Making money online has been a recent trend since there tends to be stiffer competition in the offline market, plus the tedious activities it entails which is never something to write home about. I wrote a post about various business ideas and how to start making money from home, but it seems I skipped one or did not give full details of what it is about, and that is Forex trading. In Nigeria today, many people wish to venture in this business but they do not really full details of what it is all about. In this post, I will be giving you some details about Forex trading in Nigeria and some bit of information that can get you started.
Forex Trading in Nigeria
Before now, Forex trading has been an exclusive business for the banks, where the financial institution makes millions of Dollars by just exchanging the currencies of different countries. Thanks to the introduction of the internet, as it has changed everything. Now it is very much possible and easy for you to trade Forex even from the comfort of your bedroom with as little as $100 start-up capital. Though it is possible to start-up Forex trading with as little as $100, it is however not the best for-profit sake. In this post, I will try my best to clarify some of the mysteries about Forex trading in Nigeria in order to make it simpler for beginners.
To make it simpler so that you can go with the flow, I will try to give answers to some popular questions that people ask, such as:
Is Forex trading still profitable for ordinary individual?
How much can one earn from Forex trading as a part-time or full-time trader?
What are the risks involved in Forex trading that a beginner needs to be aware of?
Can an average person start a Forex trading business with his or her basic knowledge about money market and financial management?
This post will supply answers to these questions (in no particular order) as you read. All you have to do is follow through with all your attention to the end, and also do not forget to drop a comment in the comment box.
What is Forex Trading?
Forex trading can simply be defined as an online currency exchange trade or an act of simultaneously buying and selling currencies of different countries online by using internet trading platforms.
Forex is simply the short form for “Foreign Exchange”. Therefore, Forex trading simply means foreign exchange trading or trading on foreign currency by its exchange rate. Since Forex trading involves the differences in foreign exchange rates, making a profit or loss in Forex trade is usually determined by the economic status of different countries at a particular time.
Since different countries in the world do not have stable economies in relation to one another at any given point in time, the Forex market is never fixed or stagnant at any point in time too. It is a volatile market that is constantly changing, and can never be accurately predicted. The fluctuation determines the profit or loss of a trader, if the currency goes up in your favor then you make a profit, but if it goes down against you then you fall at loss.
Understanding the Forex Market
Forex trading in Nigeria has come to stay, so if you want to be good at it, you need to make yourself available for some serious training in Forex trading. You must get yourself acquainted with the technical knowledge required in Forex trading. You must dedicate time and be willing to study this ever-changing price market over a good period of time and be up to date with the local and foreign news, this is because global trends have a tendency to determine the direction the prices of the currency goes, either up or down.
To get acquainted with the learning process, it is advisable you use a demo account for practice. Almost all the Forex trading platforms offer demo accounts where you can practice Forex trading in what looks like real-time trading. The demo accounts are normally loaded with virtual money and in real-time mode. The only difference with the demo account is that you neither make a profit nor loss while trading.
All you need to do is to continue to practice with the Forex demo account until you are proficient with the trading system. Try as much as possible to be good with the virtual trade before you attempt with real money. This is because once you put it your real money, there is no going back as the end result is either profit or loss. Henceforth, it becomes an investment that must be handled with seriousness.
Your investment in Forex trading is not something you should joke with, you need to get yourself updated with knowledge and information. While you are into Forex trading in Nigeria, you must be ready to do research regularly.
How To Get Started With Forex Trading in Nigeria
Once you have made up your mind to get into the business of Forex trading in Nigeria, and you want to open an account with any Forex Broker, you must know that not all Forex brokers are genuine. I have compiled a list of Forex Brokers in Nigeria, you can look at some of them and make a thorough research before choosing any trading platform with your real-time investment. I will advise you to go for the big and established Forex trading platforms only.
Opening an Account with Forex Brokers
After making your preferred choice (the aftermath of thorough research), you should go to the website of your desired Forex Brokers and open an account. A Forex broker or Forex trading platform is the medium through which you can trade currency online.
Fund your Forex Account
Before engaging in live Forex trade, you must first of all fund your account. You can fund your account either by direct deposit or by using your credit/debit cards.
Make sure you have a Domiciliary Account
Having a domiciliary account is very important for the effective transaction, as it enables you to make a withdrawal of your profit when there is any. Some Forex trading in Nigeria uses another currency medium like the eCurrencies, but in the end, it will still get to your domiciliary account, so you definitely need one. The Domiciliary account is used for cashing out or depositing funds into your Forex trading account.
Have a Fast Internet Connection
You will be needing a very fast and reliable internet connection to be able to trade Forex trading in Nigeria or any part of the world. Without a fast internet connection, it will be very difficult for you to make a profit because it has to be fast and reliable to enable you to make quick decisions.
A High Performing Laptop With Decent Specifications
Having a high performing laptop is vital for efficiency and accurate performance in the live market. You should avoid the mistake of using a low performing laptop for Forex trading. Most Forex traders experience losses due to the inefficiency of their trading devices.
The profit you make is also based on your trading skills. For sure, people are still making a profit in Forex trading in Nigeria and they will continue to make a profit as long as currency remains in use. This fact will probably not change forever.
Starting a Forex trade with little capital is never advisable. You need to invest a good amount of money to make a reasonable profit. A serious Forex trader normally trades with thousands of Dollars. People are making huge amounts of Dollars with Forex trading and you can as well.
When is The Best Time to Trade in Forex
The best time to trade in Forex trading in Nigeria is during periods of high volatility because it is these larger movements in the market that allow for the profitability of building and selling currency at different prices. The Forex market is highly volatile during the European/London (08:00 – 04:00 PM GMT) and New York session (01:00 – 09:00 PM GMT). Major news and events also contribute to additional volatility, and also the start of the trading sessions when the market has yet to normalize.
Risk Management While Trading Forex in Nigeria
Before you get into Forex trading in Nigeria you need to gather all the knowledge you can lay your hands on before taking the first live position in the Forex market. Most people make the mistake of jumping into the market too soon, without learning the proper strategies involved.
The most efficient way to a profitable Forex trading career in Nigeria requires reading and practice. You should read as much as you can about fundamental and technical analysis, design a trading system that suits you, and ensure it gets traded for at least a month on a demo account before starting the real deal.
Is Forex Trading in Nigeria Legal?
My favorite ideology has always been legitimacy. Whatsoever you do, especially online, make sure it is legit. Forex traders in Nigeria must make sure they always stay on the right side of the law in the country. As long as you are trading with a regulated Forex broker, and you are trading for yourself and not on behalf of others, then it is perfectly legal in Nigeria. It is also important that you declare your earnings in your taxes just as you would with any other form of employment.
Now you have gotten a primary knowledge or foundation about Forex trading in Nigeria, I guess it is time you give it a shot. You can as well conduct further research and read more articles on this for a broader knowledge.