There are several things you need to know when you ask the question, “how to start Forex trading” in Nigeria. The answer to this is simply by putting your knowledge about it into work. Once you have completed it, you are able to go with the flow of the industry as other successful traders have already been doing.
However, the principles of Forex trading are relative not easy to grasp, the financial markets are full with pitfalls for the innocent beginner traders. Make sure that you give your Forex currency trading career the very best chance of success by using these simple tips below.
Start with a demo account
I know, you’re eager to make money online, but a demo account lets you get familiar with the trading platform software as well as the fluctuations in the various markets. Most brokers offer a demo account and these types of people use the popular Metatrader trading platform, which can be highly customizable and well supported.
Specialize on a couple of currency pairs
It’s tempting to play every different currency pair but, as the most things in life, it can be useful to specialize. When you take time to study two currency pairs, you’ll start to instinctively understand how they react against each other. For an example, you may choose the British Pound vs America Dollar (known as ‘Cable’) or the Euro vs Japanese Yen. That way, you can spread your risks around. Spend some time to see how you’re your currency pairs react against each other, a sort of fluctuations they experience and the way they react to news items.
Currently, there are 6 currency pairs that are the best to trade. They are:
1. EUR/USD – Euro/U.S. Dollar
2. USD/JPY – U.S. Dollar/Japanese Yen
3. USD/CHF – U.S. Dollar/Swiss Franc
4. GBP/USD – Great British Pound/U.S. Dollar
5. USD/CAD – U.S. Dollar/Canadian Dollar
Watch the news
Certain news announcements could affect the Forex markets. Although, you may prefer to trade on a technical analysis basis, but you still need to care about the news. Certain announcements affect currencies so you may avoid trading at this time because they can make markets volatile.
There are numerous calendars on the internet which give you timings of such news announcements and also the likely severity they will hang on to in the markets.
Sure, the adverts on various Forex trading websites produce a big play about how much money you can earn with foreign exchange trading, but you’re at benefit starting with a little account and working your way up than using your life savings to invest in foreign currency trading.
There is plenty of time and there are always more trades available, especially as the Forex financial markets are open 24 hours a day for 5 days a week. You’re far better off being called the tortoise in the race than compared to the hare.
Although, you may not be driving around in a Range Rover HSE in a couple of years, but you’ll still be trading. Starting small is also good for how much of your bank money you use for each trade – half a percent might not sound like much, but if you’re trading a lot of times each day that small figure could add up to a huge amount.
If you’re smart and able to get your trades right, the upside potential is high even though it’s relatively a small portion of your bank.
This could probably be the most difficult measures of trading. Beware the desire to take revenge in the marketplace after you would have lost some few trades. Stay calm – you can’t win every foreign exchange trading. Things will turn, but if you’re not acting rationally then it’s better to take a break. Poker players do this on a regular basis, the same with almost all of the top Forex currency traders.
Knowing when they are not to place a trade is a least as valuable as knowing when to go short or long for the chosen currency pair.
So, go ahead and take the next step and test out a currency FX trading program today. It will be the best financial decision you’ll ever make!