The Best Ways To Start Forex Trading Investment In Nigeria: Beginners Guide
To start Forex trading investment used to be a mystery to private individuals. It was what only the banks were involved in and no private individuals ever dared to venture into it.
This has however changed with the wide spreading of the internet. The internet has solved the issue of disconnect and made it possible for individuals to assess the market at ease. It’s Popular saying that one can even trade forex from the comfort of his bedroom. Interestingly, the market has a low entry financial requirement.
It’s Important to point out that one can even start a forex business with as little as $100 but this is not advised as the person will find it difficult to make a reasonable profit. This article will point out the various ways that you can make money in the Forex market that you did not know.
Related: 4 smart ways to avoid losses in forex trading in nigeria
Can Ordinary individuals still make money from forex trading? You can start trading investment as an individual. As a part-time or full-time trader, how much profit do you stand to gain? What forex risks do you need to be aware of? Can an individual with average or basic knowledge about money market and financial management Start a forex business? This article will address the above issues and many more. So, follow through to the end, and don’t forget to drop a comment.
What Exactly Is Forex Trading?
Forex trading can be defined as the online/internet currency exchange trade or an act of simultaneously buying and selling currencies of different countries online using internet trading platforms.
Literally, Forex is a combination of the two Foreign Exchange, so, Forex Trading simply means Foreign exchange trading or trading on foreign currencies by its exchange rate. Owing to the fact that Forex trading involves trading in various currencies with disparities in their exchange rates, the ability to make profits or losses depends so much on the economic state of different countries at a time.
Also Read: How to learn forex trading in Nigeria
The various factors that affect an economy at a time defers from those that affect the other economies at that time. Hence, the interaction between economies is volatile and never static. So, the forex market fluctuates with the economies as well.
The currencies of the various economies in exchange for each other experience rises and falls due to so many reasons from demand and supply of currency to government fiats. For instance, the Dollar in exchange for the naira can rise or fall pending on how many people demand the dollar in exchange for naira and how many people demand the naira in exchange for the dollar. If more people demand the dollar in exchange for the naira, the value of the dollar rises and that of the naira falls.
When the values of currencies fall, the forex market is affected. In the forex market, traders speculate on the tendency of a currency to rise or fall within a specified time period. Traders profit on every right speculation of the trend and lose vice versa.
The Forex market is a volatile market that is constantly changing and never totally accurately predicted. This is where the profit or loss is made. If the currency goes up in your favor, you make a profit, if it goes down against you, you make a loss.
The essence of this long explanation is that you need to have the necessary information if you want to start a forex trading investment. It is a very technical business.
Understanding the Forex Market
Understanding the Forex market well enough implies availing yourself of serious training in Forex trading! This equips you with the technical know-how required in Forex trading. It is necessary if you will ever want to start a forex trading investment.
Another Vital requirement is to have enough time and willingness to study this ever-changing price market over a period of time and be up to date with the local and foreign news as global trends have a tendency to determine the direction the prices of the currencies go, either up or down.
It is advised to use a demo account for practice, in order to aid learning and mastery of the market. Almost all the Forex trading platforms have demo accounts where you can practice Forex trading in what looks like real-time trading.
The demo accounts are loaded with virtual money and in real-time mode. The only difference is that demo accounts are artificial accounts with non-drawable funds. Hence, the gains and losses made do not affect the trader’s real funds. So, you neither make gains nor losses in real terms while demo-trading.
You need to continue to practice with the Forex demo account until you become very proficient. You must be good with the virtual trade before you ever attempt with real money because once you are up with the real money, there is no going back, it’s either profit or loss. From then, it becomes an investment that must be handled very seriously.
To start a Forex trading investment is not something you joke with, you need to be up to date with knowledge and information. You must be into it and do research regularly.
How To Start Forex Trading investment in Nigeria
To start forex trading investment, you need to open an account with a forex broker but caution must be taken not to open such accounts with fake brokers as not all brokers are real. In the light of this, it’s advised that you work with the established brokers who have managed to build a good reputation over the years. This will save you from the risk of losing your investment to scammers or brokers That Won’t manage your investment with utmost priority.
You have to go to the website of your desired Forex Brokers and open an account with them. The Forex Broker or the Forex trading platform is the medium through which currency is traded online.
Fund Your Forex Account
Funding is one of the necessary things to do when you want to start a forex trading investment. It is the medium through which you add money to your online trading account. This is the money you use to trade, so you cannot trade without finding your account. This can be done through direct deposit or by using your credit/debit cards.
Have A Domiciliary Account
The Domiciliary account or Dom account as it is sometimes called is used for cashing or depositing funds into your Forex trading account. This is very important for effective transactions and to enable you to make a withdrawal of your profit when there is any. Some use other currency mediums like the e-Currencies but in the end, it will still get to Domiciliary accounts.
Fast Internet Connection
You need fast internet access if you want to start a forex trading investment. Forex trading is an online business and cannot do without an internet connection. In essence, You need a very fast and reliable internet connection to be able to trade Forex in Nigeria or elsewhere.
This is the first step to guard against unnecessary losses. Trends move with time so fast that your internet connection needs to always be as fast to catch up, otherwise, losses in the market are inevitable. Without this, it will be difficult for you to make a profit because your internet has to be fast and reliable to enable you to take quick action.
High Performing Laptop
This is very necessary for efficiency and accurate performance in a live market. Do not make the mistake of using a wacky laptop for Forex trading. Most times, the losses people make are a result of inefficient trading devices. You cannot start forex trading investment without a laptop.
The profit you make depends on your trading skills. Yes, people are still making a profit in Forex trading in Nigeria and will continue to make a profit as long as currency remains in use. In fact, nothing has changed and will probably change forever.
Starting a Forex Trade with little capital is never a good idea. You need to invest something substantial to make a reasonable profit. A serious trader trades with thousands of dollars. I have seen people who make hundreds of thousands of dollars with Forex trade and you too can.