Intro
In Thailand, as in many countries, Forex trading is a popular way to earn money on the Internet. However, Forex trading requires certain skills. For this, it is necessary to acquire knowledge. In this article, we will reveal ways to gain knowledge in forex trading.
What is Forex Trading and How Does It Work in Thailand?
Forex trading is the trading of foreign currencies. Currencies are traded in pairs, which means that when buying one currency from a pair, the trader sells another. The exchange rate of the pair is an expression of the value of the main currency in the pair in units. Traders profit from fluctuations in the price of currencies.
These fluctuations depend on the following factors:
- Interest rate. Central banks determine the interest rate. The higher the interest rate, the higher the attractiveness of the country for investments, and this affects the strength of the currency.
- Political events, such as elections, have a strong influence on exchange rates. After all, if a leader with a bad economic program comes to power, the exchange rate can fall significantly.
- Prices for resources. Many countries sell resources, and accordingly, the economies of these countries depend on the prices of these resources. When prices fall, so does the exchange rate.
- Export. The greater the country's exports, the greater the demand for the country's currency. The higher the demand, the higher the exchange rate.
Different Types of Forex Market
Spot Forex market
The spot Forex market is a market where traders place their orders through a broker. The spot market means immediate. When orders are placed, they are executed immediately or within a certain time frame.
Forward Forex market
The forward market is a segment of the Forex market where derivatives, such as currency futures, are traded.
SWAP Forex market
The SWAP Forex market is a market where traders can exchange interest payments on a loan in one currency for loans in another.
Ways to Learn Forex Trading Basics In Thailand
All successful Forex traders learned to trade for a long period of time. Many of these traders gained knowledge with great effort because there were neither so many courses nor so many YouTube channels. So let's consider the advantages and disadvantages of these ways of learning the Forex market.
Learn in free courses
One of the ways to learn Forex trading is through free courses. You receive information in the form of blocks of information. There are courses on various topics, courses for beginners, courses that consider certain trading strategies in more detail, etc.
Moreover, it is important not only to take courses but also to study the theory of Forex trading in other sources and read books and articles on thematic sites. For the course to be useful, it should cover a fairly large amount of information about the basics of Forex trading, fundamental and technical analysis, etc. The main advantage of such courses is, of course, that you do not need to spend money in order to gain knowledge.
So, if you don't know where to start, then free courses are definitely for you because you will be able to learn the basic definitions in order to further study these topics more deeply on your own.
Learn on paid courses
When studying Forex with the help of paid courses, the trader also receives information in the form of thematic blocks. Paid courses often offer mentoring, unlike free courses. Depending on the cost of the course, your mentor may be a well-known person in the industry. Mentorship means that you will be able to turn to your mentor with any questions you may have during your course. This communication can take place in the format of online meetings, in the format of a chat, or in the format of trading sessions. After the end of the course, the student usually still has a certain period when he can turn to the mentor. When taking a paid course, there is usually a schedule according to which the trader must study the material in order to have the opportunity to discuss issues with the mentor. At the same time, you can take free courses at your own pace. Having a schedule can be an advantage because the course will teach you not only the basics of Forex but also discipline. This is very necessary for effective trading.
But you should also pay attention to the comments on the course, and read reviews on the forums, because in that case, if the course is not useful, you will waste not only your time but also your money.
Learn with youtube channels
YouTube Forex channels can become an additional source of information for learning Forex. You can read different blogs, take free courses and use YouTube as an additional explanation. The main advantage of learning Forex with the help of YouTube is that you get access to a huge amount of information - for free.
However, the disadvantage is that anyone can post a video on this platform, and therefore no verification of information is carried out and you can check their authenticity yourself or by reading the comments. On the YouTube platform, you can find many videos for learning Forex, including various tutorials. Often you can find entire playlists. For example, a playlist consisting of videos for beginners. A playlist about trading platforms and the like.
Using a Micro Forex Account to learn to trade in Thailand
A micro account is a Forex account with a very small deposit of 5-10 dollars. A micro Forex account is used to learn how to trade in practice. After all, using a small one, a trader learns to manage risks, to distribute his deposit by transactions.
A micro account is different from a demo account because a demo account is only a simulation. Traders do not make market orders, and do not use real money at demo accounts.
Common mistakes that beginners make
No prior research
When you start trading without prior analysis, it's like playing the lottery because you're just trying to guess how the exchange rate will move, but you're not trying to make an analysis that will be based on previous market news and market expectations.
Not following a trend
Following the trend, you buy a currency when its price rises, hoping that it will continue to rise, and sell the currency when it starts to fall. Accordingly, you get the difference between the purchase price and the sale price. When you don't follow the trend, you get losses.
No weekly/monthly goals
Without setting weekly and monthly goals, it is difficult for the trader to monitor his progress, and control risks, which reduces the possible income of the trader.
Leverage
Leverage helps traders trade larger amounts than they actually have. This helps to increase the trader's income. However, using too much leverage can be dangerous because if the exchange rate goes against you, your losses will be greater with leverage.
FAQ:
What is stop loss in Forex trading?
A stop-loss order is a tool to help you manage your risks. You can determine the price at which your position will be closed. This tool will help you cut your losses.
What is stop loss in Forex trading?
A stop-loss order is a type of deferred order that traders use to reduce losses. The trader determines at what price a market order should be created to sell the asset (if the trader believes that the price may start to fall).
What is profit order in Forex trading?
This is a pending order that closes the deal when the price of the asset reaches a certain value, and it helps to lock in the profit.
What should you study in college to learn Forex trading?
Degrees such as business, economics, and statistics can be useful.
What should you study in college to learn Forex trading?
You can start trading in Thailand with 50-100 U.S. dollars.
How long does take to learn Forex trading in Thailand?
You can get the basics in a week, but once you start trading, you can continue to learn new things and deepen your knowledge.