What To Know Before You Start Forex Trading In Nigeria
Forex trading in Nigeria has become increasingly popular over the past decade. Special thanks to the potential rewards and low barriers to entry that it offers. But this doesn’t mean that everyone should jump into it without doing their research first. There are some things you should know before you start forex trading in Nigeria. To help, here are five things you should know before you start forex trading in Nigeria.
Tip: Our preferred forex broker is, Deriv: Visit & Create Account
Find the right broker
Choosing a broker can be one of your most important and difficult decisions when getting started with forex trading. Not only do you need to choose a reputable and regulated broker. You also need to pick one that has access to markets where you want to trade. That said, there are a number of key factors that influence these decisions. For example, some brokers offer more than one currency pair while others may have lower transaction fees on low-volume trades.
The first step to making money with forex trading is to find a reputable broker. Tip: Our preferred forex broker is, Deriv: Visit & Create Account
Start with a demo account
It’s important to start with a demo account. A demo account is an account type that enables individuals to trade forex in real-time without depositing real money. Once you open a demo account it will be credited by virtual money and you can start trading right away. It is important to note that profits obtained in a demo account cannot be withdrawn.
In order to be able to withdraw your profits, you need to switch to a real or live account. On a real account, you’re required to make a deposit. Some brokers like Deriv have a minimum deposit of $5.
Read also: Is Forex Trading a Good Investment or its a Scam?
Learn the basics about trading
Forex trading is not as complicated as it may seem. However, like any other field of investment, it requires specialized knowledge. A lot of information on how to trade forex can be found on the internet but you should be careful when selecting the information. Be sure to do a brief background check on your source of information.
When getting started with Trading Forex in Nigeria, it is advisable that you start by enrolling in a course, preferably a free one. Luckily, here at Capital Gains, we have a free Forex Trading course for beginners. You can find more information about the course by clicking here
Before you start Forex Trading in Nigeria: Read Books
Books are much cheaper than courses and provide a lot of information. Below is a list of our favorite books about investing and trading. We believe that every trader should read them in order to succeed in the financial markets. Make sure you read as many books as you can in order to fill your mind with useful information. You can click the title in order to be able to access the books.
The Intelligent Investor Rev Ed.: The Definitive Book on Value Investing
No Nonsense Forex Trading Psychology
Focus on the long term when trading forex in Nigeria
A lot of people start forex trading with the mentality that it is a get-rich scheme. This is one of the reasons why 95 of the traders fail within the first six months.
When taking a forex trading course be dedicated and give it your best shot as you do to a university degree course. Learning forex can be at times stressful and needs time for you to be successful.
When you finally grasp the concept of forex trading always remember the power of compound interest and cut your losses short while keeping your winning trades run.
Establish your own strategy
There are thousands of technical indicators you can use to determine a currency’s future value, but there’s no one way to conduct your trade. It’s best to learn multiple strategies and figure out which one works best for you and your trading style.
You can learn about the trading strategies, techniques, and tools that we use as the Capital Gains team by clicking here
Use leverage carefully
Using leverage can help you earn more money when prices rise, but it also increases your losses when they fall. As a general rule of thumb, don’t use leverage unless you’re sure prices will rise substantially.
Surround yourself with success stories about trading forex in Nigeria
While you can learn plenty from books and online tutorials, it’s always more helpful to learn from those who have gone before you. Seek out success stories from your local community or industry – if you’re running a business in tech, for example, talk to other successful entrepreneurs about their own journeys into entrepreneurship. This will not only help put your business into perspective but will also give you fresh ideas on what works and what doesn’t. It can also provide valuable networking opportunities as well.
Conclusion
Whatever type of trading you’re looking to do, always ensure that you have a detailed plan to help guide your trades. By knowing where your trade is going and understanding why it’s going there, you’ll increase your chances of making a profit at any level. Remember that, if nothing else, you should never lose more than 1% of your account on any given trade.
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