Online trading is great way for serious investors to make

money, but inexperienced traders often wind up with big losses.

A good set of instructions can minimize the risks and save

months of expensive trial-and-error learning.

Day Trading

Day Trading had its heyday during the bull market of the

1990's. All the amateurs have since dropped out, but day

trading is still being practiced by professionals. There are

fewer opportunities in the current market, but skilled

investors can still find them if they know what to look for.

FOREX Trading

The Foreign Exchange Market (FOREX), the world's largest

financial exchange market, originated in 1973. It has a daily

turnover of currency worth more than $1.2 trillion dollars.

Unlike many other securities, FOREX does not trade on a fixed

exchange rate; instead, currencies are traded primarily between

central banks, commercial banks, various non-banking

international corporations, hedge funds, personal investors and

not to forget, speculators. Previously, smaller investors were

excluded from FOREX due to the huge amount of deposit involved.

This was changed in 1995, and now smaller investors can trade

alongside the multi-nationals. As a result, the number of

traders within the FOREX market has grown rapidly, and many

FOREX courses are appearing to help individual traders increase

their skills.

As a matter of fact, it's advisable to take FOREX training even

before opening a trading account.

It is vital to know the market mechanics of FOREX, leveraging

in FOREX, rollovers and the analysis of the FOREX market. Due

to this fact, potential FOREX traders would do well to either

enroll in a FOREX training courses or even purchase some books

regarding FOREX trading.

There are pros and cons to enrolling into a FOREX course. For

beginners a FOREX course is a rapid method of learning the

basics of FOREX trading. Not much time is spent on history of

the market or arcane economic theories. Often, on-line or phone

support from a skilled FOREX trader is available to answer any

questions. Also, the information is condensed and practical,

often with graphs and charts.

The disadvantage is the price, as courses are more expensive

than a paperback from the bookstore. Also,

the course may just teach the approach of the trader who wrote

it, and individuals have different trading strategies. The

student may grow accustomed to the logic and focus of the

teacher without coming to realise that nothing is predictable

in the FOREX market, and many different strategies will bring

profits in varying market circumstances. Also, knowledge of

practical applications may not be enough, as the FOREX is

highly unpredictable and there are many external factors, such

as political issues, affecting the flow of finances in the

market.

The best advice would be to do some background research on the

FOREX market first, and then enroll in a course.