To get started, look around for Forex broker reviews on the internet most especially online broker services that operate in Nigeria. Make sure you conduct enough due diligence before deciding which broker offers values and services that best meet your needs. These days, a demo account is being offered by almost every forex broker. Demo accounts are virtual accounts with virtual money which is connected to a real trading platform, receiving real data on the market.
That means you can open and close trades without a single penny. A forex trading demo account is a trading account with monopoly money in it that is connected to the live market. Trades can be placed in real time and represent what would be true losses and gains if the money were real. A demo account will give you the ability to practice trading without the pressure.
For you to be able to make the right forecast about currency trends, you need to be able to analyze current trends and movements in the Forex Market. There are two main types of analysis that forex traders generally focus on, which include fundamental and technical analysis. Fundamental analysis is the study of macro events that will alter the course of a currency pair. Technical analysis is the study of price action, including looking at momentum, trends and reversal patterns. The reason they are quoted in pairs is that, in every foreign exchange transaction, you are simultaneously buying one currency and selling another.
As human beings, we all experience a range of different emotions during different circumstances. Likewise, during trading, many traders will feel different emotions such as euphoria, fear, greed and overconfidence. Letting one succumb to these emotional states can result in making bad trading decisions such as holding on to a market position despite accumulating losses in that position. In order to overcome emotional trading, it is critical that you come up with a trading plan and stick to it despite everything else.
Foremost of all, it is important to have the right broker when beginning your online trading endeavours. While there are literally thousands of online Forex brokers to choose from on the internet, the right broker must, however, be able to fulfil certain key criterion.
Best Forex Brokers in Nigeria – Start Trading Now
AvaTrade has made their trading platforms easily accessible to traders from all over the world by imposing only a low minimum deposit. When trading in Forex, we will be dealing with currency pairs where the value of one currency is quoted relative to another currency. Forex currency pairs can be grouped into three groups, Majors, Minors and Exotics.
Although it is possible to trade with any type of currency pairs, beginners are always recommended to stick with just majors and minors until their trading skills have improved. On the MT4 trading platform, there three ways to open a market position i. By doing so, a trader hopes to earn a larger profit despite trading with a smaller amount of capital. While leveraging has its upside, it also has a downside. As such, traders are always recommended to only use a reasonable level of leverage and not overextend themselves. In addition, to manage their trading risks better, traders should also always use appropriate risk management tools such as stop-loss orders to close their position automatically when faced with a losing market position.
As mentioned earlier in our trading psychology section, a good trading strategy is needed if you ever want to be successful in online Forex trading. A good trading strategy must cover the following areas:. Before you start trading, you need to first decide what timeframe you want to trade. Do you wish to be a day trader and scalp, or do you wish to trade for the short and medium-term? The timeframes that you trade will determine the charts that you will use.
Scalpers and day traders will use charts with shorter timeframe such as one minute, 5 minutes and 30 minutes. Short term and medium-term traders, on the other hand, will use charts with a longer timeframe, such as one based on daily or weekly price movements. Next, decide if you wish to trade the markets using technical analysis or fundamental analysis. As discussed before, technical analysts use historical price data to determine possible future price movements. Fundamentalists, on the other hand, rely on studying the factors that can affect the intrinsic value of an asset.
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This section essentially has to do with self-discipline. Because we can get worked up emotionally when trading, it is best to write down the conditions that you will trade with and stick by them.
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This can be the number of hours traded, the number of trade entries and exits, stop loss levels and take profit levels. All trading activities will involve risks. The same goes for Forex trading. Therefore it is essential that you manage your trading risks properly so you can maximise your profit potential. Risk management includes managing the amount that you will invest in each trade, the type of asset that you will trade with and the number of positions that you will have open at any single time. Once you have developed your trading strategy, it is essential to test it out and iron out any kinks that you might find before actually implementing it in the real world.
At AvaTrade, the broker offers free demo accounts that can be used for testing out your trading strategy without any real risk. At AvaTrade, you can only withdraw your funds using the same method that you used to deposit your funds.
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Most traders start their forex career with hopes for getting rich, but is that truly possible? As with any type of investing there are risks of course, and the best way to get rich is to start with a large amount of capital. Yet of the one-third that do make money some are indeed getting rich. In addition to that you should begin to develop some profitable strategies for trading the forex markets. If you have limited funds starting out this way can be your entryway to some of the most exciting markets available.
The early difficulties are simply the learning curve as you come to understand the jargon, how to use the trading platforms, begin studying technical and fundamental analysis, and everything else that goes along with trading forex. As time goes by many of these things become second nature, and at this point forex trading becomes much less difficult.
It might never become easy, but nothing worth having is ever easy, is it? Still don't have an Account? Sign Up Now. CM Trading caters to both beginners and intermediate traders, it is the best all-round forex company ever. One of the best and most trusted forex brokers in Nigeria.
Forex Trading in Nigeria – How it Works, What you Need to Start Trading
Fully regulated. Yes forex trading is legal in Nigeria. With the rapidly growing Nigerian economy, it was no wonder that the Nigerian forex market has witnessed rapid growth during the past decade, as more and more middle class Nigerians have been joining the fx market.
This boom has led to many scams and fraud taking place. The national watchdog has been therefore cracking down on unregulated scam forex brokers who promise riches to newbies since the past few years.