Education
Education
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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
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
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
Education and Training in Online Trading
If any material, person, or enticing advertisement on the internet has given you the impression of Forex Trading as a “nothing for something” venture, we wish to appeal to you to disabuse yourself of that notion. Before you begin trading forex online, it is important to adapt to how the market operates, as well as other conditions correlated with Forex Trading. Indeed, forex traders can reap highly profitable results. However, that is after a significant amount of time acquiring knowledge, building strategies, and perfecting their trade. In light of that, it is of absolute necessity that beginners who want to trade the forex market invest in forex courses and education. The money spent here is an investment, and combined with your dedication and skills, you will definitely reap the benefits. For long-term advancement, 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. It has been proven that as a result of a lack of proper education, a significant number of beginners lose their trading capital. All kinds of online trading academy courses abound on the internet by many “trading gurus” who promise to teach you to make profits within a day or just a few hours, with one or two workshops, seminars, or a short training course, where they’ll usually tell their stories, how much they earn, and how simple it is for you to earn as much; and yet, only a very small fraction of beginners who take these courses actually benefit from them. This is most likely because many of these “Trading gurus” giving these online trading courses themselves may have come out of the lot who must have lost their capital due to lack of proper education and due diligence. Realising they are unable to make money from active trading, they now resort to teaching newbies in an attempt to recover some of their losses. That is why the trading loss statistics for beginners are that bad. In this article, we will discuss why a good comprehensive forex education is a must before trading online, and how self-education can also contribute to making you a successful forex trader. Even if you have some knowledge of Forex Trading, the market is continually evolving, and trading abilities must always be improved upon. Forex Trading, Not a Get-Rich-Quick Scheme If you have ever wondered why certain professions earn more money than others, the answer is quite simple; the amount of money a particular job pays is directly proportional to the time and effort spent in acquiring the skills necessary to perform it, in addition to years of gaining more experience in the said field or area. This is true for every venture or profession in the world, including Forex Trading. In our previous article, we discussed some facts and characteristics of successful forex traders, which includes possessing analytical skills. Sifting through massive forex data in a few minutes, and analysing the data to spot trends and make decisions at break-neck speed, is a critical characteristic of successful forex traders. This is a skill that has to be developed by concentrated efforts and honed by constant practice over time. A good forex training course, be it in-person at a forex trading training institute or an online forex trading academy, should teach you the language of forex; the terminologies used, including Leveraging, Margin Concepts, Bids, and Order Types. In addition to that, you should also learn about fundamental and technical analyses, and lastly, about trading psychology, which involves emotional intelligence, patience, commitment, and discipline. Understanding the Basics It’s impossible to trade without any knowledge of the basics and having in-depth trading knowledge and a trading plan is paramount to a successful online Forex Trading career. Forex education enables the beginner to grasp the basics of online trading. Online FX Trading has its own language, which conveys a lot of information in just a few words, with distinct terminologies like Pip, Lot, Spread, etc. In addition to its terminology, basic calculations, such as deriving a direct quote from an indirect quote, are also included in basic forex education and training courses. It’s up to you, as a beginner or even professional trader, whether you want to learn bits and pieces of possibly confusing and contradictory information over the internet, or at one go, in a streamlined, expert-developed, properly structured, coherent form, as offered to you by the Geldex Forex Training Institute. Here at Geldex, we offer you a wide variety of resources, 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. Fundamental & Technical Analysis Market analysis is an essential part of Online Forex Trading. There is fundamental and technical analysis in trading forex online. Fundamental analysis refers to one’s ability to interpret macro news, which has a huge impact on the forex market, as they are related to specific countries, economies, and by extension, their currencies. When key market players like governments and central banks release data about macro-economic indices such as inflation or unemployment, it causes currencies to move as well. To an uneducated forex trader, such news may bear no particular significance, but to a trader who has gone through training with a good forex education course, such mutually exclusive events could be reason enough to overturn a solid trading strategy. The ability to interpret news reported at the macro level, and to make informed speculation on the possible direction of a currency, is a skill you will acquire by going through forex training. As a forex trader, the times at which such news is reported may be the time to enter or exit the market, as massive volatilities at these times push prices to extreme highs and lows, creating the possibility for traders to make a fortune, given the right action. To be
The Six Common Mistakes Forex Traders Make
The Online FX Trading world can be full of unpleasant surprises for those with huge expectations but little preparation. With its low entry barrier, the online foreign exchange market is one of the world’s most accessible Day Trading markets. With the knowledge, a computer or smartphone, a stable internet connection, and a few hundred dollars, you should be able to start Day Trading. However, the relatively easy entry is not a promise of making you a millionaire overnight. Effective online Trading can be a rewarding and exciting venture, but if one isn’t careful, it can also be rather discouraging. Avoiding certain forex trading mistakes, whether you’re new to online FX trading, or have several years of experience, can go a long way to keeping your trades on the right track. The forex mistakes to avoid, discussed in this article, are the reasons many new forex traders do not succeed as much as they would have liked to. Starting Out Without Any Education and A Trading Plan Learning about forex is integral to a trader’s success. Online forex trading must be considered as any other profession if you want to be successful at it. Surgeons, for instance, do not perform heart surgery without a 5–7-year degree in medical school, with core surgical training in a hospital. The most common online forex trading mistake to avoid is believing you can succeed without any trading education or experience. Learning the ins and out of the business, then learning how to read and interpret the charts, is crucial to becoming profitable. Unless you educate yourself, trading will be disastrous for your account. The most efficient way to become a successful online forex trader is to access the experience of successful traders. We discussed this at length in our article, The Importance of Forex Education before Trading Online. Investing in forex trading courses, with a well-established forex trading academy, that will give you the right knowledge about online forex trading, and how the markets work, is indispensable. Geldex Invest offers you a wealth of educational content in a variety of forms: courses (both online and in-person), blogs, and webinars, all geared to helping you master forex trading online. Avoid trading on feelings and whims. Before entering a trade, it’s important to do your homework. Many traders make the mistake of thinking they don’t need a trading plan now, so they will create a trading plan “later on”, or after they start making money, or they can simply “keep it in their heads”. On the contrary to these rationalizations, as a beginner trader especially, you need a trading plan to guide you and solidify your trading strategy. A trading plan outlines your strategy, defining what and when you will trade. It should include what markets you will trade, at what time, as well as the time frames you will use for your analysis and taking trades. Your trading plan should include your risk management strategy, outlining how you will enter and exit trades for both winning and losing trades. Currency pairs are closely linked to national economies and are affected by a number of factors. Since they are traded almost every day of the week, it implies that there is usually something going on that will move the markets. You should be aware of upcoming events that could affect your trade and have the ability to forecast which way these events could swing the markets. The mistake some traders make as they follow events, is not paying attention to what the technical indicators are showing in comparison to the fundamental event analysis. Harboring Unrealistic Expectations A common mistake that online forex traders make is harboring unrealistic expectations. This is also one of the mistakes that beginner traders usually make. This usually results from some unscrupulous trading advertisements, enticing you to become a millionaire overnight by investing just a small amount. Images of “grand” lifestyles, represented by mansions, the latest model vehicles, and travels mostly accompany such advertisements. It is not impossible to make such huge returns on small investments, but at what risk level will one be able to achieve such a feat? The best way to avoid unrealistic expectations is to have a trading plan. If it yields steady results, we advise that you stick to it, as even a relatively small gain can become large with forex leverage. In effect, as your capital grows over time, a position size can be increased to ensure higher returns. As a new investor, the best way to approach investing in trades, as we have indicated in previous articles, is through a measured approach; going for the smaller yet consistent kind of returns that are not overly high-risk. As you gradually become a more experienced trader, you will be able to increase your risk level after some time, enabling you to master online Forex Trading. Risking More Than You Can Afford The practice of taking on excessive risk does not necessarily guarantee excessive returns. A very common forex mistake many traders, especially Beginner traders, make, is failing to understand how Leverage works. Some forex traders make the mistake of not taking their time to familiarize themselves with both Margin and Leverage, and therefore put more capital at risk, than they had originally intended to or planned. Leverage – and its commensurate risk – is a double-edged sword that amplifies the downside as much as it adds to potential gains. The benefits are clear, but the risks are often neglected. When you have a small initial deposit and make a disproportionately big trade based on the leverage you choose, you can experience sizeable losses if the market moves against your position by even just a small amount. A key part of your risk management strategy is to determine how much of your capital you’re willing to risk on each trade. Ideally, day traders should risk not more than 1% of their capital on a single trade. This means that a Stop Loss order will close out your trade
Digital finance, forex trade industry a boom or doom to the African economy?
Africa has seen a paradigm shift in the fronts of business operations in the past few years, especially in 2020 at the peak of the COVID-19 pandemic brouhaha. The African continent is creating an entirely new developmental path harnessing the potential of its resources and people, as highlighted by the World Bank Group report. Most economies in the Sub-Saharan region swiftly gravitated toward digitalization, especially in the financial sector. Globally, all economies are fiercely pushing to find their stands in the digital ecosystem to broaden their technological and digital horizons to keep up with the ever-changing demands on products and services and in all aspects of the government and corporate world. The digital economy thrives on technology or smart gadgets but whilst it is estimated that almost 45 percent of Africans are with smartphones and on social media, unfortunately, about 85 percent of the population of about a 1.216billion Africans have no knowledge of what the digital finance industry and online trading are all about. Africa has been tagged as a lucrative destination for foreign investment even though as a whole the continent is dealing with economic challenges; growth has been quick and substantial. It is emerging as a new frontier for forex /online trading. Per the Bank of International Settlement survey in 2019 on foreign exchange and the counter market report, South Africa’s forex daily volume was US$2.21billion with a total turnover for all forex instruments standing at US$21billion. Nigeria’s daily volume stood at $314 US million whiles Kenya’s daily volume stood at US$192.66million thus making South Africa’s rand rank top of the traded currencies in Africa and 18th globally. Reports indicated that the retail forex and online market in South Africa have high rocketed from $14billion to $21billion between 2013 and 2016 and this was attributed to impressive stands and liberal political views on forex matters. Unfortunately, the online trading and the blockchain technology industry are met with hostility in Africa as it throws governments out of their control due to a lack of proper fundamental grounding in the capital market. A robust regulatory and strict licensing regime with massive technical know-how is required to tap into this trillion-dollar industry which currently possesses the ability to save Africa from drowning in unemployment and cyber criminality. Why are African Governments shying away from Foreign Exchange Market/Online Trading? There is a big question that needs to be answered. Which is ‘why are African governments shying away from the biggest financial industry in the world (foreign exchange market/online trading)? The Business and Financial Times in publication on March 1, 2022, headlined ‘Regulatory Dilemma Makes Bank of Ghana Resolute Against Cryptocurrencies’, is a statement that needs probing as it said a lot about the development of the country’s capital market./p> The digital finance industry mostly dominated by the foreign exchange market (online trading) has been considered a nonstarter in most African countries. Could this be due to a lack of robust regulation framework, lack of technological know-how, or just conservative bias and fear of change? The Forex Suggest released a report stating that the forex market in 2021 is worth US$2.409quadrillion with 7.6 trillion volumes of daily transactions. Experts say Africa represents the most exciting growth opportunity for international forex brokers. Thank goodness for brokerage firms such as Geldex Invest and the likes operating in other African countries to massively impact financial literacy training across the regions despite the limitations in the region The central banks must innovate and move faster to find their feet in providing regulatory frameworks that will help the continent tap into this huge financial stream whilst it still flowing seamlessly Central banks intervene in the foreign exchange market to achieve a variety of overall economic objectives such as controlling inflation, maintaining competitiveness, or maintaining financial stability As Leonard Oniriuba, Bank of Risk Management in Development Economies 2016, rightly put it, the dynamics of the foreign currency market and deals are quite intriguing as the market dwells on the volatility of securities and financial instruments and is inherent in some measure of risk. Yet the market also presents interesting risk-return paradoxes that can make any economy profitable. What the Future Holds for African Economies Reports indicate that 85 percent of economies are adopting digital currency and blockchain technology. African countries like Ghana and Nigeria are frontiers in the digital currency movement. Banks are fast drifting towards online banking operations, the digital economy has become the new order and human involvement is at this point at a disadvantage It’s paramount to emphasize that robotics and automatic engineering are taking over human Labour in the next few years looking at the fast adaptation of technologies the world over Although the broader market has experienced a variety of unexpected negative effects due to the COVID-19 pandemic and the Russian Ukraine war, the forex market has remained relatively unscathed. The volumes of trading increased due to the volatility the pandemic brought on. The increased volatility globally brought a huge number of opportunities to forex traders. The Bank of international settlement survey 2020 indicated that the global gross domestic product (GDP) in 2019 amounted to roughly US$142 trillion -meaning the turnover of the forex market is almost 17 times larger The forex trading market dwarfs even the largest stock exchanges in the world for example the National Association of Securities Dealers (NASDAQ) which has a daily volume averaging around US$200billion. Over 170 currencies and thousands of stocks, indices, derivatives, etc are traded online on the global forex market. Some forecasts such as the IMARC group predict a compound annual growth rate of six percent in the next five years globally. Can we now say a great financial breakthrough found Africa in rather unsettling circumstances? Article by: Gifty Annor-Sika Asantewah, Financial consultant-Geldex lnvest.
Digital Finance and the Foreign Exchange Trading Industry: A Boom or A Doom To The African Economy?
According to Foresight Africa Series 2019, Africa contributed an annual revenue of $1.2billion to the capital market. This amount, in comparison to the global capital market revenue contribution, is abysmal. Despite the meager capital market contribution, Africa continues to dominate the world as the continent has the most youthful population in the world, the report says. The youthful population presents important opportunities for businesses in an environment of slow global growth. Africa has seen a paradigm shift in the frontier of business operations for the past few years, especially in 2020 during the pandemic Brouhaha. The continent is creating an entirely new developmental path harnessing the potentials of its resources and people, a report from World Bank Group highlighted. Most economies in the Sub-Saharan region swiftly gravitated toward digitalization, a dramatic push from traditional commerce to e-commerce, especially in the financial sector. Globally, all economies are fiercely pushing to find their feet in the digital ecosystem to broaden their technological and digital horizons to keep up with the ever-changing demands on products and services and in all aspects of the government and corporate world. Almost 45% of Africans are with smartphones and are on social media yet 85% of the population of 1.216 billion Africans don’t have any idea of what the digital finance industry and online trading is all about. Reports indicates that 85% of economies are adopting digital currency usage and blockchain technology. African countries like Ghana and Nigeria are frontiers in the digital currency movement. On the macroeconomic front, digital currency strengthens the control of governments over its currency, facilitates easy cross-border trading transactions, and enhances the formulation of macro and micro economical policies. Banks are fast drifting towards online banking operations, the digital economy has become the new order, and humans at this point are disadvantaged. It’s paramount to emphasize that robotics and automatic engineering are taking over human labour in the next few years looking at the fast adaptation of technologies the world over The big question is why are African governments shying away from the biggest financial industry in the world (foreign exchange market/online trading)? The Business and Financial Times in their 1st March 2022 report headlined “Regulatory dilemma makes bank of Ghana resolute against cryptocurrencies “, a statement that needs probing as it said a lot about the development of a country’s capital market. The digital finance industry mostly dominated by the foreign exchange market (online trading) is a non-starter in most African countries. Africa has been tagged as a lucrative destination for foreign investment. A report from forex suggests that even though the whole continent is dealing with economic challenges, growth has been quick and substantial. Could this be due to a lack of robust regulation framework, lack of technological know-how, or just conservative bias and fear of change? The Forex Industry released a report stating that the forex market in 2021 is worth $2.409quadrillion with 7.6trillion volumes of daily transactions. Experts say Africa represents the most exciting growth opportunity for international forex brokers. Brokerage firm such as Geldex Invest is leading the way by massively impacting lives through financial literacy training programmes across the regions in spite of the limitations in the region. Central banks intervene in the foreign exchange market in order to achieve a variety of overall economic objectives such as controlling inflation, maintaining competitiveness, or maintaining financial stability. The precise objectives of policy depend on factors including the stage of a country’s development, the degree of financial market development and integration, and a country’s overall vulnerability to shock. The dynamic of the foreign currency market and deals are quite intriguing as the market dwells on the volatility of securities and Financial instruments and is inherent in some measure of risk. Yet the market also presents interesting risk-return paradoxes that can make any economy profitable indicated by Leonard Oniriuba(Bank of Risk Management in Development Economies 2016). Although the broader market has experienced a variety of unexpected negative effects due to the COVID-19 pandemic and the Russian Ukraine war, the forex market has remained relatively unscathed. In fact, the volumes of trading increased due to the volatility the pandemic brought on. The increased volatility globally brought a huge amount of opportunities to forex traders. Banks of international settlement survey 2020 indicated the global gross domestic product (GDP) in 2019 amounted to roughly $142 trillion -meaning turnover of the forex market is almost 17 times larger. The forex trading market dwarfs even the largest stock exchanges in the world for example the National Association of Securities Dealers (NASDAQ) which has a daily volume averaging around $200 billion. Over 170 currencies and thousands of stocks, indices, derivatives, etc are traded online on the global forex market. Some forecasts such as IMARC group predicts a compound annual growth rate of 6% in the next 5years globally Africa is emerging as the new frontier for forex /online trading. With over 41 currencies spread across 51 countries, the continent broad retail and spot forex trading has enormous potential. Per the Bank of international settlement survey in 2019 on foreign exchange and over a counter market report, South Africa’s forex daily volume was $2.21billion with a total turnover for all forex instruments standing at $21billion. Nigeria’s daily volume stood at $314million whiles Kenya’s daily volume stood at 192.66million, thus making South Africa’s rand rank top of the traded currencies in Africa and 18th globally. Reports indicated that the retail forex and online market in South Africa rand rocketed from $14billion tog $21billion between 2013 and 2016 and this was attributed to impressive stands and liberal political views on forex matters. Unfortunately, the online trading and the blockchain technology industry is met with hostility in Africa as it throws governments of their control due to lack of proper fundamental grounding in the capital market. A robust regulatory and strict licensing regime with massive technical know-how is required to tap into this trillion-dollar industry which currently possesses the ability to save Africa from drowning in unemployment and
WIF targets $5,000 for deprived communities
By Julius K. SATSI, Accra The Women in Forex (WIF) Ghana with its partners have expressed optimism towards raising US$ 5,000 to support the needy in deprived communities through its Elevate Ghana Forex project. The fund, raised through benevolent individuals, will help train 1,000 youth in Forex through the “Elevate Ghana Forex” project and support the needy in deprived communities across the country. The Elevate Ghana Forex project is the initiative of the WIF Ghana to educate young people in forex trading and help alleviate unemployment and poverty. The Founder and President of WIF Ghana, Madam Annor-Sika Asantewah disclosed this during the maiden charity ball held in Accra at the weekend. She said the fund, which is expected to be generated from February to September, would be disbursed through a project and two non-governmental organisations (NGOs) to help the deprived communities She said the funds raised would be disbursed through Menarche-Pad a Girl project to help alleviate menstrual poverty – a situation where girls practice poor hygiene during menstruation. The two NGOs include Cover Me Worldwide to help children gain skills in reading ability and Maternal Right Ghana to help women and children during child delivery. Madam Asantewah urged benevolent individuals to donate towards the fund, which would help most youth out of employment through free forex trading for the 1,000 youths, targeted in three universities across the country – University of Cape Coast, Valley View University and the University of Ghana. She said the organisation intends to send the “Elevate Ghana Forex” project to the Volta, Northern, and Eastern regions. She said calls had come to extend to the Ahafo region, which it would consider in subsequent years since the project is an annual one. The Mayor of Belmopan in Belize, Central America, Her Worship Mayor Sheran Palacio, who graced the occasion, urged Ghanaians not to abandon trades and traditions of the older generation in the quest to go after modernity. She said Ghanaians and Africans must not relent on tilling the soil as it hungers to give humanity its produce As the first female Mayor in her country, she advised young females to take education seriously because it has the power to transform their lives, opening them to the numerous opportunities that exist. The Chief Executive of Loly Fx, Ms Ruth Ofori said: “forex trading is not for the faint-hearted” but was quick to add that it is the aim of the Elevate Ghana Forex project to help the youth to gain a fundamental understanding of the forex market. Ms Ofori, who is a Forex facilitator with the project said, many Ghanaians are now getting to know and appreciate the dynamics of forex trading, unlike previous years. She said: “People are broadening their horizon on forex trading and trying to know what it entails and how they can go about to make some money.”
