Is Forex A Digital Skill?
Forex, also known as foreign exchange trading, is the buying and selling of currencies on the global foreign market with the sole purpose of making a profit or gains.
There have been arguments and speculations on whether Forex is a digital skill, and this has only increased in recent times, especially as digital tools and platforms have been becoming more important to traders.
This article is going to break it all down and answer the question once and for all if Forex is a digital skill or not.
WHAT ARE DIGITAL SKILLS?
The definition of digital skills, according to UNESCO, is a range of abilities to use digital devices, communication applications, and networks to access and manage information. In other words, they are digital-based and used abilities.
Personally, I consider having a digital skill more than just being computer literate. To be considered a skill, you must be able to produce something with it that’s a little more complex than the everyday stuff of being computer literate.
This article began with a definition because without one you can not really decide what is or what is not a skill. A more deeper detail about digital skills is that if effective they should be able to make you money, to a certain degree.
A skill is however different from a business, as while a business can be made from a skill, it requires more than one skill to profitably run.
Higher-income skills are skills that you can make a lot of money from, and one among them is Forex trading.
So to answer the question, Yes, Forex trading is a digital skill, and not just that it is also a high-income skill.
However, at the same time, if you only consider Forex trading as a digital skill, there is more probability you won’t achieve much in it.
The reason is not far-fetched, having a digital skill is not the core of Forex trading, as digital skills only play a supportive part in the trade; that is helping out in analyzing and interpreting the market information and knowing how to execute trades.
However, those are basically the fundamentals that all traders learn, true success hangs on priming these digital skills till they become technical skills.
WHAT ARE TECHNICAL SKILLS?
Technical skills are the niched, more targeted expertise and knowledge that is needed to be able to perform certain functions and utilize specialized programs and tools.
In other words, if one has a digital skill in graphic design when primed, one can generate a technical skill of user interface (UI) design from it.
Technical skill is a step up on digital skill and is very necessary for Forex trading, as they play a very important role in aiding a trader to achieve success.
Now that we have established that Forex trading is a digital skill, let’s discuss the aspects that are necessary to evolve into technical skills.
This is because while digital skills lay a foundation, it is the development of technical skills that can make one successful in Forex trading. The aspects include:
1) DATA ANALYSIS:
You can not trade, talkless of trading successfully, without the ability to be able to interpret the market, but technical skills take it a step further, by making you excel in identifying trends, making informed predictions and decisions based on the past behavior of the market, and deciphering complex data patterns.
2) RISK MANAGEMENT:
The second and most important aspect that requires a technical skill is in the risk assessment. To be successful, a trader must have the ability to develop and execute profitable risk management strategies.
They must be able to safeguard their investments in this unpredictable market, and no matter how much they make, they will always lose more.
3) PROGRAMMING AND ALGORITHMIC TRADING:
Most traders don’t know that a trader can code and automate their trading. Coding skills as a trader is a whole new level.
Coding here doesn’t totally mean writing codes, programming, and customizing indicators, bots, etc to give you a significant edge. It can also mean implementing and creating bots to automate trades.
This can greatly help you minimize risk and enhance profitability because of the speed and 24/7 availability of a bot.
However, these skills aren’t things you can acquire on a whim but through rigorous study, implementation, and gain experience.
These technical skills help the trader to cut through the complexities of the Forex trading market with strategic precision like a surgeon.
THE SYNERGY BETWEEN DIGITAL SKILLS AND TECHNICAL SKILLS.
The relationship between digital and technical skills in Forex trading is a synergic one as they both complement and enhance one another.
While digital skills serve as both a foundation and the raw materials necessary to flourish and prosper, technical skills turn and transform this into a powerful final product which are powerful tools that make a trader prosper in the Forex trading market.
The traders who recognize and utilize this synergic relationship, efficiently harnessing digital tools to support their technical know-how are the successful ones.
They are the ones who completely understand that digital skills aren’t enough for success. They know that they have to master their technical skills to be able to achieve financial goals.
By totally mastering digital and technical skills, traders become empowered to compass through the complexities of the Forex market with strategic foresight, confidence, and precision leading to them achieving financial aspirations and goals.
FREQUENTLY ASKED QUESTIONS
Is forex trading a skill or gambling?
Forex trading is a skill and not gambling. However, some traders who approach it with greed and lack of knowledge of the fundamentals are gambling and not trading.
