware of The Track Record
Anyone can make up any track record and many vendors do!
Be cautious when you see one that looks to good to be true, as it will normally be accompanied by the following disclaimer or a similar one, read it carefully:
"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".
If a vendor puts this disclaimer on a track record, they can simulate anything they want in hindsight knowing the closing prices. Of course doing this is a lot easier than trading for real and not knowing what they are!
4. Beware of Courses that Promise Regular Income
How on earth can you promise a regular income from a market that’s so un-predictable?
Not even the best currency trading systems win all the time and all will have periods of drawdown and losses furthermore, you can never anticipate how long they will last.
Over the longer term a soundly based forex trading strategy should make money - but in shorter time frames anything can happen
5. Beware of Day Trading and Scalping Courses
Forex day trading and scalping is simply one of the best ways to wipeout your account equity. Volatility in short term time frames is random, support and resistance levels are meaningless and you can’t get the odds in your favor – period.
If you ever see a day trading system that produces a track record of gains look for the disclaimer we have highlighted in point 3.
Avoid day trading systems!
6. Beware of Courses with No Satisfaction Guarantee
Any currency trading course will make claims and give you the benefits it thinks it will give you and that’s fair enough – but the vendor is asking you to believe these claims and you therefore should have a right to have your money back, if the course does not deliver what you expect.
You should look for a guarantee that offers to rebate your money in FULL with no penalties after a trial period should you not be satisfied.
Finding a Currency Trading Course that’s Right for You
What you are looking for is a course that suits your personality.
This means you can have one that is simply rules that you have to execute, or can have one that gives you a set of manual guidelines - but allows you to pull the trigger.
Execution Only or Manual Override?
As a general rule it takes tremendous confidence and discipline to execute trading signals, so if you opt for this method make sure that you are have the rules revealed to you, you understand them and you have rock solid confidence in them to follow them with discipline.
Other currency trading courses will give you a manual override i.e a broad set of rules for you to apply on set ups you think are best. There are still rules to follow, but you don’t have to execute every trade. These courses will also give you options on stops, money management and targets. These can be easier for traders to follow, as the forex trader actually has control over the set ups you take.
The method you choose will be down to your own personality and is very much a personal choice.
Trend following or Swing Trading
There are two methods to choose from, you can either swing trade or follow long term trends. Again, the method you choose will be down to your personality.
Following a long term forex trading system takes a lot more discipline than following a forex swing trading system. Why?
Because with long term forex trend following you have to hold on to the trade when open equity dips. These dips in open equity can sometimes be thousands of dollars and it’s hard to hold the trend through them. Sure, long term forex trend following is rewarding but it requires a lot of discipline, as well as the patience to wait for the big trends to emerge.
Swing trading needs less discipline as you don’t hold trades for very long and profits and losses are taken quickly.
Some currency trading courses can be adapted to trade both methods and ours is one of them. Before you start to trade, decide which method is best for you, or mix them together.
What’s The Trading Edge?
The forex course you choose should give you something that is a trading edge.
A trading edge is the part of the course that gives your forex trading strategy the ability to enter the elite 5% of winning traders and should be defined.
It’s is this edge you need to understand and be able to apply with confidence, to enjoy currency trading success.
Newsletters and Support
You should be entitled to 24 hour support so make sure you can ask questions as and when you wish. If you find a forex course that also offers a newsletter to help you spot the trades you can then see how the vendor applies it and this is a great way to further your forex education. This allows you to follow and learn on paper and see if the vendor applying his system is profitable.
If you find a good currency course you should find clear logical reasons on how and why the system works understand and have confidence in it and then be able to apply the methodology yourself with discipline.
You are looking not to just blindly follow – but learn the logic and apply it yourself.
There are many good courses in currency trading – but one size doesn’t fit all.
You need to find a course that not only you have confidence in but also one that suits your trading personality. Courses in currency trading can be an effective way of helping you develop a sound logical forex trading strategy which will lead you to longer term currency trading success.
