Nigerians have embraced Forex. Today, the country sees a surge in online trading. This rise is spurred by lockdown restrictions and the collapse of conventional employment. Thanks to the Internet, anyone can access the global financial market. If you want to become a trader, here is where you should begin.
The Importance of Education
Like any form of investment, Forex trading is not risk-free. Forex is the largest financial marketplace with a daily turnover of 6+ trillion US dollars. Institutions and individuals buy and sell currencies for profit. Success is not guaranteed. It depends on your knowledge and skills. Therefore, learning is vital.
Some critics compare Forex to gambling. Nothing could be further from the truth. To succeed, traders need solid strategies and meticulous analysis. The market is always in flux, but trends are not random. They can be anticipated if you know how to do it.
The First Step
Your primary step is opening a demo account. In Nigeria, traders may choose between local and international Forex brokers. Providers like Forextime are chosen by millions of clients around the world. Industry awards and oversight from organizations like the CySEC confirm the brand’s reliability.
Demo accounts are easy to create. Fill in a simple form on the brokerage site and check your inbox. Usually, login and password are delivered almost immediately. Enter them on the trading platform to unlock the simulation mode. Once you open an account, you can start practical training.
Powerful software like MetaTrader 4 has everything you need. It is packed with price charts and other visual aids. The system delivers financial news and facilitates analysis. Everything from primary research to trade execution is done via the same platform. With a demo account, you can study all the features safely.
Sources of Information
Traders can find an overview of basic strategies on their brokerage sites. Learn about common methods and see which fits your style and resources. How much time can you devote to trading? Day trading can turn into a full-time job, as positions are opened and closed within the same day. Swing trades are more relaxed, as they remain active for days or weeks.
Choose the format you find most convenient. Retail Forex trading took off in the 1990s. Since then, the subject has been thoroughly studied. There are books, articles, podcasts, videos, and more. Choose trusted sources and see how the theory works in the demo mode.
The best way is to ask your brokerage for recommended sources. Global brands have a wealth of resources that cover Forex trading for beginners and plenty of other materials. Steer clear of amateurs and dubious Instagram ‘gurus.’ Check their background before using any advice.
The Best Software
Today, there is a wide range of platforms and apps. The most popular ones, like MetaTrader 4, can be installed for free. The system comes in three versions: mobile, desktop, and web-based. The third one works in browsers, so there is nothing to install.
As data is instantly shared between the versions, users can trade on the go. It is possible to open a trade from a laptop, edit it via an app, and close it from a tablet. You can analyze the market and make profitable decisions wherever you are. Of course, you need to know how to conduct analysis.
Fundamental vs. Technical Analysis
Newbies must learn what factors can sway their chosen currencies. For example, a drop in interest rates causes a rise in currency value, as more investment flows into the economy. From unemployment to diplomacy, the range is wide. Micro-, macroeconomic, and political events are important.
Luckily, trading software makes the task easier. It provides you with relevant updates and features like the economic calendar, so it is easier to predict the future. As most pairs include the US dollar, the health of the US economy is essential for the majority of traders.
Fundamental and technical approaches are two avenues of thought. The first system is focused on news supplied by the media. The second method looks at previous price dynamics to identify likely changes. Adherents to the technical approach seek patterns in the market. For them, nothing is random. All patterns are repeated sooner or later.
You are not obliged to choose one system – many traders combine them. Trading platforms have features facilitating both approaches.
Start Learning Forex
Forex education is accessible to everyone. In Nigeria, brokerage services are provided by global brands, as well as local companies. Create a demo account today and study at your own pace. There is no shortage of high-quality learning material.