You Don’t Need a Finance Degree to Succeed in Forex or CFDs

There are many myths and legends surrounding trading and online forex with one of them being that only people with finance degrees or Wall Street connections can make it in the world of trading forex or CFDs (Contracts for Difference). But the truth is much simpler and much more liberating.

While, yes, a fancy degree in economics or finance can get you places, a lot of professional traders do not necessarily hold such a qualification. They will also tell you that it takes a lot more than just a degree.

Like with other professions or sports, it takes determination, a degree of talent or understanding of the markets as well as willingness to learn, patience, and, of course, the right trading platform and broker by your side. Many self-taught traders around the world have built strong trading skills and cultivated a certain trading mindset by having a good understanding of how the markets work and how to manage risk.

So, if you’ve ever felt like forex trading is out of your reach, or like an impossible dream, maybe give it some thought and start by taking small steps. Let’s begin by explaining what CFD trading is in simple terms.

What is forex and CFD trading?

Forex is a general term that describes the global market where currencies are exchanged. A tourist may exchange pounds to euros, a central bank may buy and sell currencies to influence the value of its native currency or a hedge fund may exploit currency fluctuations to generate potential profits.

Whenever an individual, financial body or institution is exchanging money, they are all participating in the forex market. When it comes to trading forex online, a trader would do so in real time to make a profit from potential changes in exchange rates.

CFDs (Contracts for Difference)

CFDs allow you to speculate on the price movement of an underlying asset without actually holding it. That underlying asset could be a currency pair, stock, gold or oil. You’re effectively saying, “I think this asset will go up” (so you buy) or “I think it will go down” (so you sell). If the market behaves as you’ve chosen, you make a profit and, if not, you lose.

• CFDs are popular because they allow:
• Flexible trading (you can go long or short)
• Low initial capital (due to leverage)
• Access to many markets from one account

The myth of holding a finance degree to trade

When you think of a professional trader, you may think of someone hunched over in a suit with eyes fixed on six monitors, babbling on about technical terms. But actually, most successful traders are:

• Stay-at-home parents
• Freelancers
• Students
• Retirees
• People with ordinary 9–5 jobs
• Entrepreneurs

They didn’t go to finance school. They learned by doing.

Why you don’t need a finance degree

You don’t need to be good at advanced math but just have a basic knowledge of percentages and some simple formulas. Traders use most tools within platforms so accessing charts, indicators, and news feeds are all included and are just a click away.

Resources are also plentiful and free, as you can see with a well-established broker such as IronFX. You can take your time learning with articles, webinars, videos, and demo accounts.

What matters more than academic knowledge is the way you think and act, whether you are disciplined or can stay calm under pressure.

What you do need to succeed in forex or CFD trading

An inquiring mind

If you’re willing to learn and enjoy learning you’re already ahead. The markets continually change. Every news story, political event, or economic announcement can shift the market. Understanding why that happens is part of the enjoyment of trading.

A good trading platform

It’s essential to choose a solid broker and an easy-to-use trading platform. This is where you’ll learn charts, open your trades, and manage your money.

IronFX gives you:

• Access to MetaTrader 4 (MT4) which is the world’s most popular trading platform
• Real-time data and charting
• Fast execution speeds
• A free demo account so you can practice without risk

You don’t need to be a tech genius to use a modern platform such as MT4. Designed to be user-friendly even for beginners, MT4 allows all levels of traders to explore the markets with ease.

Basic understanding of the market

You don’t need to study economics textbooks or know them by heart, but you need to know the basics such as what drives prices, what leverage and margin are and how you can use them, as well as risk management such as using stop-loss and take-profit orders. These are all stuff you can pick up within a few days or hours by taking online courses or viewing beginner videos on IronFX’s Education section online.

Risk management

Here’s where a lot of beginners go wrong. They get too excited and overtrade or risk too much at a time. Professional traders know how to protect their funds and never risk more than 1–2% of their account on a single trade. They use stop-loss orders to limit potential losses and accept that losing trades are part of it. It is not about being right all the time. It is about managing your risk so that you stay in the game.

Emotional control

You don’t need to hold a PhD to realise that greed and fear will get into your head. That happens in life and trading as well. Professional traders and investors who have been trading for a long time acquire the ability to follow their plan, avoid revenge trading when they lose money and stay calm during chaotic times.

Anecdotes of self-taught traders

There are thousands of traders who started with zero finance background and became profitable traders on a regular basis. Some of them were bartenders who studied charts between shifts, office clerks who spent lunch breaks trading, single parents who learned on quiet evenings and gamers who found trading as thrilling as their favourite strategy games.

You see so many different traders online and read their stories in forums. For most of them, it is their love of learning and the right platform to go along with it that has helped them get into trading and excel in it.

Learn as you go, for free

If you’re interested in getting started with trading, there is no better time than the present. Traders can start with a risk-free demo account to practise on, watch video tutorials that teach the fundamentals, or listen to podcasts and webinars in which experts guide you through techniques. IronFX offers several webinars, podcasts and articles that simplify market analysis and trends.

All of this are also available for free. You can learn and become confident at your own pace before trading with real funds.

Keep it simple and stay consistent

One of the biggest myths is that doing well in trading requires sophisticated strategies. The truth is that most professionals employ simple setups they become familiar with.

Practice:

• A few currency pairs or markets to start with
• A few simple strategies
• Setting daily or weekly goals
• Reviewing your trades on a regular basis

Trading should be seen as every other profession or activity one undertakes and put the same effort and dedication so they can reach their desired destination and goals. With experience, you will get the skills, judgment, and confidence to reach your targets.

Trading is within your grasp

You don’t need to be a finance guru to trade forex or CFDs. You just need a reliable platform and a strong, trusted broker like IronFX. If you have the desire to learn, good habits and lots of patience to try out things and discover what works or not, you will get there. The road to success begins with a single step.

Take that step today. Create a free IronFX demo account, take a look at the market, and see what you can accomplish. You can do this with no degree required. Just dedication, smart choices, and the right partner to help show you the way.

Disclaimer:
This information is not considered investment advice or an investment recommendation, but instead a marketing communication.