Education
demo
Deaching of the great explorer of the truth the builder
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
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!!
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,
Choosing The Best Broker To Trade With
Spurred on by greater internet accessibility, more investment knowledge, and proliferation of forex brokers, online Forex trading has risen in popularity in recent years in Africa, with more and more traders emerging day-in-day-out. To trade the forex market online, choosing the best forex broker, and one you can trust, is a vital first step, as your broker will form a critical part of your trading equation, and essentially be your business partner. Online forex trading is gaining traction and momentum in Africa as a whole, and Ghana in particular, and the challenge many beginner traders are faced with, is finding a legitimate broker they can trust; one who is not only reliable but also within arm’s reach; as close and real as can be. Forex brokers are an integral part of the forex trading equation, and a trader’s aim should be to find the best forex broker available. If you’re new to forex trading, you may get confused by the flood of advertisements from different firms. That is why we have simplified it, helping you take the guesswork out of your search for the best forex broker to trade with. A forex broker is an entity that acts as an intermediary between institutional or individual clients and the global forex market. In addition, the forex broker’s job is to ensure your orders are executed. The forex broker market is saturated with many options, and it has become necessary to apply certain metrics in choosing the right forex broker to attend to your needs. Not all forex trading brokers are regulated, and it’s very important to be wary of unregulated firms, to avoid being scammed or your trading capital being done away with. Take your time to find a reliable forex broker to ensure your money and trades will be handled appropriately and to best industry practices. 1. REGULATORY COMPLIANCE Simply, is the broker licensed and regulated by a reputable regulatory authority. As obvious as this may be, you will be surprised at how many unlicensed and unregulated forex brokers there are. The best forex brokers in Africa are licensed and regulated by industry regulators to grant professional and retail clients the ability to trade foreign currencies by offering them a secure online trading platform. Due to concerns regarding the integrity of a broker, and the safety of clients’ funds, accounts should be opened only with brokers who are duly licensed. Choosing a broker who is licensed to offer the services you need, helps you avoid potential scams, and reduces the risk of losing your money should the broker go bankrupt. Being a dominantly virtual industry, many people do not really know who they are dealing with, because everything is conducted digitally. You should evaluate a broker’s license and compliance with industry regulations, and not pay too much attention to glitzy websites. We advise you to stay away from forex brokerage firms that do not display their regulatory license numbers openly, as this may be a red flag. Many forex brokers these days also tend to show license numbers that are not theirs, hence, to be completely sure, you should visit the regulatory authority’s website to check if the said license number is true, and belongs to who they claim it belongs to. If you’re in Ghana or Africa, you can find a trustworthy broker licensed and regulated by either one of the following: CYSEC-Cyprus (As an EU member state, CySEC’s financial regulations and operations comply with the European MiFID financial harmonization law), the FSC-South Africa, ASIC-Australia, or the FCA-United Kingdom. Forex trading companies in Ghana are most likely to be regulated by any of these reputable industry regulators, any of which can render confidence that your broker is legit. As a globally recognized brand, regulated in the most advanced capital market jurisdictions across the globe, Geldex Invest is not only licensed, but also offers you the ultimate package of an excellent trading experience, and exceptional customer responsiveness. We are licensed and regulated by many of the leading financial regulatory authorities for international brokerage firms. 2. CHOICE OF DIFFERENT ACCOUNT TYPES It’s a plus when a broker offers you a variety of accounts to choose from for online forex trading. This means they can cater to traders with different financial abilities, needs, and aspirations. The best forex trading companies in Africa recognize the power of choice goes a long way. Closely related to the above, is the offer of Demo Accounts. Trading on a Demo account is essential before trading on a live account. Trading on a Demo account gives you the opportunity to trade in real market conditions, but with virtual money. This means it’s absolutely risk-free. The main purpose of the Demo Account is to know the ins and outs of online forex trading, put your strategy to test, and discover your strengths and weaknesses before you go unto a live account. We encourage beginners to trade on demo accounts for only so long; enough to get your feet wet and move to a live account. 3. VARIETY OF TRADING INSTRUMENTS The more tradable instruments a broker offers, the more opportunities are unveiled for you. When choosing a forex broker, go with one that doesn’t only offer the major currency pairs, but also the Minors and Exotics, as well as precious metals and other commodities, for the purpose of diversifying your portfolio. Seeing as trading comes with risks, it’s important to manage these risks in an adequate manner. The best Forex Trading companies in Africa give you the opportunity to diversify your portfolio this way, so as to manage risk in the most effective manner possible. Gold, for instance over the years, has proven to be a very popular trading instrument during times of political and economic instability, such as is currently being experienced globally. If you find yourself in one of the largest gold-producing countries in the world, and own a smartphone, you have no excuse not to learn to trade gold on the forex market. 4.
Choosing The Best Forex Broker To Trade With In Ghana And Africa
Spurred on by greater internet accessibility, more investment knowledge, and proliferation of forex brokers, online Forex trading has risen in popularity in recent years in Africa, with more and more traders emerging day-in-day-out. To trade the forex market online, choosing the best forex broker, and one you can trust, is a vital first step, as your broker will form a critical part of your trading equation, and essentially be your business partner. Online forex trading is gaining traction and momentum in Africa as a whole, and Ghana in particular, and the challenge many beginner traders are faced with, is finding a legitimate broker they can trust; one who is not only reliable but also within arm’s reach; as close and real as can be. Forex brokers are an integral part of the forex trading equation, and a trader’s aim should be to find the best forex broker available. If you’re new to forex trading, you may get confused by the flood of advertisements from different firms. That is why we have simplified it, helping you take the guesswork out of your search for the best forex broker to trade with. A forex broker is an entity that acts as an intermediary between institutional or individual clients and the global forex market. In addition, the forex broker’s job is to ensure your orders are executed. The forex broker market is saturated with many options, and it has become necessary to apply certain metrics in choosing the right forex broker to attend to your needs. Not all forex trading brokers are regulated, and it’s very important to be wary of unregulated firms, to avoid being scammed or your trading capital being done away with. Take your time to find a reliable forex broker to ensure your money and trades will be handled appropriately and to best industry practices. REGULATORY COMPLIANCE Simply, is the broker licensed and regulated by a reputable regulatory authority. As obvious as this may be, you will be surprised at how many unlicensed and unregulated forex brokers there are. The best forex brokers in Africa are licensed and regulated by industry regulators to grant professional and retail clients the ability to trade foreign currencies by offering them a secure online trading platform. Due to concerns regarding the integrity of a broker, and the safety of clients’ funds, accounts should be opened only with brokers who are duly licensed. Choosing a broker who is licensed to offer the services you need, helps you avoid potential scams, and reduces the risk of losing your money should the broker go bankrupt. Being a dominantly virtual industry, many people do not really know who they are dealing with, because everything is conducted digitally. You should evaluate a broker’s license and compliance with industry regulations, and not pay too much attention to glitzy websites. We advise you to stay away from forex brokerage firms that do not display their regulatory license numbers openly, as this may be a red flag. Many forex brokers these days also tend to show license numbers that are not theirs, hence, to be completely sure, you should visit the regulatory authority’s website to check if the said license number is true, and belongs to who they claim it belongs to. If you’re in Ghana or Africa, you can find a trustworthy broker licensed and regulated by either one of the following: CYSEC-Cyprus (As an EU member state, CySEC’s financial regulations and operations comply with the European MiFID financial harmonization law), the FSC-South Africa, ASIC-Australia, or the FCA-United Kingdom. Forex trading companies in Ghana are most likely to be regulated by any of these reputable industry regulators, any of which can render confidence that your broker is legit. As a globally recognized brand, regulated in the most advanced capital market jurisdictions across the globe, Geldex Invest is not only licensed, but also offers you the ultimate package of an excellent trading experience, and exceptional customer responsiveness. We are licensed and regulated by many of the leading financial regulatory authorities for international brokerage firms CHOICE OF DIFFERENT ACCOUNT TYPES It’s a plus when a broker offers you a variety of accounts to choose from for online forex trading. This means they can cater to traders with different financial abilities, needs, and aspirations. The best forex trading companies in Africa recognize the power of choice goes a long way. Closely related to the above, is the offer of Demo Accounts. Trading on a demo account is essential before trading on a live account. Trading on a demo account gives you the opportunity to trade in real conditions, but with virtual money. This means it’s absolutely risk-free. The main purpose of the Demo Account is to know the ins and outs of trading, put your strategy to the test, and discover your strengths and weaknesses before you go into a live account. We encourage beginners to trade on demo accounts for only so long; enough to get your feet wet and move to the live account. VARIETY OF TRADING INSTRUMENTS The more tradable instruments a broker offers, the more opportunities are unveiled for you. When choosing a forex broker, go with one that doesn’t only offer the major currency pairs, but also the Minors and Exotics, as well as precious metals and other commodities, for the purpose of diversifying your portfolio. Seeing as trading comes with risks, it’s important to manage them in an adequate manner. The best Forex Trading companies in Africa give you the opportunity to diversify your portfolio this way, so as to manage risk in the most effective manner possible. Gold, for instance over the years, has proven to be a very popular trading instrument during times of political and economic instability, such as is currently being experienced globally. If you find yourself in one of the largest gold-producing countries in the world and own a smartphone, you have no excuse not to learn to trade gold on the forex market. TRADING PLATFORM These include: More chart frames
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
Facts to know about the most successful traders in Africa
Like most great things in life, there are truly few shortcuts to become successful in forex trading. But learning from someone who has the knowledge and expertise in advanced forex trading, definitely gives you a lot of leverage to succeed in advanced online currency trading. If you have started trading forex in Ghana only recently and want to ensure you do it right, then you have stumbled on the right article. One of the principles for achieving success in any area, is following those who have achieved success where you seek to, and in this article, we will share some facts and characteristics of the most successful forex traders in Africa, and hope you can imbibe them as well. Many of these characteristics are key traits that the most successful forex traders have used to master the market and generate consistent profits month in and month out. The Forex market is an ever-changing entity, where each day presents us with different and unique scenarios for trading the market. Therefore, to trade successfully, it’s important to understand that the forex market is fluid and very dynamic, and the question many ask when they begin this journey is what characteristics or attributes are needed to enable them stand a good chance at becoming successful and profitable independent forex traders There is no single formula that all successful forex traders use to ensure profitability on the forex market. Trading is both Art and Science, and the idea that success comes overnight could not be farther from the truth. It takes time to learn the ins and outs, manage your risk and refine your skills and yourself as a trader. That is how the best traders in Ghana and the world over, have done it 1- Begin with a plan in hand You have probably heard the saying “failing to plan, is planning to fail”. Your trading plan doesn’t need to be complicated; you can start by including basic guidelines like – Your Entry and Exit Level Triggers – Position Size – Stop Loss – Take Profit The most successful forex traders in Africa treat advanced online currency trading as a business; complete with plans, daily routines, schedules and obligations. Before you trade, it’s important to recognize the value of good preparation. Most successful businesses always begin their business journey with a good business plan; a formal statement revealing the goal of the business and the guidelines to reach those goals, without which achieving those goals will be difficult. The same applies to the business of advanced forex trading. Successful traders adhere to a set of guidelines to help them execute consistently profitable trades that will help them reach their income goals. This will prevent you from making decisions on a whim. Remember the saying “plan your trade, and trade your plan”. 2- Having Realistic Expectations Some traders may show off their rewards from forex trading, but won’t tell you about the years of effort they put in before they found success. The fact is that, like any other profession, becoming a successful forex trader takes time. The best Forex Traders in Ghana know that forex trading is not a get-rich-quick scheme. While some may see it as a sprint, the most successful forex traders in Africa see it as a marathon, with small rewards accumulating as the race goes on; not with the goal of becoming a millionaire overnight. Trading with high expectations of how fast you will make money is a bad start for any trader. Although the market can make some huge moves than you anticipate sometimes, you should not expect to invest $250 in your trading account, and make $1,000 each trade. If your goal is to double your money every day, it sounds great but it’s not realistic. A realistic goal must be attainable; within your current capabilities. The best realistic goals are short-term goals; make your first goal a small one, and then continue to increase your them as you experience success. The most successful traders stay flexible with their Take Profits, sometimes settling for less, if indicators show that’s all they can take out of the market at that moment. 3- Being Analytical Having an analytical mind is one of the most important facts about the best traders. This means being able to figure out some simple math quickly, understanding percentages, and calculating things like Risk: Reward ratios. The good news is that it can be learned if you don’t already have this. And once you have learned it, and practised it for some time, you are well on your way to becoming one of the most successful traders in Africa, and the world. Being analytical of the market also behoves on you to be analytical of your own performance. You can do this by keeping a record of your trades. At the end of each month, quarter or year, your trading account will most likely be in one of three main categories: your trades either made a profit over the period; were roughly break-even; or lost money. Irrespective of the category you fall into, keeping and reviewing a track record of your trades, is key to building on your strengths and working on your weaknesses. The best Forex traders in Ghana have used this to improve their performance and become successful. 4- Being Disciplined and Patient Discipline is crucial when you’re trading Forex. Our definition of discipline when it comes to advanced online forex trading is to determine your exit strategy even before you enter the trade. Discipline is also the ability to “pull the trigger” when your system indicates to do so. The market gives you infinite opportunities to trade and once you decide which position you’re taking, you should enter your stop loss and take profit orders. This also reflects the ability to be patient until your system triggers an action point. Good online traders are disciplined and patient, and trade as professionals. Becoming a successful forex trader requires strong discipline, and it
How to Make Money From Forex Trading in Ghana
If you’re in Ghana, and are looking to earn passive income through an online source, trading the forex markets is a viable tool to enable you to make money online. Forex Trading, also known as FX trading or more commonly, currency trading, refers to the buying and selling of international currency pairs. As with any trading activity, the aim of Forex trading is also to make a profit, mainly by exchanging one currency for another with the expectation that the prices will alter in favour of one against the other. Currently, the fastest growing sector of the online FX market comprises individuals. Other major sectors include Securities dealers and large commercial banks (collectively referred to as the interbank market), smaller banks, hedge funds, and multinational corporations. Unlike other financial or capital markets, the forex market does not need a physical location to operate from, but rather 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, five day a week across different time zones and financial centres. What makes this possible is the overlap in trading times of major sessions; hence the best way to make money online, working from home. The factors that contribute to the Forex market being the largest include the facts that it’s the most liquid market; has easy round-the-clock access; and low cost to partake and invest in. In addition, you can exit even more quickly when you take a plunge, and experience set-backs, which are occurrences that come with every trade. Below are pointers to help you earn money online from home in Ghana: 1. Find the right Forex Broker The importance of trading with a most trusted and reliable forex broker cannot be overemphasized. As you set out to earn money online through forex trading, look for a broker who is licensed and regulated in multiple jurisdictions, and offer good customer support. You should also find a broker who follows the rules of the industry, and has a track record of good trading practices. It’s important to ensure that your broker complies with the regulatory framework intended to preserve the integrity of the forex market. It’ll also be in your advantage to find a broker that offers competitive super-tight spreads like Geldex. Geldex Invest is licensed and regulated by the most leading financial regulatory authorities for international brokerage firms. Geldex also has the technology to ensure up-to-date platforms and market integration systems for clients, as well as strong order execution; ultra-low latency and minimal slippage courtesy of our customized, built-for-purpose advanced technology and dedicated servers. Additional features that make Geldex the best are: – Autonomous physical presence in Ghana – Easy Account Opening and Verification Procedure – Funding In Local Currency (GH¢) – Deposits And Withdrawals Through Mobile Money & Local Banks – Negative Balance Protection – Exceptional Customer Support (You’re Assigned a Personal Account Manager) – Great Promotions and Bonuses for You 2. Learn the basics of Forex Trading & Understand the Market Like any money-making venture there is, the Forex market has its own unique characteristics, and it is essential to learn the basics of the trade. For Forex trading, this ranges from acquiring knowledge of the operative terminologies to familiarizing yourself with the geo-political and economic factors affecting the currencies you choose to trade online in. In order to earn money from forex trading, the following are a few of the terminologies, you need to enhance your knowledge of: – Currency Pairs: It’s important to note that currencies are always traded in pairs (e.g., EUR/USD; GBP/JPY; EUR/AUD; NZD/JPY, etc.), and are further categorised into 3 major types- Major Pairs, Minor Pairs, and Exotic Pairs. The EUR/USD remains one of the most traded pairs in the forex markets, and for beginners, we highly recommend that you trade in major currency pairs which hold higher liquidity and narrower spreads such as the USD and the EUR. In effect, narrow or tight spreads translate into limited loss exposure for you. – PIP (Percentage in Point): This refers to the smallest unit of currency price movement. If you take a good look, you’ll realise currency pairs are always quoted with 4 decimal places. A pip is thus equal to 0.0001. In some rare cases, like with the USD/JPY pair, however, a pip is equal to 0.01 – Base Currency and Quote Currency: The currency featured on the left side of the currency pair is the base currency, whereas the quote or counter currency is featured on the right side of the currency pair. Hence, in our EUR/USD example, the EUR is the base currency, while the USD is the Quote currency. Bid and Ask Price: The Bid price is the buying price of a base currency, while the Ask price is the price for selling the Base currency. In practical terms, it is the price at which a Forex Trader wants to sell a currency pair for, and an Ask price is the price at which a Forex Trader will buy a currency pair at. Example EURUSD BID: 1.1500 ASK: 1.1502 The Bid price is always lower than the Ask price Spread: This simply refers to the difference between the Bid and Ask price. When you buy a currency pair, you’re in practical terms, buying the base currency and selling the counter/quote currency. The reverse applies when you sell a currency pair. Put more simply, the difference between the amount you need when buying a specific currency, and the amount you receive when selling it, is what is known as the spread. – Lots: Trading currencies takes place in Lots, with there being 3 types of lot sizes, based on the units; Micro Lot (1,000 units), Mini Lot (10,000 units), and Standard Lot (100,000units). – Fundamental and Technical Analysis: the skill to read and analyse the market, is a critical aspect of earning money online by trading the forex market. Whereas fundamental analysis
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
E-levy to Temporarily Cause Disruptions in the Stock Market- Analyst Predicts
Gifty Annor-Sika Asantewah, a financial analyst and advisor to Geldex Invest, has predicted that the eventual roll out of the e-levy will have surging consequences on the Ghana Stock Exchange (GSE) in the short run. According to the analyst, many local investors got caught in a bears trap at Ghana Stock Market since the government started the implementation of the e-levy, noting that investors should gear up for more bearish run, especially this week and the subsequent ones. “The announcement of the e-levy saw a bearish run in the telecommunication stocks, particularly MTN Ghana stocks few months back as investors sentiments dampened. Now if you watch the market, there is a surge in market activity as a result of the implementation of the electronic levy… In the interim, the stock market will suffer the more as investor will rush to avoid more liabilities by liquidating stock assets. “MoMo users are running to Mobile money operators and banks to cash out moneys to avoid exorbitant charges on transactions. This is definitely causing a panic and the telecom sector stocks will continue to go down till further notice.” 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. -Gifty Annor-Sika Asantewah Miss Annor-Sika observed that though the e-levy did not have immediate impact on the nation’s biggest telecommunication stocksMTN Ghana, it might nosedive this week. “It is a bit surprising that the telecommunication sector stocks, particularly MTN stocks showed some unusual resilience in the first three days after implementation of the e-levy by recording no change in share prices. However, the increased in the trading activity means that it might be actually winding up for a big fall in the coming days. You can see that the MTN shares is currently priced at GH¢1.00. I am pretty sure it will fall below the 1 cedi mark in the coming days.” -Gifty Annor-Sika Asantewah The Cause of the Unusual Resilience of MTN Stocks The financial advisor to Geldex Invest, moreover, attributed the unusual resilience to the fact that because the issue of the e-levy was going on for months and weeks before it was finally implemented, investors were prepared and made decisions on what to do with their shares long before the implementation finally kicked in. “Another reason for the MTN Ghana shares not going down immediately after the implementation may be due to the long periods of the e-levy impasse. Most investors may actually took decision on their investment long ago. If you remember, MTN before the budget was read was doing well. It was one of the fastest growing stocks with share price of around GH¢1.80. But since the budget reading and the subsequent announcement of the electronic levy, MTN sector stocks plummeted to the current 1 cedi it finds itself. It is no coincidence that it lost over 70 pesewas in that short period. Profit taking Investors may have taken their profit long ago.” -Gifty Annor-Sika Asantewah Total Volume and Value to Decline Ms Annor-Sika added that the E-levy will cause a decline in the total volume and value of transactions since Ghanaians are not in favor of the tax. “Definitely, the total transactions will definitely go down. It is no coincidence that the revenue target from the e-levy was revised downward. Government knows this will happen.” Though the analyst was of the view that taxation forms a major part in government revenue mobilization, she stated that government should have listened to Ghanaians in this regard and look elsewhere to raise revenues. “Taxation is a legitimate way to enhance an economy, but the current rise in standard of living against stagnating wages and widening brackets of low income earners and downsizing makes the timing very problematic. “Auditor general revealed that $340million was lost to financial mismanagement, corruption, etc. Government should have looked at sealing those loopholes and other means of raising revenue.” -Gifty Annor-Sika Asantewah
