In the Forex industry there are many honest and many not so particularly honest persons
working. The same notion may be applied to the training provided in the industry.
Apart from the honesty and integrity factor, there is also the notion that every service provider
considers his or her service to be different from the pack. And again, the same may be said of
the training service providers in the Forex industry.
Being different from the rest of the pack does not implicate dishonesty. Each service provider
places different levels of emphasis on different items. This does not mean that a service
provider is wrong – the approach is different from the rest of the pack.
It is of critical importance to be able to define what is different in the service that is
being delivered. One cannot just claim to be different and therefore call the service to be of a
better quality and standard. The difference must define and presented to be able to offer the
potential a reasonable chance to make an informed decision.
C2Wealth is a training service provider and prides itself to be different from the rest of the
industry. We have been able to define our difference and is proud to present the reasons for
being different in this article.
The defined difference in presenting training to potential investors stand on two legs – firstly,
we recognize and accepts the fact that there is a difference between education on the one
hand and training on the other hand. Secondly, we recognize the fact that newcomers to the
industry need to find a business from which they potentially can make a profit and a sustainable
income from they may live.
Let us look at these two aspects separately:
Education versus Training
At C2Wealth we believe that there is a difference between education and training. This
difference is built into our programs, which have been developed with this difference in mind.
But what is difference between education and training?
C2Wealth see education as a process of systematic learning that develops a sense of judgement
and reasoning. Training implies the act of imparting a special or behaviour or skill to be utilized
on an operational level.
In this difference we recognize that education has a wider perspective and is comparatively
longer than training. Training on the other hand is the further enhancement of skills
development which improves performance and productivity in the current environment.
We therefore have a strong believe that class-room based interventions are more effective and
productive than technology based and self-study actions. The contact and exchange between
the learner and tutor cannot be fully replicated in a technology-based environment. We also
believe that that self-study is most of the time done in an unstructured manner, is time
consuming and with no feedback from a teacher is less effective. Over time, self-study will be
less cost effective than classroom-based interventions.
It is true that learners do not learn at the same speed in a classroom environment. A seasoned
tutor can, however, with the frame of reference of previous experiences make a big difference
and ensure that all learners receive equal interventions.
At C2Wealth we guard against being overly theoretical. Theory is acknowledged, but the
emphasis is on practical education. Learners need to open a demo account beforehand and
practice what is being taught on the demo accounts. Functionality is not the only aspect that
receives attention – we teach the wider picture and show what impact actions have on each
other. For instance, we teach learners the relationship between lot size, margin and equity and
how a change in the one will affect the other.
One the more serious problems we have identified in the Forex training industry is the fact that
there is tendency amongst certain training service providers to provide limited functional
training and mainly focus on teaching a specific strategy. In this lies a huge problem. In the
Forex industry there is no such thing as “one size fits all”. One strategy cannot deliver positive
results for all. Every trader must find his or her own niche and comfort zone. Traders does not
react the same to the various technical indicators. Trader personalities differ and trading styles
differ. Certain strategies require the trader to be on the trading platform constantly with no
room for free time. C2 Wealth aim to avoid this environment and teach learners to become
skilled in all trading functionalities and independently arrive at their own trading strategy.
There are various training programs available after completing the initial foundation training
course. These training interventions are aimed the further enhancement of the skills acquired
during the foundation education phase. The focus is on practical and specialized skills and can
thus, be training and not education.
We are satisfied that after completing our initial 3 day Forex Foundation course, the new trader
will be able to independently make a judgement call to enter into a transaction after careful
analysis of the market to identify entry and exit points and practice sound risk and money
Forex Business Approach
The new trader must realize and understand from the outset that Forex trading is not a “get-
rich-quickly” scheme. Unfortunately, many new traders fall for the trap of cheap propaganda
on the web or by other media that Forex trading holds the magical key to untold riches in an
easy manner. Nothing can be further from the truth. Treating Forex trading like a trip to the casino will end in the same manner – all money will be lost. Traders should be calm and
calculating with a goal of making profit. Not hoping for that one “lucky draw” that will bring the
At C2Wealth we educate learners the entrepreneurial aspect of trading. Trading, like any other
type of business has associated costs. The trader must aim to bring in more revenue with
winning trades than funds going out with costs. When costs get out of control, money will be
lost and the Forex business will go under.
What are then associated costs of trading? Here is an illustrative list:
- Losing trades
- Broker spreads and commissions
- Trade roll-over and swaps
- Computer hardware
- Internet costs
- Other office equipment
Of the six items listed above, the first one, namely losing trades, has the single biggest influence
and has the possibility to totally wipe out the account.
Losing trades is a fact of life in the Forex trading business and traders must learn to accept
losses and learn from it. The approach at C2Wealth is to educate traders to combat and restrict
losing trades by means of the following:
- Have a well-documented trading strategy and stick to the strategy
- Develop from the trading strategy a trading plan and treat the plan as the Forex Business Plan
- Be the eternal student with an unquenchable appetite for learning
- Stop the search for the trading “Holy Grail” – it does not exist
- Be careful and mindful of the tips and good intentions of the “trading experts”
- Invest in yourself and not trading bots
The foundation education also stresses the importance of risk and reward. The risk and reward
strategy that we teach emphasize a focus on more winning trades significantly larger than the
losing trades. With a risk to reward ratio of 1:2 a winning streak of 35% – 40% will make a
decent profit. This is more achievable than trying for a high percentage of 70% – 80% of the
time with a lower risk to reward percentage.
In the foundation training time is spend on calculations required to better understand where
profit and loss will occur. Learners are taught the calculation of pip values, broker spreads, lot
sizes, margin, equity, free margin and margin percentage. Classroom exercises and homework is
given to ensure an understanding of what make up the profit or loss of a trade. We are of the
opinion that merely showing on-line calculators for this important function is not efficient.
Types of trader also has an influence on trading costs. Scalpers and day traders normally close
their trades before end of day. Swing traders and position traders hold their positions open for
much longer periods – days, weeks and even months. The latter type of trading also incurs
costs, namely roll-over and swaps. These items are the cost that arises in the form of interest
between different banks from different countries (not central banks). Depending on the
interest differential between banks the trader must either pay interest or receive interest.
C2Wealth ensure through foundation education that the trader is aware of these facts for
interest can become a major cost element.
Trader expectation also need to be managed. C2Wealth provide ample examples of prudent
funding of accounts. An expectation to earn a R1 000,00 per month from a R100,00 account will
not be met. With prudent funding comes the importance of correct lot sizes, type of currency
pair to be traded (spread costs) and the use of risk management items.
Forex trading is not an easy scheme, but requires hard work, dedication and discipline. Forex
trading must be treated as a business and not like a casino game. Trading skills are honed when
operational trading is consistent with a documented trading plan and losing trades are seen as