Forex Trading In Nigeria: Beginners Guide
Well many Nigerians must have been hearing about the word Forex Trading, but not much knew what it is all about but when you mention forex they knew it has to do with banks but have no idea what it is. well I will be writing about how to make money from forex trading In Nigeria and its best if you read carefully and take note.
what is Forex
According to ig.com, Forex, otherwise known as foreign exchange , can be said to be the conversion of one currency into another. Forex is one of the most actively traded markets in the world, that has an average daily trading volume of five trillion united stated dollars.
what is Forex Trading
Forex, or foreign exchange, can simply be explained as a network of buyers and sellers, who transfer currency between one another at an agreed price. It is the method by which individuals, companies and central banks convert one currency to another – if you have ever traveled outside Nigeria, then it is likely you have done a forex transaction.
While a lot of foreign exchange is done for practical purposes, the vast majority of currency conversion is perpetrated with the sole aim of making a profit. The amount of currency converted every day can make price movements of some currencies extremely volatile which can make forex so attractive to traders: bringing about a greater chance of high profits, while also increasing the risk.
Why you should be a Forex Trader
- Forex trading is done in all over the world in different business hours and most of the leading currency can be traded 24 hours everyday for 5 working days.
- In forex trading there is nothing like set time for exchange hour in a countries
- There is no such thing as limitation on long or short currencies
- Another good thing about forex trading is that buying and selling can be done anytime of the day irrespective of the hours.
- the forex market is made of low and competitive spreads.
- IT is very easy to get into and come out of currency trading in the large size market anywhere in the world.
- It is an easier medium to gain exposure in foreign securities law in different languages.
- there is no such thing as clearing fees, government fees, exchange fees.
- Forex trading does not need the involvement of middlemen like most other trading.
- there is very Low transactions cost.
- There are huge participation in single entity that it doesn’t allow anyone to corner the market.
- There is a very low barriers to entry with a mini and micro trading accounts few with as small as $25 only.
- Average individual have access to it with even a minimum trading capital.
- you can practice trading on Demo account for free and also to build the skills. Real time currency market news and charting service is on 24*7.
- It has a narrow focus, unlike stock and commodities which has variety of the options to choose and trade.
- It revolves around eight major currencies without any room for confusion with a crystal clear picture of what is happening.
- The massive volume trades done daily makes it the most liquid market in the world.
- Even banks do not have enough pull to really control the market for a long period of time, which makes it a great place for the decent player for a smart move.
- The forex trading system is simple in comparison to other trading platforms.
What you needed to start Trading Forex
A Mobile Phone : You don’t necessary need to have a computer before you can trade forex, but having computer can give you an advantage on reading the chart clearly and mapping setups.
Internet connection: you need a very strong internet connection to stay connected while trading, take note of the emphasis on strong internet because you cant afford to be out of network while trading
MetaTrading Account: this is the platform where all your trading activities will take place and you can get this from any of the forex broker out there.
Trading Capital: well this is very important, if you have ever heard the saying, you need money to make more money, that is exactly how it is in forex trading.
So if you wanna learn how to make money from forex trading In Nigeria, then you need to make sure you are well handy with the above.
What you need to know to be a successful Forex Trader
Set aside expectations
Many problems arise in forex when new traders become obsessed with chasing profits, and this kind of anxiety can lead to mistakes that cause heavy losses.
So rule Number one to become a trader is to forget unrealistic goals and objectives. The motive of earning money in Forex with just a few quick trades is extremely unlikely. Operating in a risky and overconfident way can lead you to lose your initial or total investment.
Define your trading risk profile
Before you consider trading, get a good understanding of the fundamental aspects of the market. Assess your capital at hand, read trader testimonials online so that you have realistic expectations of returns, and research the markets and currency pairs you’re interested in trading. If you are not comfortable with the dynamics, don’t invest in forex, even if it’s way profitable. This also applies to any market.
Choose a trading strategy
Once you’ve made up your mind to become a trader, the next step to take is to come up with a general strategy. Note that there is no right or wrong way to trade, what really matters is that you define the strategy you will use in different situations.
Set aside your emotions
In forex, Emotions are your worst enemy . Many a time some traders try to see forex trading as a sort of game where they try to beat the market, and then when they start losing, they get overcome with disappointment.
In order for you to become a successful trader, you must understand the mechanics of forex, trust your analysis, and follow the rules and strategy you have set. This is the exact key to reaping the benefits of forex. Emotions can ruin a trader’s experience, so it is important to put them aside and not involve them when trading.
Set your stop loss and take profit
No matter the trading strategy you are using or intend to use, you should always set a stop loss. This type of order allows you to define the closing price of your trade. so your trade will close once it reaches that level, even during your absence. In other words, setting a stop loss will stop you from losing more than the limit you defined.
Keep up with the markets
It is very important to stay up to date with the market, news is vital. Many market movements are propelled by news, central bank announcements, political events, or the expectation of any of these.
Avoid over trading
Avoiding Over trading can not be over emphasized, it is the result of seeing opportunities to make money in forex where there isn’t any. Several people who want to become traders look for opportunities to reach their goal not realizing they are deceiving themselves, and this wishful thinking and is putting their money at risk.
Accept that, eventually, you’re going to lose
Every Forex trader wants to become a success. In reality, ‘success’ does not mean that you must always win each trade, but that the average across all your trades end up with a positive balance. Its impossible Closing each and every one of your trades with a profit. Some professional traders may be consistently profitable on a daily basis, but none of them is without loss.
Develop a trading plan
Discipline in trading cannot be over emphasized, but very little about being an organized trader. It all starts with your trading routine. You need to have a Very strict trading plan that you follow diligently, which will help you reduce risk from unforeseen shifts situation.
Choose a broker that matches your risk profile
If you are worried about the financial security or reputation of your Forex broker, it can be difficult to focus on your trading. If, on the other hand, you have confidence in your Forex broker, this will free up mental space for you to devote more time and attention to analysis and developing FX strategies.
How to start trading Forex
Well you can trade Forex in 3 ways and it all boils down to your choice and i will be showing you below ways you can trade forex.
Learning To Trade Forex
Well to better know how to make money from forex trading in Nigeria, you probably need to learn it. Learning to trade forex is the best way you can comfortably make money with forex trading, and in order to do this you need to know the right place to go and the right resource to go through without having to break a bank.
its okay to get a forex mentor who has been successful with forex trading to learn from and follow his or her footstep. having a mentor is a very good option and when you have an opportunity to have one, grab it with your 2 hands.
But aside this you can also comfortably learn forex at your own pace with the help of several online platforms littered all over the internet prominent of them is the Babypips.com. You can learn basically everything you need to know about forex as a beginner from babypips including trading strategies.
So lets talk about learning forex with babypips.com, babypips have free courses you can take step by step to learn and master forex trading. and the good thing is that their free courses are very good and they explain forex better than anywhere on the internet, so you would enjoy learning.
What you need do is to go to the Education menu of their website and get started. they have the preschool with about 41 lessons, the kindergarten with 14 lessons, the elementary with 43 lessons, the middle school with 20 lessons, the summer school with 12 lessons, the High School with 48 lessons, the Undergraduate – Freshman with 21 lessons, the Undergraduate – Sophomore with 26 lessons, the Undergraduate – Junior with 40 lessons, the Undergraduate – Senior with 38 lessons and lastly Graduation with 31 lessons..
So with this, you can move from a forex novice to at least an intermediate and then you can go over to youtube and follow some Forex expert channel where you can hop into from time to time to learn strategies and many other knowledge bout forex.
CopyTrading or Trading With Signal Service Providers
So, another way you can start trading Forex is simply by copying the trade of other people, this means that you subscribe to the service of n expert such that anytime this expert is trading, he would also drop the signal for you to trade along side with him or her.
This is a very good option to go for, when you have some investment to compound. You cn be copy trading and at the same time learning how to trade as pro.
But one thing with this is that you need to make sure you are going for a very reliable signal provider service one of such is Fx Legion Traders which is a very reliable signal provider because personally i am a JV Partner to the service And so far it has been very reliable, you can visit the salespage at http://fxdominators.info/ .
Equity Investment Management
So here is also another way to trade forex and this has to do with autopilot which means that you will not have anything doing but you will wait to get profit at the end of the day, week, or month.
This kind of service are offered by professional expert traders. they help you manage your account as well as trade for you and profit are shared base on the agreement between both parties.
This can be in the form of an individual or a company. Fx Legion Traders also offer such services with a minimum capital of $500 or N145,000 and a 50/50 sharing formula.
You can read more about FX LEGION TRADERS SIGNAL SERVICE HERE
So that’s it about how to make money from forex trading In Nigeria. if you have any question, kindly leave a comment below.
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