What to Expect from a ForEx Seminar
Guest Writer Foreign Exchange, Precious Metals, Commodities Investments Suggested Readings Guest Posts October 4, 2015 | 0
As Filipinos, we are rather hands-on with our approach to doing things. For example, we prefer going to malls and physically shopping over buying items online. This trend extends to our investments, where I notice that most Filipino investors would rather attend actual seminars than just studying online courses.
Since you’re reading this blog, I’m assuming many of you have already attended financial seminars before. The most popular seminars are usually those that deal with general investing, real estate, insurance and stocks, with the latter three being some of the most popular types of investments locally. But since I am involved in the forex industry, I’d like to give a different perspective for readers who are considering FOREX as an investment. Specifically, let’s see what topics you’ll typically encounter in a fore seminar.
Start with the basics
Forex seminars will often begin with a short background of the market. Typically covered during these types of seminars are the unique characteristics of the forex market and the features that differentiate it from other investment types. Typically, these seminars will also discuss the main differences between the forex market and the stock market, as these are the two types of investments with the most overlap.
While you probably won’t really learn anything concrete when it comes to the mechanics of forex trading from this introduction, it serves as a good way to get to know the market and what you can expect from it.
Once you’ve gotten a good understanding of the forex market as a whole, the next step would be to understand what affects currency prices. Currency prices are dictated by a number of factors, such as interest rates, employment data and GDP, just to name a few examples. The study of these factors is called fundamental analysis, a term you might have encountered with other investments before. However, unlike stocks, which deal with companies, fundamental analysis in forex trading examines countries and their economic health.
Another important thing you’ll learn during forex seminars is history. No, it’s not history like Heneral Luna, but rather, about how historical data can affect future price movements – a study also known as technical analysis. If you’ve ever encountered a trading platform, you’ve probably seen the different types of charts that pop up on the terminal. Well, when you use technical analysis, you’ll be dealing with a lot of charts and how they form reasonably predictable patterns.
As forex trading is an inherently high risk-high reward investment, forex brokers will advise their clients to practice effective risk management. Thus, one of the frequently taught topics during forex seminars is proper use of risk management. Risk management is not limited to a single method – in fact, there are many different kinds of strategies involved, ranging from the use of platform tools to personal emotional control.
Once you’ve gotten the basic essentials of forex trading down, it’s time to use what you’ve learned. Forex seminars often have portions during which attendees will be given demo accounts, where they will be given the opportunity to trade under actual market conditions.
If you’re really interested in this investment, I think it’s a good idea to attend a few seminars. While it’s possible to learn forex trading by yourself, there’s no substitute for learning from actual market veterans. It will also be a good way to expand your network of investment mentors. At the very least, you’ll get an idea if forex trading is an investment that fits your personal needs. You won’t lose anything by joining, so why not give it a shot one of these days?