For novice or market newcomers, forex trading is an incredibly complex and volatile practice, and one that requires an intensive time commitment from those who want to achieve long-term success.
Of course, no single trader is created equal to another, but anyone who wants to build a profitable career as a forex trader must invest a dedicated period of time to learning the market’s fundamental principles and the underlying rules that govern change.
But exactly how much time do you need to start forex trading? We’ll explore this a little further in the post below.
Exploring the Complexity of the Forex Market
To answer the question in full, we first need to understand the innate complexity of the global forex market. From systems and trading rules to the jargon used to describe different practices, such nuance can be overwhelming to new and inexperienced traders.
The factors that impact the market are also broad and complex, from geopolitical events to macroeconomic aspects such as inflation, trade deficits between different countries and fluctuating base interest rates.
For example, reductions in the base interest rate result in falling foreign investment and capital inflows, lowering the value of national currencies in the process.
It takes time to study and understand precisely how macroeconomic factors like this impact the forex market, but this should be a key priority for anyone who’s new to the space.
Similarly, beginners will have to allow time to get to grips with specialist trading platforms such as MetaTrader 4, which can offer real-time access to currency trading and a raft of alternative markets.
While this platform is customisable and incredibly easy to use, you’ll still need to spend a few days becoming comfortable with the MT4 and understanding how you can get the best from this.
How Much Time Can You Commit to the Market?
Each of these challenges require time and focus if they’re to be overcome, but much depends on how much you can commit on a daily basis.
For example, if trading is a hobby or a passive, secondary income stream, you may only have an hour or so each day to commit.
Conversely, those who are unemployed and looking to trade forex as a career may be able to commit several hours learning each day, and the amount of time you initially spend learning the market will correlate directly with how quickly you gain the skills and practical experience required to tackle the marketplace.
In general terms, you’ll need to set aside several months to learn the market’s fundamentals, while also committing to using a demo account for between three and six months depending on your existing level of knowledge.
During this time, you can test and hone your theoretical forex strategies, while also gaining invaluable practical experience and understanding the precise impact of forex trends.
Ultimately, the time that it takes to start trading forex for real will depend on how much you can commit to learning and practicing from the outset.
Warning risks – Forex trading is not without risk and it is possible that you could lose some or all the money you invest, so it is only suitable for experienced traders.
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