When talking to students of mine very often the subject of free forex education pops up. Many are just overwhelmed with the quantity of accessible knowledge on the internet. Which way to go? Which is good and which is bad? Should I rely on this one or not? Is it worth spending money on courses?
All these questions arise in the beginning of every new journey. So i have decided to write an article on the subject: Free Forex Education – advantages and disadvantages. I will try to cover some of the most common questions I get from my students which I hope will help you choose the path you are going to take when you are starting or if you have already started but you are still in the beginning.
Educated trading is what separates a trader from a gambler!
Free Forex Education
You can find tons and I really mean tons of free forex education all over the place. There are hundreds if not thousands of blogs and websites that offer some kind of educational materials on the subject. Next we have the forums and brokers. The internet is literally packed with information you just have to look for it.
Now the question is: is that info of good quality and is it going to be in fact for free?
The answer to both questions is yes and no. I have seen absolute rubbish posted by people who have no idea what they are talking about, or the worst – they have no idea what they copy/pasted from someone else. This could be a major issue as in the beginning you are building habits. It is like driving a car. If you start learning how to drive alone, you might pick up some wrong habits on the way and by the time you actually take driving classes, these wrong habits will interfere with your real education.
Same goes for forex. If you pick up the wrong ideas and manners you might lose substantial amounts of money by the time you get to the real education. And i’m not even going to talk about the psychological pressure that failure will put on you.
Another thing worth mentioning is that many times what appears to be free is not. One way or another you will be asked to give something – be that may money, email address, phone number, sign up for trial version which requires your credit card etc…
If you are looking for a place to start, check out the two Complete Forex Guides – Beginners Guide and Advanced Guide.
Free Forex Education – Advantages
First thing is first – it is free. If you are about to test the water no need to invest, or at least don’t invest too much.
I believe free education’s purpose is to give you exactly that – test the water!
See if this is your thing. The subject is wide and long but there are plenty of materials that will give you an idea of what you are getting involved into.
Let me give you an example. Imagine that you are going to buy a house. In the beginning you do your own research. Look at the newspaper and online real estate ads. See the basics, how much approximately you will have to pay for X bedrooms in Y neighborhood. You are testing the water. You now have an idea whether you can afford what you have in mind. Also you have an idea whether you can afford it in the neighborhood you want.
Next step is to go to a real estate agency and hire an agent. Probably even consult with a lawyer. This is where the free zone ends. You will now have to pay for commissions but is it worth it? In my opinion yes. There are always tricks, tips and notes that we are not aware of as people who are not in the business.
So If you come across a good educational materials go for it! If you don’t know where to start and how to filter all that is available – ask friends of yours who have more experience than you to direct you. Ask in forums or any other place you can think of. You will know very fast whether you will continue your forex journey or not.
If yes I think it makes sense to go to the next level. Look for paid courses and materials. Try to find yourself a mentor/teacher that will guide you. Also look online or locally for people who do the same. Being part of a team could be extremely beneficial. You will share ideas, learn new things, catch up with setups that you have missed etc… Another important factor is the psychological help. This is priceless when it comes to trading.
I’m not going to lie to you – there will be though times when you have no idea why a perfect setup failed but it did. In such moments it is good to have someone to talk to even if it is just to share. Having a mentor and being part of a group in such moments is really priceless.
Last but not least it is important to find yourself a strategy/system/method that has been proven to work. Don’t be afraid to invest in one. This is the main source of your income. If you are a truck driver, you would want to have a nice, comfortable, reliable truck, right?
Free Forex Education – Disadvantages
As I have already mentioned above there are a few things you should think about and consider when going for the free education. Most important in my opinion is the quality of the knowledge. Make sure to do a little research about the website/person you are going to study from. I really mean that because I have seen it many times:
- Trader X finds the world of trading.
- Trader X studies in a rush everything he can get his hands on.
- Trader X feels confident and he starts trading martingale strategy Z he found on a forum.
- Trader X blows up his account in 4 days.
You will come across thousands of tweaks and ideas on how to trade but I want you to remember that even the simplest moving average cross idea requires practice and has it’s “character”. Don’t rush into the first thing you read, rather practice as much as you can, and practice on demo (simulation of the real deal) not live.
The lack of support is another issue. As mentioned above having a proven mentor next to you to guide you is crucial. It is not a coincidence that some of the most famous and proven traders charge thousands of dollars just for a piece of advice. Paying to be part of a group of traders alone is worth the money!
To be honest it took me a few years to realize it. This is the main reason why I started my club. I make enough from trading to support my family but what the club members are giving me – you can’t put a price tag on that. During the years some of them have become a second family of mine. People with whom i meet every year just to stay in touch, have fun and celebrate. Some of them have even visited me and my family!
This is the kind of relationship i’m talking about. We talk on daily basis and share trading ideas. Many times I would miss a setup but when there are 20-30-40 more pairs of eyes on the charts, we stay on top as a team.
Many times mentoring will be about giving you the right direction or advice not purely related to trading. It is like going to a super market with 200 empty parking spots. You may wander for some time where to park, until at the end you figure out that best place is next to the entrance. So in order not to wander around for some months or years before you figure out which parking spot is the best, and before you lose a few thousand – have a mentor!
I rest my case! In conclusion – don’t be afraid to go ahead and find yourself some free forex materials to get you started. Once you have covered the basics, consider going to the next level. Invest in your financial independence and future. It is 100 times better to buy a quality course/book or personal coaching than losing same amount of money in trading (or should i say gambling) which will leave you at the beginning where you started.
Please do share your opinion on other advantages and/or disadvantages in the comments section below!
If you like this article share and like it – thank you!
Yours,
Vladimir
This is fascinating information!
thanks