People usually select forex and other kinds of investing since it seems to be a very simple way to earn a living. Social media portrays forex as a talent you can learn in a few days, trade from your laptop, and amass vast wealth. The realities of forex trading are much different from what marketers would have you believe. With that stated, let’s look at how long it takes to learn to trade forex in this article.
It typically takes a year for someone to learn how to trade forex. The technical aspect can be acquired in weeks, but risk management and psychology will take around a year to master. Most traders quit before ever learning to trade the markets regularly.
Learning to trade forex takes time, and acquiring formal instruction determines whether you can become a skilled beginner. Learning to trade on your own is not difficult, but it may take longer than when you have an expert helping you. According to experts, it takes roughly two years to master the basics.
If you enrol in a trading course, the length of time may be significantly reduced. A comprehensive trading course may help you master the basics in a year and a half. However, education and training are not the only factors influencing how fast you learn.
Other factors to consider include:
It would be best if you kept these factors in mind while you consider learning forex trading via a reliable course or a knowledgeable mentor. This will allow you to learn the ins and outs of trading quickly. We can help you speed up the learning process with our trading guide for retail traders.
Although it seems to be simple online, it is actually difficult. Forex is a zero-sum market, which means you must have the advantage to earn money. It’s also a very liquid and complicated market. This means that it is well-known for stealing money from retail traders since around 70-90% of forex traders lose money.
How long does it take the remaining 10-30% of traders to learn the craft if we ignore the 70-90% of traders that lose money trying to trade forex? On average, it will take a determined student around a year to learn to trade forex.
When it comes to markets, you never stop learning. There are always modifications to be made, items to test, new market conditions, new strategies – the list goes on and on. After roughly a year, you should be at least profitable in the market (not losing money).
I’d expect to see a decent level of consistency month after month after another 6 months to a year.
Some people believe that to learn properly, you must pay for trading education from professional traders. Is this true? No, it does not.
If you learn to trade using free resources such as YouTube, it will take you slightly longer to get all of the necessary knowledge. Online resources are more dispersed, and you may miss out on critical education on topics such as risk management, which may put you back.
If you want to learn without buying a top forex course, I would say that it will take you around 1.5 years to get to grips with trading. This is still quite fast, and learning without buying a course may ensure that a low-quality course does not scam you!
Purchasing a trading course may significantly shorten the time it takes to learn to trade forex. With a good education, you should be able to learn trading in around a year. This is, of course, rather nuanced.
Several factors may influence how quickly you learn, including:
Learning the technical aspects of forex charting (support and resistance, for example) will only take you a few months. Of course, you will improve over time and be able to find levels and react to situations more quickly, but the fundamentals of price action are fairly simple to grasp.
I would definitely advise getting started with Tradingview right away to start paper trading based on what you learn. This is an excellent way to speed up your learning and get a process for the market. Unfortunately, technical analysis is only a small part of learning to trade forex and is certainly the easiest part.
Learning forex’s psychology and risk management aspects will take at least a year. This involves a significant amount of work and personal contemplation. I strongly advise you to keep the psychology of your forex trades and psychological advancements to speed up the process.
Controlling your emotions and making objective conclusions will take time. To ensure you manage the choice appropriately, you must repeatedly put yourself in the circumstance. This is especially important when trading with significant sums of capital.
Skipping this step will almost certainly result in you losing your forex account in the long run. Risk management and good psychology are the only traders that distinguish winning traders from those who lose a large portion of their funds.
Consider MyForexFunds: instead of rushing through the learning process in 4 months, blowing a couple of live accounts, and then trying to rapidly compound your trading account, what if you simply got funded? MyForexFunds provides traders with up to $200,000 in funding and a 65% profit share (risk-free).
I strongly recommend spending that few extra months learning how to trade correctly on a demo account. After you’ve learned, apply for prop firm funding from one of the world’s top prop firms. Rather than rushing your education, this is a far faster approach to becoming a professional trader.
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Choosing a broker is extremely important in every aspect of trading. Trading with the wrong or even an “overnight” broker that is trying to scam you is a harsh reality. Choose a broker that aligns with your needs and that you can trust with your hard-earned money!
The MOST frequent mistake that drags down the learning process is continuously changing strategies. If I had stuck to one forex trading strategy, I would have been profitable years ago. If you spend two months learning a supply and demand trading strategy to forsake it and trade support/resistance, you are only delaying your own success.
I recommend sticking to one trading strategy and just making minor adjustments if any. Most forex trading strategies are profitable; you must manage your expectations.
If you anticipate taking 8 1:4 RR trades daily, you will be disappointed if you only receive 2 per week. Managing your expectations is essential in forex trading, as is avoiding the shiny ball syndrome.
One of the most common mistakes that lead individuals to take much longer to learn forex is relying only on technical analysis. Traders sometimes feel that if you can draw a few lines on a chart, you tend to be ready to trade the markets.
This is fundamentally true. If you exercised proper risk management and did not over-leverage your forex accounts, most basic forex trading strategies would be profitable in the long run.
Instead of making to 10x your trading account and earning $5,000 per month, aim for 5% per month while risking 1%. Once you’ve accomplished this and your risk management is perfect, get funding from any of the best brokers and begin your trading career. Quick account growth is neither sustainable nor profitable.
One of the most common mistakes made by people learning to trade forex is failing to backtest a strategy. Backtesting is crucial to a trader’s success in the markets. There is no proof the system is profitable until you know the objective facts regarding your trading strategy. I
f you aren’t certain that a strategy will be profitable in the long run, you will lose trust in what you’re trading as soon as you experience a loss.MetaTrader 7 - The future of forex trading platforms? — 2023
Backtesting requires you to be impartial and critical of the results. I recommend acquiring at least 5 years of backtested results for people learning a forex trading strategy. This should be shown in a spreadsheet with comments, percentages, hours, days, drawdowns, and images.
Once a backtest is complete, you should trust the strategy completely. This process also massively speeds the learning process since you are exposed to the identical setup thousands of times.
To summarise, it takes traders around one year of hard study to learn to trade forex. The chart work may be learned quickly, perhaps in weeks, but the risk management and psychological parts will take many months.
Learning to trade forex may be accelerated by enrolling in a trading school, keeping a trading record, concentrating on risk management, not switching strategies, and backtesting your trading strategies.
Forex always has an element of luck, which most rational traders argue cannot be accounted for the matter of your level of expertise. No matter how long you have been trading or studying, you will never be able to eliminate the risk that forex trading entails.