Education
Archive for Collins Koranteng
Deaching of the great explorer of the truth the builder
Top benefits of Geldex Forex Training Courses
For long-term advancement and profitability, education in online Forex Trading is a beneficial tool that helps you prepare and make informed trading decisions, instead of impulsive emotional decisions that often lead to account failures. In our article, Why Education and Training in Online Trading is A Must before Trading Forex, we discussed extensively how important it is to adapt to how the market operates, as well as other conditions co-related to Online Forex Trading. It is only after dedicating a significant amount of time to acquiring knowledge, building strategies, and perfecting your trade, that you stand the chance of reaping profitable results from online forex trading. In our world today, learning about any topic is within one’s reach, and Beginners who want to learn to trade the online forex market are no exception, with a number of options available to them. These include taking Trading Courses Online, downloading and reading forex trading materials online; engaging in self-paced online workshops; or Signing Up for and Taking a Face-to-Face Forex Training Course with a Trading Academy. Books and other online sources that educate people about forex, do a pretty good job of equipping them with the essentials. Nonetheless, all these internet sources have inherent limitations, which cannot guarantee the crucial outcome of ensuring you trade profitably and consistently. Of the aforementioned options, face-to-face training courses have more practical benefits, and in this article, we present to you the unique benefits of Geldex Training Courses. Courses Taught by Professional Traders and Analysts Geldex’ Trading Coursesare specifically designed and taught by professional traders and analysts, giving students direct access to proven industry experts and the opportunity to interact with their tutor. This option may not be available to you with other courses. The Geldex Forex Institute is very much like a Forex Boot Camp, where students earn the knowledge, tools, and required skills sooner than they would on their own. The Best Forex Trading Courses have certain essentials in common, and the key aspects of the Geldex Trading program include: Forex concepts Fundamental Analysis Technical Analysis Trading Strategies in Real Market conditions Development of skills, including Trading psychology Here at Geldex, we offer you a variety of forex trading courses, tailored for each trader’s level, and pride ourselves in the quality and comprehensive nature of materials available to you, put together by our team of forex experts, analysts, and leading professionals in the industry. Our Forex Trading Coursesfor beginners, for instance, are tailored for your unique needs as a beginner or even someone without a financial background. They are streamlined, developed by experts, properly structured, and coherent in form. Purposely Designed Course-Programs The Forex Certification Courses for our Beginner and Intermediate programmes are purposely built to give you an in-depth understanding of online Forex Trading and set you on the path to becoming a Master Trader. From our Trading Academy, you acquire knowledge of how currency values are determined and the factors that impact exchange rates. This puts you in a better position to develop strategies and profit from market fluctuations. In addition, the Geldex Forex Institute offers you a strong grasp of risk management, using Online Trading Platforms, and money management. Our students gain hands-on experience while working on these subjects under the instruction and guidance of a professional and experienced tutor. Trading Strategy and Mindset All successful traders understand that trading is not a sprint, but a marathon. On the basis of this, they expect success while welcoming failure as a learning opportunity. Our programmes, which have been identified under the Best Forex Trading Courses, are designed to take you through the rudiments of developing your mindset, a critical step when preparing for a career in Forex Trading. The Geldex Trading Academy trains students to THINK like professional traders. Our Forex Trading courses are meant to discuss and explain the importance of strategy, and our students get the opportunity to experiment with several proven trading strategies to help them decide on which ones best suit their trading styles and individual investment goals. For practical purposes, we always encourage our beginners to use low-risk, yet profitable trading strategies. Armed with these, our students are able to trade on Demo Accountsafter their first few lessons. Hands-On Practice and Live Trading Unlike other trading courses that offer simulated trading, making it difficult for students to translate into real-life scenarios, the courses in the Geldex Forex Certificationcourses are specially designed to give you hands-on experience using real Trading Platforms, and for new or beginner traders, this is an invaluable experience you acquire, especially considering the fact that Live trading is done under the guidance of an expert trader. This gives you the opportunity to ask questions as you go, learn how to set up profitable trades, and manage risks in an actual trading environment with real-time trading conditions. Networking Opportunities Although Retail Online Forex Trading is an individual pursuit, it can be helpful to have a strong network of colleagues, and the Geldex Trading Academy offers you that as well. One may wonder why this is important. We believe that the best forex trading courses for beginners should offer students, the opportunity to surround themselves with both experienced trading professionals and people at their own levels, on the same journey. This ensures you have more access to knowledge and expertise and are therefore more likely to be successful. With this kind of enhanced network, you have access to a list of contacts with whom you can seek advice, and even discuss analysis and strategy. A well-established network serves as a great source of information on anything and everything forex trading. Mentoring Opportunities We know that beginner forex traders more often than not, experience several problems when they begin to try their hands at what they are learning. Without another experienced trader watching over your transactions, the cause of these problems can be difficult to diagnose. The trading courses Geldex offers come with the opportunity for students to be mentored by an Expert forex trader who
Currency trading and its 7 pairs
All over the world, there are many official currencies that are used. However, on currency trading platforms, only a handful of currencies are actively traded. One currency is exchanged for another at a pre-determined price in online currency trading. For Profitable Currency Trading, it is the most economically and politically stable and liquid currencies that are demanded in sufficient quantities. For instance, due to the size and strength of the economy of the United States, the American dollar is the world’s most actively traded currency. All the primary currency trading pairs contain the USD. In Online Forex Trading, all trading, whether buying or selling, takes place through currency pairs, and the most common currency pairs often involve the US dollar or the Euro. In some instances, though, you will find currencies of countries such as Australia and New Zealand could feature. A currency pair is the national currency of two countries coupled for the purpose of trading on the foreign exchange market. It is a quotation of the relative value of one currency in terms of another currency. Both currencies will have exchange rates on which the trade will have its position basis. Nearly all countries’ currencies can trade, but some currencies pair more frequently than others. The primary currency categories in Online Currency Trading are Majors, Minors (also called Crosses), and Exotics. The 7 Major Pairs Are: Euro Vs. US Dollar British Pound Vs. US Dollar US Dollar Vs. Swiss Franc US Dollar Vs. Japenese Yen US Dollar Vs. Canadian Dollar Australian Dollar Vs. US Dollar New Zealand Dollar Vs. US Dollar In Currency Trading, the Majors are the most liquid and frequently traded, and account for almost 80% of all FX trades. These pairs usually have the narrowest bid (Buy) and ask (Sell) spreads due to the high volumes of buyers and sellers. The Spread is the difference between the Bid and the Ask prices. The term “PIP”, Percentage in Point, refers to a measuring unit used to describe the smallest price change that may be seen in any exchange rate. This is often the fourth digit of the currency pair following the decimal point. When there’s a change in the EUR/USD rate from 1.0530 to 1.0531, that is a one-pip shift. The amount of profit or loss a trader experiences per transaction is determined by the pip value. Exchange rates shift based on which currency of a pair is stronger at any point in time. The currency market moves very quickly, and these prices are provided by international banks, and updated in fractions of a second. Our blog post Market Volatility and How to Handle it in Forex gives more insight into this as well. The currency pairs that are less liquid, and do not trade against the USD are referred to as Cross-Currency Pairs; Some examples of these include the Canadian dollar and the Japanese Yen (CAD/JPY), the Euro and the Swiss Franc (EUR/CHF), and the pound sterling and the Australian dollar (GBP/AUD). Lastly, there are some unusual pairs, which are the least liquid and hence the least traded pairs on the forex market. Due to their low trade volumes, their Spreads can be very wide, and their prices can fluctuate substantially, as opposed to that of the Majors, which have tighter Spreads, lowering one’s trading expenses and increasing your profit potential. There are two categories in a currency pair; the first currency quoted in the pair is called the base currency. This is the currency a trader believes will change value in relation to the second quoted currency in the pair. The second currency is referred to as the quotation currency or counter currency. So, in the currency pair, EUR/USD, the EURO is the base currency while the USD is the quote currency. If a trader believes that the Euro will appreciate against the dollar, at the purchase rate of 1.3560/1.3562, a trader will need to invest 1.3562 in the quote currency, which is the USD, to purchase 1 unit of the base currency. On the other hand, if you were to sell 1 EURO, in anticipation of the Euro declining in value to the USD, you will receive 1.3560 USD. In Currency Trading, buying a currency pair is referred to as Going Long, while selling the pair, is referred to as Going Short. 1- The Euro/Dollar Pair (EUR/USD): Given that this combination stems from two of the world’s most powerful economies, it comes as no surprise that this is the most popular currency pair traded. This pair is also called “the Euro”. This currency pair is known for its high liquidity and incredibly high volumes of trade, making it prime for Day Traders. The pair is affected by economic releases both by the US Federal Reserve and the European Central Bank (the ECB). A strong dollar leads to a decline in the value of the pair, and vice versa. 2. The Dollar/Japanese Yen (USD/JPY): Traders often refer to this pair as “the Gopher”. With the Japanese Yen being a major currency across Asia, the USD/JPY pair is one of the world’s most traded pairs. Japan is one of the biggest net exporters in the world, and this is why many commodity traders and investors regularly need to convert their local currencies into the Yen. The Yen is also a popular currency for “Carry Trade” strategies, which is similar to the “buy low, sell high plan”. Due to a consistently low-interest rate on this pair, traders can profit from the interest rate differential with USD, amidst a stable exchange rate. 3. The British Pound Sterling/US Dollar (GBP/USD): Trading this pair is usually referred to as trading “the Cable”. Back in the 1800s, the exchange rates between these two currencies were transmitted via a large cable that ran along the floor of the Atlantic Ocean. Also a pair seen as highly volatile, with frequent variations in price, pip movements, and exchange rates, technical analysis is a must if you plan to trade this pair. During
Factors That Influence Price Movement in Forex Trading
The values of currencies on the forex market are impacted by the principle of Demand and Supply. Currency values are constantly in flux, regularly going up or down in value. Several years back, Gh¢1 was worth $5. At the time of writing, it is worth $12.30. This performance isn’t random but is attributed to a number of factors. The Forex Market involves buyers and sellers all over the globe participating in trillions of dollars of trade each day. This means that Macro-economic events around the world play an immense role in the forex market. Hence, traders don’t have to stick to trading the popular currencies just because they are popular, anymore; knowledge of the factors that influence price movements in the forex market informs what and when to trade. In this article, we will discuss the key factors that influence price movement in the forex market to help you become a better Forex Trader MACRO-ECONOMICS Primarily, the forex market is driven by major macro-economic factors. These factors influence foreign exchange rates, ultimately determining a currency’s value at any given point. A country’s economic health plays an overarching role in the value, and by extension, the exchange rate of its currency. Just like any other financial market, investors put their monies into economies with a positive outlook and growth potential. Hence, indicators that point to this outlook or potential will boost investments and increase demand for the said country’s currency. On the other hand, a negative outlook harms investments and reduces demand leading to a fall in currency price. Current events and new information are able to quickly affect a country’s overall economic health. It’s therefore important to exercise discipline and stick to your Trading Strategy as news of events and current affairs trickle in, so you are not swayed off course. CAPITAL MARKETS Arguably, the most visible indicator of an economy’s health is the global capital market since it is easy to take note of the release of public information on capital markets. With the steady, 24-hour up-to-the-minute flow of media coverage on the affairs and activities of corporations, institutions, and government entities, a rally or sell-off of securities originating from one country or another, is usually a clear indication of the future outlook of that economy. If you remember from our blog post – “Currency Trading and its 7 Pairs”, many economies are sector driven. Being a commodities market, for instance, the Canadian dollar is heavily correlated with commodities such as crude oil and metals. In effect, a rise in crude oil prices is likely to result in an appreciation of the Canadian dollar relative to other currencies. Commodity Trading similarly relies heavily on such economic data. The bond market and Treasury price fluctuations also affect price movement in the forex market, since fixed-income securities invariably rely on interest rates. Hence, a change in yields will directly affect currency values. INTERNATIONAL TRADE Another major factor that affects the forex market is the balance of trade between countries; the Balance of Trade (BOT) refers to the difference between the value of a country’s exports and the value of its imports at any given time. This forms the largest component of a country’s Balance of Payment, which is a statement of all transactions made between entities within a country and the rest of the world over a certain period. The trade balance serves as a representation of the relative demand for goods from a country; Thus, a country whose goods and services are in high demand internationally will typically have its currency appreciate in value. For instance, if you want to purchase goods from Japan, you will need to convert your money or whichever currency you hold into the Japanese Yen, and the increased demand for the Japanese Yen will lead to a rise in its value. On the other hand, countries with large Trade Deficits – which occur when a country’s imports exceed its exports at any given period of time – need to sell more of their currency for that of the currencies they need, in order to purchase the goods or services of other countries. This situation unavoidably has a negative impact on the value of an importing country’s currency. POLITICAL NEWS Another major factor that results in forex market changes is political news. A country’s political landscape plays a critical role in the perceived value of its currency, and by extension, the movement of prices in the forex market. One thing Forex Traders constantly monitor is political news and events in order to anticipate changes in the economic policies of national governments. These may include a cut or an increase in government expenditure or changes in regulations relating to specific industries or sectors of the economy. Uncertain outcomes following elections, for instance, always affect the forex market. Exchange rates usually react positively to wins by pro-growth or parties that are perceived as being fiscally responsible. Major referendums can also affect price movement in the forex market; a typical example is the Brexit vote, which had a major effect on the British Pound. In addition, the fiscal and monetary policies of governments in their economic decision-making, and central banks’ decisions that impact interest rates, also result in forex market changes. ECONOMIC STATISTICS Economic reports are the backbone of forex market changes. Gross Domestic Product (GDP) reports, which measure the total output of goods and services produced within an economy, for example, may present the most visible economic statistic, since this is the baseline of a country’s economic performance and strength. Another significant factor affecting the forex market in terms of economic statistics is inflation. This is characterized by increasing price levels of goods and services, and relatively falling purchasing power. If country A’s inflation rate is relatively lower as compared to that of country B, the currency of country A is expected to appreciate in relation to the currency of country B, with a higher inflation rate. Inflation can be a double-edged sword; In many cases, it is seen to
What is a LOT Size in Forex Trading
Forex is commonly traded in specific amounts called Lot Sizes, also referred to as Position Sizes, which are simply the number of currency units you want to buy or sell. Like buying 1kg of butter, or a dozen eggs from your local supermarket, anything you buy or sell is determined by a unit of measurement. Just like gold is traded in Kg. or Ounces, and oil in barrels. Trading a single unit of a currency pair isn’t viable; this is where Lots come in. To trade currency pairs, you need to understand the concept of a Lot in Currency Trading. To define it simply, a Lot is a unit measuring a transaction amount. In several of our blog posts, including our most recent, Currency Trading and its 7 Pairs, we make mention of Pips, which refers to the change in the value of one currency in relation to another. A pip is usually the 4th decimal place, and therefore a very minute measure. – To be able to benefit significantly from these minute changes in the value of currencies, you need to trade relatively large amounts of a particular currency pair. Pips enable you to trade these very tiny movements in relatively large volumes referred to as Lots. On your trading platform, when you place a Buy or Sell order, these orders are placed in Lot sizes. In forex trading, Lots are subdivided into 4: Standard, Mini, Micro, and even Nano Lot sizes. A Standard Lot translates into 100,000 units of a currency; a Mini Lot, 10,000 units; a Micro Lot, 1,000 units; and a Nano Lot, 100 units. (Each being a 10th of the former). Some brokers show the currency quantity in Lots, while others show them in the actual currency units. This is intended to give you more control over your risk exposure. So for example, you could choose to buy 100,000 Lots in base currency GBP/USD- That is a standard Lot. Or you could buy a Micro Lot of 1,000 GBP. LOT SIZE Standard Lot: 100,000 UNITS Mini Lot: 10,000 UNITS Micro Lot: 1,000 UNITS Nano Lot: 100 UNITS Lot Size Forex Calculator 1. Calculate Your Risk: It is necessary to calculate your risk in terms of percentages before you can establish the right Lot size to use. Normally, it is suggested that traders adopt the 1 percent rule. This means that in the event that a trade is closed out at a loss, no more than one percent of your overall account balance should be at risk. 2.Set A Stop Loss: With any open position, a Stop Loss should be established to indicate the point at which a trader desires to quit a trade in the event that the market doesn’t move in their favor. There are nearly limitless ways Stops can be put. When placing orders, traders would typically use major lines of Support and Resistance as guiding lines. You can use Set A Price Action, Pivots, Fibonacci Ratios, and other approaches to determine these values. 3. Calculate The Pip Cost: It is necessary to calculate the pip cost for your trade as the final step in choosing a Lot size. The cost of a pip is the amount of money you will gain or lose for each pip. As the size of your Lot grows, so does the value of your pip. On the other hand, if you trade with a smaller Lot size, your profit or loss per pip will be reduced as well. The EUR/USD Pair Will Be Used in Our Example Below: For context, if you buy EUR/USD, you’re speculating, per your analysis, that the Euro will strengthen against the dollar. If the price quoted is 1.3000, this means you’ll exchange €1 for $1.3000. To put it differently, you’ll need $1.3000 to buy €1. So, if you wanted to trade standard Lots, this means that at the current price, you’ll need 130,000 units of the quoted currency (USD) to buy 100,000 units of the base currency (EUR). A Mini Lot size is one-tenth the size of a Standard Lot, meaning that a Mini Lot is worth 10,000 units of currency in forex trading. The size of a Mini Lot also means both the profit and loss effects are lower than with standard Lots. In our EUR/USD exchange rate of 1.3000, one Mini Lot of the base currency (EUR), will be 13,000 units. Meaning you’ll need 13,000 units of the quoted currency (USD) to buy 10,000 units of EUR. A Micro Lot size is one-tenth the size of a Mini Lot, which is 1,000 units of currency. Pip movements result in cash swings of 1 currency unit, e.g., €1. Again, in our EUR/USD example of 1.3000, a Micro Lot will be 1,300 units; meaning you’ll need 1,300 units of the quote currency (USD) to buy 1,000 units of EUR. Micro Lots also require less leverage, so a swing won’t have as much of a financial impact as compared to larger Lot sizes. A Nano Lot size is, you guessed it- one-tenth the size of a Micro Lot, which is equal to 100 units of currency. In effect, 1 Nano Lot of the base currency EUR will be 130 units, so you’ll need 130 units of the quoted currency USD for 100 units of EUR. The good news is although it’s relatively easy to calculate Lot sizes, you normally won’t need to calculate the Lot size yourself. A good trading platform, like Geldex, will calculate and tell you what you need to know. It will also be clear on what Lot sizes are available when placing a trade- whether Standard, Mini, Micro, or Nano. How to choose the Best Lot Size in Forex Trading After your choice of Forex Broker, a very important individual decision you will have to make when you begin currency trading is finding the Lot size that best balances opportunity and risk. The Lot size you trade directly impacts how much a market or pip move affects your account; for instance, a 100-pip move on a small trade
Training 200 NSS Personnel in Digital Finance
As part of the celebration of the world’s women’s day, WOMEN IN FOREX GHANA in collaboration with GELDEX INVEST is set to train 200 national service personnel in digital finance in the central region to broaden their employment scopes The theme for the World international women’s day 2022 dubbed ‘BREAKING THE BIAS,’ is most prevalent and accurate theme for the current pandemic situation today. It is a wake up call for women globally to venture into more challenging roles in all facets of life and breaking free from the gender stereotypes. A challenged world is an alert world and indeed the 21st century woman must gear toward building a pandemic proof career and livelihood, especially through the route of the Digital economy and not be perturbed by opposition. The digitalized front for decades has produced most opportunities to individuals that dared to challenge the norms of corporate career choices but delved into showcasing their various talents and skills online. From challenges/crisis comes changes, innovation and creativity, unfortunately Women globally especially in Ghana are under represented in the digitalized world and as such, WOMEN IN FOREX GHANA saw the need to use this special day for women to campaign and persuade women to challenge their status quo through learning and training in the area of financial literacy as a vehicle to financial and self sufficiency by indulging in digitalized skill set as Forex trading and not get caught up with stereotype of the industry being for men only. WOMEN IN FOREX GHANA is the 1st forex association of professional forex traders and analysts in Ghana and West Africa involved in training the financial analysis skill set and the incubation of forex traders through mentorship, nurturing, providing funding for traders, etc with emphasis on the youth, especially women. The organisation has successfully organised,trained and mentored atleast 2,000 youth through her digital finance training summit tours for the last 5years. WOMEN IN FOREX GHANA has recently launched a 10year digital finance educational initiative dubbed:THE ELEVATE GHANA FOREX PROJECT to train over 10,000 more youth especially women to indulge in the biggest global market with the acquired skills to explore the career opportunities the sector bestows. The organisation also recently launched a forex charity ball as part of its annual schedules dubbed:LOVE IN THE FOREX in collaboration with Geldex lnvest, Lolyfx Ltd and blooming Trading Ltd as part of its corporate social responsibility to give back to the community. This years charity ball targeted three charitable organisations namely: The menarche pad a girl project, Coverme worldwide and Maternal rights Ghana. Women in forex Ghana with this initiatives and in their quota attempts to positively contribute to the government’s policies of reducing illiteracy and poverty which also goes a long way to globally contributing to the United Nations sustainable development goals of Economic growth,financial literacy, reduction of poverty and women empowerment just to mention but few and most importantly debunk the misconceptions and myth about digital finance, forex trading and online digitalized skills. WOMEN IN FOREX GHANA is opened to collaborating and networking with other organisations with same inclinations. The organisation is led by Miss ANNOR SIKA ASANTEWAH, a certified financial analyst and the CEO of SKY TRIP CHRONICLES, a brand that’s spearheading a service called l TRADE N TRAVEL WITH SIKA. This brand encourages forex trading enthusiasts to learn trade earn create value and make memories by going on educational trips yearly, the brand intends to create digital forex nomads who can work without borders and have time freedom to explore the world and its beauty./p> The objective is to produce disciplined and patient traders and encourage the habit of compounding and investment. It is about time we change our money game..LETS BREAK THE FINANCIAL BIAS WOMEN!!
The 4 types of forex traders
As extensively discussed in several of our previous articles, in addition to fundamental analysis, Forex Trading Investment requires you to learn the elements of analyzing forex charts; and staying disciplined. Having said that, it helps to chart out your own Trading Plan, and stay focused as much as possible, on that. The online forex market attracts different types of Traders, all of whom operate with distinct trading strategies, relying on various techniques to predict and speculate in the market. Various trading techniques adopted by different types of forex traders are mainly based on the knowledge of the forex market and the trading strategy that fits their goals and personality types. In this article, we present and discuss the features of the 4 main types of Forex Traders you will find on the market. DAY TRADERS This is arguably the most common type of trader there is. As their name implies, Day Traders, or Intraday Traders, as they’re also called, operate on a day-to-day basis. This type of Trader opens and closes trades throughout the course of the day. In general terms, they operate with price action characteristics to buy, sell and hold trade positions. They tap into the price movements that occur within a day or a particular trading session; A currency’s price volatility and average day range, are elements that Day Traders take seriously. Thus, before a Day Trader initiates a trade, it’s essential that the pair in question have sufficient price movement. Since trading is established on the grounds of entering and exiting a trade position at a fast rate, volume and liquidity is very crucial. In effect, pairs with a small daily range or volume won’t be of much interest to Day Traders. For Fundamental analysis, this category of traders focuses on events that are likely to cause short-term market moves. They are typically very knowledgeable and highly skilled in the market they choose to invest in. They employ a variety of techniques and make trading decisions quickly to ensure their success. To avoid the risk of slippage and overnight funding costs, Day Traders close out all their positions at the end of every day, leaving no positions running overnight. If you have a good grasp of price analysis and enough time on your hands to analyze the forex market and charts when the market opens, monitoring it throughout the day, you will find Day trading suitable. Major Elements of Day Traders, Aside from Closing All Positions at The End of The Day Include: Engaging In High-Volume Trading Ability To Focus on Technical Patterns A Focus on Quick Turnover Rate Pairing Volatile Currencies Which Can Show Large Movements Within Short Time Fram Trading Through Day Averages and Characteristics Rather Than Long-Term Strategies The success of the Day Trader depends on establishing how to trade and having a good operation and risk management plan in place. Since trading occurs within a short span of time, the ability to make quick decisions is of the essence. POSITION TRADERS On the opposite end of the spectrum from Day Traders, are Position Traders. This type of trading investment is long-term where you can take and hold positions over a period of several months, or even years. Unlike Day Traders, Position Traders are less interested in short-term price fluctuations, and rather pay attention to weekly and monthly price action analysis. Although they combine both fundamental and technical analyses, Position Traders often adhere more strictly to fundamental analysis, while technical charts are a tool to help determine the best entry and exit points. When trading stocks for instance, Position Traders will pay more attention to earning reports, stock splits, reorganizations and acquisitions, looking out for associated opportunities. The Distinguishing Features of Position Traders Include: Holding Fewer Trade Positions (Sometimes Only a Handful A Year) Making Decisions by Taking Economic Models, Governments, And Interest Rates into Account Working Across Major Currencies, As Well As Favorites of Emerging Markets Seeking To Capture the Bulk of a Position’s Movement in The Hope That It Will Appreciate Over Time Focusing More on Fundamental Analysis On the positive side, Position Trading makes lower demands on a trader’s time, as compared to other trading investment styles; many Position Traders work on not more than 10 positions over a year, giving them enough time to develop other aspects of their portfolio. The draw-down, on the other hand, is that Position Traders tend to rely on a bet that a certain trend will continue, and when it doesn’t, the risk of long-term capital losses can be huge. SWING TRADERS Somewhere in between Day and Position Traders are Swing Traders, who make a profit investing in trading by holding a position anywhere from overnight to several weeks. While Position Traders hold trading positions over a longer period, Swing Traders hold their trades over the medium term; This involves price swings and holding their trades over the course of several weeks. As their name suggests, these traders buy when the market begins to swing upwards, and sell when this price swing halts, stops, or tops out. Swing Traders make use of fundamental analysis, the intrinsic value of a pair, price trends, patterns, and technical analysis to search for financial instruments with short-term price momentum. The goal of this type of trading investment is to trade on large price moves daily by spending longer time frames (weeks to months) monitoring the pair in question. If you do not have all the time to analyze forex charts in as detailed a manner throughout the day, but only for a couple of hours, this trading strategy may be most ideal for you. Swing Traders Operate with The Following Principles: A Focus on Global Trends Rather Than Daily Fluctuations A Blended Approach to Fundamental and Chart Patterns Analyses; They’ll Look at Macroeconomics as Well As Daily Trends A Focus on Short-Term Price Momentum to Capitalize on Upward Swin Placing More Positions in Liquid Currency Pairs Like the Pound and the Dollar Capturing High and Low Extremes
What to know before planning your strategy
Online Forex Trading is NOT GAMBLING. There’s a reason why only a small percentage of CFD traders are profitable over the long term; Without a clearly defined Trading Strategy, it’s very easy for retail investors to lose their trading capital within a short frame of time. There’s an old expression in business, that if you fail to plan, you plan to fail. It may sound cliché, but people who are serious about being successful, including forex traders, should take heed to this as if they were cast in stone; Developing a successful forex trading strategy is a must. Without carefully planning your strategy, it is almost impossible to know the markets to trade, and the price at which to take a profit (or loss). There are several facets to developing a successful CFD trading strategy, and ultimately any trading plan for retail investors, especially beginner traders, must be a SMART one – Specific; Measurable; Achievable; Realistic, and Time-Bound. To keep it simple, a trading plan is an organized approach to executing a trading system developed by an outlook and analysis of the market, while factoring in risk management and personal psychology. The main idea behind planning your strategy is to develop a set of rules you’re going to adhere to, as well as how you’re going to implement them; Hence, a trading plan should outline your investment goals, risk tolerance, and strategy for achieving these goals. It would be difficult to stay disciplined and stick to your chosen strategy without a trading plan. It takes time, research, and a lot of effort to develop a trading strategy that works in the financial markets; and while there are never any guarantees of success, by carefully planning your trading strategy, you will have eliminated a major roadblock. Planning your strategy enables you to define the parameters of your ideal trade, and make logical trading decisions, helping you avoid making emotional decisions in the heat of the moment. Successful forex trading strategies tell you what to do so you can maintain discipline and consistency while keeping losses in check. In this article, we discuss the important things to keep in mind before and while planning your trading strategy. DISASTER MANAGEMENT 101 In our article, Facts to Know About the Most Successful Traders in Africa, we discussed the fact that Forex Trading is a business, and if you want to succeed you have to treat it as such. Watching a few YouTube videos, buying a charting program, and then going ahead to start trading with real money immediately, is more of a recipe for disaster and not a forex trading strategy. A trading Strategy is a comprehensive decision-making tool for your trading activity. It helps you decide the What, When and How Much of your online forex trading. A successful forex trading strategy should be developed with clear signals that are not subject to change – while you’re trading- but subject to re-evaluation when the markets are closed. As market conditions change, and as your trading skills also improve, you can make modifications and adjustments. Try to employ your personal trading style and goals, and not blindly copy other people’s strategies, as this may not reflect your personal characteristics. No two forex trading strategies are the same, as no two traders are exactly alike. Hence, each approach will reflect important factors including trading styles and risk tolerance. The essential components that a trader must consider when developing a successful forex trading strategy include the following: SKILL ASSESSMENT – EVALUATE YOURSELF: You want your strategy to be as tailored to you as possible. Consider your goals, expertise, strengths and weaknesses, and preferred trading style (We discuss this at length in our blog post – The 4 Types of Forex Traders). The critical question to ask yourself is whether you are ready to trade forex online. Have you acquired enough Forex Trading Education? Have you tested your strategy on a Demo Account or by Paper Trading? And do you have confidence it will work in a live trading environment? Can you follow your signals without hesitation? Trading the market is a battle of Give-and-Take; the Pros who prepare themselves, take profits from the masses, who, due to lacking a strategy, tend to “give money away” as a result of costly mistakes. In view of this, there is so much you can learn from our Forex Trading Academy, where we have real forex trading experts and analysts to get you on the right path. MENTAL PREPARATION Your state of mind is critical when it comes to engaging in online Forex trading. You should ask yourself: How do you feel? Have you had enough sleep or rest? Do you feel up to the challenging task ahead? If you do not feel emotionally and psychologically ready to take on the market, we advise you to take the day off. Doing otherwise, is almost an assurance of loss, especially if you’re angry, preoccupied, or simply distracted from the task at hand. You can refer to our post – Common Mistakes Forex Traders Make for an in-depth discussion on this. Some successful traders adopt a mantra they remind themselves of, to help get them ready as they begin to trade. You can find one for yourself that puts you in the trading zone too. It’s also important to free your trading area of distractions; Remember, as we keep saying, Trading is a business, and must be treated as such. Thus, distractions of any kind can be very costly. DO YOUR HOMEWORK AND SET REALISTIC GOALS Far too many beginner Traders enter the forex market with visions of grandeur and begin to trade with very little Forex Trading Education and no trading plan whatsoever. Before the market opens, to help you plan your strategy, find out what is going on around the world, especially on the Economics, Business, and Political fronts. Find answers to questions such as – Are S&P500 Index Futures Up or Down? Because Futures contract day and night,
Market volatility and how to handle it in forex trading
You’ll often hear it said that the forex market is the most liquid financial market in the world, and indeed, it is. Liquidity refers to how active a market is, which in Online Forex Trading, is determined by the number of active traders and the volumes they are trading. We discussed this at length in our article – “The Benefits of Online Forex Trading”. As financial centers around the world open and close throughout the day, liquidity fluctuates, having a direct and major effect on Market volatility. Periods of volatility are inevitable in any market, and forex is no exception, which can tend to frustrate new traders; for this reason, understanding market volatility in forex, as you begin to trade, is very necessary. You might see a currency pair’s price as high or low as it can get before buying or selling, but the very nature of volatility means that it could go up or down even further, and when you’re dealing with prices that change by the minute, timing is critical. In this article, we discuss the ways by which one can determine market volatility, as well as the five strategies that can be used both to preserve your capital, and hopefully profit from rising and falling market volatility. Market volatility, in simple terms, refers to the price fluctuations of assets. In Forex Trading, it refers to the frequency and extent of currency price changes- either up or down. When the price of a currency pair fluctuates rapidly, widely up or down, it is said to have high volatility. On the other hand, low volatility refers to relatively stable currency pair prices, with slow or small changes in value over time. It is therefore essential to take note of how volatile a currency pair is before entering a trade. Value fluctuation of assets over time is a normal feature of every market; be it stocks or currency pairs. However, often in Online Forex Trading, price fluctuations can become a lot wilder than usual, varying greatly from its mean position, as many Traders buy and sell at different prices. Market volatility in Forex Trading, as indicated above, is characterized by wide ranges in price, high volumes, and more trading in a particular direction. A deeper analysis of volatility – both Historical Volatility and Implied Volatility – using the most common market volatility formulae – Bollinger Bands; The VIX; Average True Range (ATR); Relative Strength Index (RSI); and established Support and Resistance Levels – further suggests that there is a higher probability of a falling market when volatility is high, while lower volatility is more common in rising markets. Experienced Traders who Invest in Forex Trading over the long term, know that given the interconnected nature of the online forex market, volatility can be experienced at any time; Smooth-Trending or Range-Bound Markets can be interrupted by sharp shocks and unwanted or unexpected periods of volatility. Warren Buffet is quoted as having once said “Look at market fluctuations (Volatility) as your friend, rather than your enemy”. There are numerous factors that cause volatility in markets; these include sudden announcements from Central Banks, Country-Specific Economic News, Company news, unexpected production/earning results, and general market sentiments. HOW TO HANDLE VOLATILITY IN FOREX TRADING 1- Educate Yourself and Get Knowledge of Market Sentiments The importance of Education in Forex can never be overemphasized. With Online Forex Trading, there’s ALWAYS room to improve on your knowledge. You need to do your research and constantly review your trades, both when it appears difficult and when trading seems easy. In one of our earlier blog posts- Why Education and Training in Online Trading is A Must Before Trading Forex – we discussed at length the importance of acquiring and mastering the skill set needed for online forex trading, and how to make use of Fundamental and Technical Analyses. It’s an essential skill to master and requires a Trader to look into Market Volatility News in forex, including the various releases put out by governments, central banks, and other major players of the Forex Market. To get a head start in the market, you should keep up with market volatility news and your forex calendar, and educate yourself on how the market responds before and after news releases. 2- Learn to Manage your Risk and Focus on Small Trades It’s of absolute necessity that you understand the risk involved with every trade you take. Knowing the potential returns on each trade by having a good idea of all the possible Entries and Exits, forces you to systemically visualize and compare your trades. As a Trader, you should constantly uphold certainty over risk; When market volatility is high, it is advised to reduce your leverage and position sizes. During volatile markets, you could also place smaller trades, thus committing less capital per trade. You can also repeat trades that work for you; picking one side to trade, and trading on that side until it stops working for you. Low volatility markets, in particular, may not offer the most ideal or most profitable trading conditions, as it’s not certain which direction the market is moving in. The best thing you could do in a low-volatility market is to consider taking a pause from trading until a clear direction is seen, or until you can determine clear Range-bound conditions to utilize your range-bound strategy. 3- Apply Volatility Risk Measures to Your Orders in Advance In one of our previous articles – Facts to Know About the Most Successful Traders in Africa– we talked about how important it is to use a Stop Loss, as this is an indication of the exact amount of risk you are willing to take on a trade even before you enter it. You can also consider using Long-Term Averages to reduce the chances of a price spike when volatility is high, instead of using Moving Averages to set levels. With low-volatility markets do not expect to make huge orders; Instead, focus on small order sizes with
The Benefits of Online Forex Trading in Africa
With financial markets becoming accessible to more and more people, Forex Trading Opportunities have grown exponentially over the past two decades. Online Foreign Exchange Trading, commonly known as FX Trading, refers to the practice of buying and selling currency values with the aim of making a profit. Being a global market, FX Trading is conducted all over the world, with New York, London, Tokyo, and Hong Kong serving as the major financial hubs with the largest markets. Having previously been a preserve mainly of large financial institutions such as banks, multi-national corporations, and the wealthy few, Online FX Trading has become increasingly popular with many who have internet access and a fair knowledge of the basics of FX Trading, owing to its relatively easy entry requirements and suitability for beginners. Although retail online forex trading has for a long time been considered a secondary source of income, many who have treated it as a primary source of income, have gained financial freedom by participating in it, given that a 9 to 5 job alone, most often than not, does not offer us the financial stability and freedom we desire. Although a 9 to 5 may offer you some job security, that doesn’t seem to be holding much ground in this post-pandemic economic situation we’re faced with now. In this article, we discuss the benefits of trading forex in Africa, both for individuals and for their respective countries as a whole. 1. A LARGE AND GLOBAL MARKET TRADEABLE 24-HOURS-A-DAY The sheer size and scale of the online Forex market sits at the top of the list when it comes to the benefits of online trading. As the world’s largest financial market, about $6 trillion on average, is exchanged daily. At ALL hours of the day, traders in every part of the world, are buying and selling currency pairs, making forex a truly global marketplace, with a very wide scope of profitability. In our very first article, How to Make Money from Forex in Ghana, we indicated the fact that, unlike other financial or capital markets, the forex market does not need a physical location to operate from, but rather, operates via an electronic network of corporations, banks, and individuals engaged in trading one currency for another. This makes it possible and convenient for forex markets to operate 24 hours a day, 5 days a week, across different time zones and financial centers. What makes this possible is the overlap in trading times of major sessions. Where most stock exchanges are open from 9am-4pm (depending on the country from where it operates), the FX Market operates continuously from the start of the week on Monday morning in New Zealand, till Friday afternoon New York time when it closes. Since it operates this way, the online FX market is not subject to any centralized exchange system; As long as there’s a market open somewhere in the world, you can trade. This is great news for those who want to start off trading on a part-time basis. 2. FLEXIBILITY AND WIDE RANGE OF CURRENCY PAIRS The very first point serves as an excellent springboard for another benefit of trading forex in Africa, which is the ability to participate in trading activities from anywhere on the globe. As already stated above, with market sessions, one is not limited to traditional office hours. Thanks to technological advancements, you don’t need to be tied to a desk, staring at six screens of charts to gain a decent handle on the market. With the additional element of a wide range of currency pairs to trade in, there is the flexibility to trade in your chosen currency pair at your own preferred time. Due to the flexibility Forex trading offers, a lot more people with regular jobs are choosing online day trading as an additional source of income. If you trade online full-time, you get to set your own hours and be your own boss. You can work from the comfort of your home, making profitable trades, while giving you leverage to spend time with your family and loved ones. Given this opportunity, you’re able to make time for other priorities, which a regular job may not fully allow you to. You can work even when you’re on a trip to some Island; all you need is a smart device with a good internet connection. That is the beauty of forex trading – the ability to make money while on the move, anywhere, anytime. 3. ACCESSIBLE AND BEGINNER FRIENDLY Yes, you read right. The Online Forex market can be beginner friendly if you make the commitment to acquiring the knowledge and equipping yourself with the required tools. First-Time traders who can only afford to make smaller investments can easily enter the forex market. Trading with the Best Forex Broker grants you access to real-time market pricing, news, price charts, tools, and strategies. As mentioned earlier, accessibility is one of the biggest advantages of forex trading; Compared to other capital markets, it does not require a large initial investment, making it easy to enter, and accounting for its popularity among beginner and even hobbyist traders. As a beginner, a good forex broker offers you a range of educational sources and Demo Accounts allowing you to practice and hone your skills on the market without the risk of losing real money. Demo Accounts essentially offer you a “Try-Before-Purchase” test run. They give you the opportunity to get used to a trading platform, familiarize yourself with market movements, and develop a risk management strategy, all without making any financial commitments, in a simulated live trading environment. It’s critical to bear in mind, however, that regardless of your investment capital, Knowledge and skill are the bedrock of successful profitable FX Trading. 4. HIGH LIQUIDITY Online Trading benefits include High Liquidity. In capital markets or trading terms, Liquidity refers to the ease with which an asset can be bought or sold. Combined with the high volumes and 24-Hour-a-Day activity, the global scale of
Geldex Marks 1st Anniversary with Digital Finance Training for over 300 Tertiary Students
Geldex Invest, a multi-regulated broker entity, as part of its 1st anniversary commemoration, has embarked on a campaign to train over 300 undergraduates from selected universities in ‘Digital Finance’. The four selected universities to benefit from the initiative are the Koforidua Technical University, Valley View, Ghana Telecommunication University, and the University of Ghana, with some students already enjoying the hands-on training. Geldex believes that it is important the youth are included in decision-making and given appreciative opportunities for work, training, and to innovate. It intends to train these 300 undergraduates on the capital market, and the need to indulge and explore career and financial paths in forex trading. The capital market, especially the foreign exchange market, is the most liquid market on earth. Global Gross Domestic Product (GDP) of the forex market in 2019 amounted to roughly US$142trillion, with the entire worth of the market standing at US$2.4quadrillion, and with over 170 currencies being traded. This was reported by the Bank of International Settlement. The population of sub-Saharan Africa is projected to double by 2050, as indicated by the United Nations and currently, 60 percent of the population is under the age of 25, making Africa the world’s youngest continent. The burgeoning youth population is both an opportunity and a challenge for the continent. Internet, digital penetration, and engagements of African youth increased from 24.4 percent in 2018 to 90 percent in 2020 indicated by ITU Digital world (Child Online Protection Organisation). But most of the activities online by the youth are not very productive even though great career and financial opportunities abound online. Such a high number of young people is an opportunity for the continent’s growth, but only if these new generations are fully empowered and trained to realise their best potential. The United Nations estimates that 16 million young Africans are facing unemployment. On average, 11 million young people join the African labour market each year, yet the continent generates only 3.7 million jobs annually, a gap too wide to be ignored. It is to this effect that Geldex Invest, a multi-regulated broker, as part of its 1st commemoration is embarking on this Digital Finance programme for the youth. The International Market Analysis Research and Consulting (IMARC) group predicts a compound annual growth rate of six percent for the forex industry in the next five years. The industry is green in Africa, especially in Ghana – the more reason why there is need to study and train to bridge the educational and capacity gap in the hope of future opportunities. Geldex Invest has made its mark in the African Financial industry with its operations in this short time. The official sponsor of the African Financial Traders awards 2021, in collaboration with Women in Forex Ghana, under her initiative ‘The Elevate Ghana Forex Project’, has trained over 400 youths in forex education across four regions since the beginning of the year, 2022, and continues to impart financial literacy into the youth. The goal is to adequately equip the youth with the skill set that is relevant in this pandemic era for a better livelihood, gear the youth toward productive online engagements, and reduce cybercrime while helping government’s policy to reduce unemployment.
