Millions of people engage in online trading around the world. The coronavirus pandemic and great resignation have spurred the growth of this industry. In Nigeria, the Forex community is expanding, too. If you are still skeptical about joining it, this article will change your mind.
Making Money On the Go with Forex trading
One of the biggest benefits of online trading is being your own boss. There are no fixed hours, no reports, no commutes, and no boss breathing down your neck. All you need is an internet-connected device and your own brainpower.
Have you heard of trading nomads? Those who excel in Forex can work from any part of the world. Modern software is compatible with PCs, tablets, and smartphones. There are also web-based terminals that work without installation.
Of course, it is not always rosy, as success requires strong self-discipline. You need to take charge of your own finances. Only you will be responsible for any profit and loss made.
How Does Online forex Trading Work?
Famous brokers like Forextime provide a rich array of opportunities. Most instruments work similarly — you buy low and sell high. This logic applies to currencies, stocks, CFDs, precious metals, etc. To predict rises and falls, traders use technical and fundamental analysis
● Currency pairs
Suppose you trade EUR/USD, one of the most popular Major pairings. Changes in either economy (central bank’s interest rate, GDP, trade balance, etc.) and/or technical indicators will tell you when the price is about to rise or fall. Sell in anticipation of a bearish (falling) market, or buy expecting a bullish (upward) trend.
The more you know about the systems behind the currencies, the better your chances of success. While the Nigerian Naira is not part of exotic pairs yet, Forextime will let you open an account denominated in NGN, so you will save on conversion fees.
Shares of the largest corporations like Amazon or Alibaba are now a click away. What’s more, you do not have to own them to profit from their growth (learn more at site FXTM). Modern stock trading has two dimensions — direct (buying actual shares) and indirect (speculating on price through CFDs).
Contracts for difference are, essentially, agreements between you and the broker. Their subject is a price change. CFDs on Brent are linked to the price of crude oil, CFDs on S&P 500 move in line with the underlying index, etc. The premise is the same — buy low and sell high, and choose the instruments you understand best. The following types are now available:
● CFDs are on commodities;
● CFDs on cryptocurrencies;
● CFDs on stocks;
● CFDs on market indices
Any asset may rise or fall contrary to your expectations. Fortunately, Forex traders can limit their risks in several ways. First, their software includes automatic triggers — Stop Loss and Take Profit. They execute positions only when a desirable price is reached.
Secondly, you shouldn’t risk more than 1% of capital per trade. Thirdly, you can use trading signals and robots. Finally, a balanced portfolio will protect you from dramatic market swings. When one instrument falls, another asset may rise, compensating for the loss.
Forex is everywhere. Articles, books, tutorials, videos, webinars, and other resources are free. Even YouTube is parked with channels dedicated to profitable trading. Reputable brokers offer free (and often unlimited) demo accounts.
Getting started is easy — just fill in a basic contact form and check your email for the credentials. A demo account turns any trading terminal into a simulator. It mimics actual market conditions, so you can see how popular strategies work in practice. This educational tool is invaluable.
On average, beginners spend up to 4 months in the demo mode before they start trading confidently. There is no pressure. Learn at your own pace from any convenient device! you can also learn how to do a Proper Technical analysis in Forex Trading in Australia
What About Forex Scams?
Like any profitable industry, trading attracts fraudsters. Generally, any broker requiring a deposit from the get-go should raise suspicion. At the same time, there are plenty of reputable companies authorized by credible regulators.
When searching for a broker, start from licenses. International brands are approved by such financial watchdogs as the FCA in the United Kingdom, the FSCA in South Africa and CySEC in Cyprus. Licensed companies provide negative balance protection, which means their clients never end up in the red.
To Sum Up
Despite common misconceptions, Forex is the opposite of gambling. It is a legit way to monetize knowledge of financial markets. So, what are you waiting for? Open an account with a licensed brokerage and start building your trading acumen!