Lesson 5: Education

As Warren Buffett said, “The best investment you can make, is an investment in yourself. The more you learn, the more you'll earn.”

Innovation and automation are ubiquitous in many industries around the world. It looked shocking, but some problems followed. More and more people were replaced by robots and had to be retrained or entered another field. In order for people to do these things, most people tend to choose to go back to school instead of considering other options. Although going back to school may help, you can always consider studying on your own. Perhaps that option was unrealistic a long time ago, but with high-quality information and other factors, it is now worth considering educating yourself.

What does self-study mean?

The meaning of educating yourself is to have a series of habits to promote how to educate yourself. Go into the finer details. These habits are part of the system and can help you stay up to date with related topics that you are passionate about. As I mentioned before, this method has only merged as an effective option in recent years. The reason for this is that the information is not available. Decades ago, our information came from newspapers, radio and television.

But now, every day, thousands of people create information through blog posts run by professionals or large companies. Due to the Internet and its greater expansion, the quality and quantity of information has increased. Indeed, the meaning of self-education lies in the use of information on the Internet.

1. Keep Up With Finance and Investment Industry News

Not only news from your industry, but also from other areas of your interest. As I said, the industry is changing because something will always happen. One way of self-education is to understand what is happening in the industry. Like in my case I always update myself with the current prices of local stocks through https://www.pse.com.ph/ Philippine Stock Exchange or through my broker website. The only thing you need to remember is that there are many ways to keep up you can have your own search say not only stocks but currencies, and commodities too. You don’t need to pay to subscribe to multiple brokers to keep up. Go to social media and search for related hashtags or keywords, or sign up for a media distribution list. There are many free options.

2. Enroll In Online Courses

The information is very rich, there are all kinds of courses. Today, online learning is also a very effective way to learn. You can turn to sites like Udemy or Skillshare, which offer thousands of courses particularly trading and investment. There's also education that you get from your online brokers and banks.

3. Find Mentors

One good thing with Finance and Investing industry has technical talents who are willing to teach others. With years of experience in this field, they can impart valuable experience that other classrooms cannot teach you. This is another reliable method, because the instructor is likely to stay ahead. Your years of experience and knowledge of the industry can lead to more specific suggestions. After all, traditional colleges and universities tend to focus on general information rather than the information you really need to know. Mentors are another way to get a personalized experience.

4. Develop These Learning Habits

4.1 Have A Learning Environment.

You don't have a classroom, so it's best to turn the place you often go to a study place. It can be a library, a room at home, or a coffee shop. In any case, there must be a place where you can study and study with determination.

4.2 Highlight Information.

If you like to buy books or e-books, use a stabilo pen. You can also consider other note-taking apps where you can store specific bits of information. Applications like Evernote or Google Keep are perfect for this.

4.3 Learn From Various Media.

We can use different learning methods, although we like one or two of these methods best. Find out which ones you like and challenge yourself to learn in different ways.

4.4 Set Goals.

To learn as a way of life, it is important to maintain this habit. The goal is a great way to keep up with the habits you want to have. Consider tutoring. Not only can you get paid by tutoring others, but you can also consolidate what you have learned. Guidance is also a way to verify and ensure that what you have learned is also with you.

Final thoughts

Self-study is about various methods of how to educate yourself. Although going to webinars, on-line classes, or joining a Facebook finance and investing group is still an effective option, the vast amount of information available allows anyone to learn about any subject. Therefore, you can save a lot of time, money, and consider the waste of these habits. Over time, these habits will pay off.

Theoretical Basis of Currencies

Currency Introduction, Major Currencies and Reasons For Conducting Foreign Exchange Transactions

Exchange Rate Definition

Forex (Forex) is currency trading between countries and is the largest and most liquid financial market in the world. There are an estimated 1.5 trillion US dollars worth of currency transactions in one day, dwarfing the transactions of other types of commodities. Unlike any other commodity transaction, there is no centralized transaction in foreign exchange and transactions are primarily conducted through banks, brokers, merchants, financial institutions, and individuals. Because financial institutions have this ability to trade currencies, the currency market is open 24 hours a day, 5 days a week (closed on Saturday mornings).

Before the late 1990s, currency trading was just a practice of institutional traders. Although retail traders were able to trade the forex market, it has only recently become popular, with individuals trading currencies for huge profits. Most currencies of different countries in the world float freely; this means that they retain personal value and will appreciate and depreciate relative to other currencies. Currencies are always listed in pairs because they require another currency to compare.

Reasons For Foreign Exchange Trading

There are many purposes for foreign exchange trading, and you will be surprised at the many trading levels that affect you without you even realizing it. For every purchase you make, the content, ingredients, by-products, parts or materials are not necessarily national. It can be purchased internationally, so foreign currency exchange must be carried out.

From a financial point of view, some people may trade in the foreign exchange market for huge profits. By using cross-currency pairs, they can exchange currencies for foreign currencies in the hope that the value of their own currency will depreciate, so when you exchange, you will get more income than the initial income.

A great opportunity for international importers or exporters of goods and services to enter the international market. However, with fluctuations in international exchange rates, payments can sometimes be difficult. Initially, the company sells at an agreed price, and then on the date of payment, the agreed value is significantly less than the agreed value, which is caused by currency fluctuations (called exchange rate risk).

You will find that all types of businesses, from large financial institutions to small retail freight forwarders, will conduct currency hedging. In short, these companies will take steps to ensure that the agreed payment value represents the same value on the day of payment, regardless of currency fluctuations.

Eight (8) major currencies Internationally, there are eight (8) currencies whose trading volume exceeds other currencies. They are often called professions. These coins are as follows:

USD - Unites States Dollar

JPY - Japanese Yen

GBP - British Pound

CAD - Canadian Dollar

EUR - European Currency Unit

CHF - Switzerland Dollar

AUD - Australian Dollar

NZD - New Zealand Dollar.

Some parts of the world trade on Saturday during part of the time, because other markets are still trading on Friday. The financial institutions in these countries/regions may deal with the foreign exchange market during working hours. Therefore, the foreign exchange market is open and operates 24 hours a day, 5 days a week. For people living on the east coast of Australia, the trading hours of the relevant market are summarized as follows:

New York session opens at 10:00pm and ends around 7:00am

Sydney session starts at 7:00am and ends around 4:00pm

Tokyo session begins at 9:00pm and ends around 6:00am

London opens at 5:00pm and ends around 2:00am.