Is South African Forex Trading on the right track?
South African Forex Trading for Beginners
Whether is in South Africa or anywhere around the world, Forex Trading will remain the same, the principles will remain the same, and strategies may differ as everyone has their own strategy at hand when trading. If you don’t have a strategy – you are routed to a wrong road. South Africans have become very active in the Forex Market and the interest in the market grows every day. There are so many institutions offering lessons of the market, however, there are also scammers and fake profiles online claiming to be accredited or having fake testimonials just to lure you in.
It isn’t just in South Africa; this happens all over the world, in fact, most South African Traders are scammed by international scammers. It is also sad to actually point out that some have been scammed more than twice.
Here are some tips for getting started.
- Learn Forex on your own, download PDFs, and make a thorough research on all aspects of Forex Trading.
- Understand that Forex Trading isn’t simple at all; in fact, acknowledge the fact that it is very complex.
- You may need a mentor once you have absorbs as much information as you could.
- Avoid being scammed by joining Forex Community Forums and learn of all the scammers and reliable brokers.
- In South Africa, there aren’t a lot of forex brokers; hence you find that 80% of traders use international brokers to trade.
- Never believe everything you hear, if it’s too good to be true, it most probably is.
- Remember that, the Forex Market is a professional field, and the approach towards it should be as is.
- I do not recommend ‘Account Managers’ at all, I never will, do things yourself and understand the complexities of forex trading.
There are sad times that beginners face, and that is accumulated losses – that can depress you and ultimately quit the market. This is why it is very important to open a demo account in order to learn and understand what you doing. Traders, especially beginners, rush in, in hopes of making tons of fortune in a short period of time and it is often the opposite.
Never take Forex as a gambling platform, as you will fail dismally. There are successful trading tips used by successful traders around the globe, South Africa included.
HERE ARE ULTIMATE TIPS TO BECOMING A SUCCESSFUL TRADER
- Once you have had a demo account and ready to trade with real money, remember not to add to a losing position. (Sounds easy but you might be surprised what beginners do in the forex market)
- Before you open a position in forex, Make sure you configure or set up your TP (Take Profit) and SL (Stop Loss) levels – by doing this, mean you also have determined your stop and profit objectives.
- Never open too many positions (You should have specific pairs that you focus on – learn them and become a pro when it comes to those particular currency pairs). I would suggest at least 3 pairs and a maximum of 5 pairs.
- It is important to know when to exit a trade, remember some traders use a trailing stop when they cannot perceive the changing circumstances. Trailing Stop comes highly recommended (Learn More)
- Not Every day is a trading day, sometimes there will not be much activity and there will be no need to trade – this might be overlooked by your trading plan.
- I should have mentioned this in the beginning; you need to have a strategy and a trading plan before dwelling in the market.
- There are so many trading systems around the globe, and remember this by heart that systems that work in an upmarket may not work in a down market, never forget this.
- In the Forex Market – there are 3 types of markets of which each needs a different strategy – namely: Up Trend, Down Trend, and Average/Range Bound.
- Not all Signals are reliable, and a buy signal that fails means it’s a sell signal, inversely, a failing sell signal is a buy signal (Learn from this, and make changes on your own)
- Beginners need to know and understand that a losing trade is always easier to enter.
Yes, Trading can be fun, but no one will be having fun losing – there are no shortcuts in trading. It is important to understand that even when you face a losing trade today, you should hope for the best the next trading day – Do not trade on guesswork purposes, make a market analysis before entering a trade.
- Do not be greedy, this should be seen on your strategy when trading.
- Avoid Margin Calls at all cost; make sure your margin can handle all your losses.
- It is often said we shouldn’t be swayed by our emotions when trading, however, this is what I say; If you have to SELL then SELL, if you have to BUY then BUY, however, if you feel bothered by something, don’t trade at all.
- Sometimes the market won’t react to the direction of the news; this is when the news is important.
- Read your newspaper, (Read Yesterday’s paper – and learn on the basis of what the market already did).
- Gaps in the market, shouldn’t make you trade.
- Take a break when you are sick.
Sometimes it’s good to take a breather when you a sick, and just watch the market – and never really make a decision when your health is not on par, and sometimes, when everyone is in it, it might be a pretty good time for you to get out.
- Don’t let individual trade measure your success in trading – in fact, take a look at your consecutive profitable days.
- Don’t stop trading when you are winning. Keep at it. It isn’t luck, it’s simply an optimal time-period.
- Stop trading when you are losing, otherwise, you will face accumulative losses, rather do something else and take your mind off the forex market.
- Scalpers are for seconds while Day Traders are for minutes, this will help reduce the number of variables affecting market risk. (learn more)
Often traders would be so much worried when they missed an uptrend or a downtrend, and this shouldn’t bother you. There is always another opportunity around the corner just waiting to be executed.
There are no secrets in the market, its stuff that you won’t even care about, use the tools and never ask for anyone’s opinion, you did your own homework, have they? Think about that.
- Preconceived opinions may sway you otherwise if you don’t say things out loud. Scream any market direction out loud.
- Small accounts should trade with the trend, especially beginners, anything under $10000 I would consider it a small account, however, many suggest less than $25000 a small account, which to me seems a bit more.
- Two accounts are necessary (real and demo account) – the purpose of a demo account is to learn. (learn more)
- Use the upside-down rule, if you turn a chart upside down and it still looks the same, AVOID IT AT ALL COSTS.
- You may trade 1 lot or 2 if you have the right amount of money. (Don’t trade over 2% of your deposit for each position as a beginner; this can increase to 4% when your confidence begins to grow.)
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Many traders fail to create realistic and achievable goals and objective when they start trading. In this market, you need to stay positive and use the time to learn and your effort will pay off someday. When trading, with your plan, objectives, and strategy at hand there will be two most important aspects that will keep you going and winning.
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This will help you to realize the full potential of your trading strategy, by so doing, you will be able to make changes and modify your trading system when it is necessary. Some other facts and tips to remember:
- The lower the spread the better for you as a trader.
- Don’t trade in hopes of paying the bills the next month.
- Confidence is bad, exit a position when you feel uneasy about it.
- Don’t take too much risk.
- Educate yourself
iBusiness Forex Trading is extremely complex and takes a ‘hell’ lot of effort to become a successful trader. Take it one step at a time.