Forex trading in Nigeria: What to start with?
Many come to the foreign exchange market and quickly leave it, without realizing what’s what. Many brokerage companies say that there is nothing easier than Forex trading in Nigeria. Sometimes this is true, but much depends on what a person expects from trading in the foreign exchange market.
What to start with? What specs of Forex the one should know? Why may Alpari Forex Nigeria be useful to you? Keep reading to know all the secrets.
Where Should a Beginner Start?
There are a lot of books and video lessons on this subject. All of them are more or less informative, but they are not always oriented towards those who do not yet understand anything in the foreign exchange market.
The path from a beginner to an independent and successful trader should consist of approximately the following steps:
- Basic theory (books, video tutorials on stocks);
- Choosing a broker (one of the most important steps);
- Definition of a trading strategy and trading style;
- Trading on a demo account;
- Strategy debugging;
- Deposit and trading as such.
Forex is a market with high risks, and everyone can lose. It is necessary at an early stage to understand that there will be losses, and they are an integral part of successful trading. It is best to realize this when trading on a demo account. But in the best way, this will be fixed when trading on a cent or micro account.
Choosing a Broker
Choosing a broker is one of the most crucial steps when starting Forex trading. The parameters that are important to consider when choosing a broker:
- The minimum amount to start trading on Forex;
- Reviews about the broker from already trading traders;
- Availability of trading tools;
- The absence of a broker in the “blacklists;”
- Admissibility of the use of trading robots.
This is the base you need to consider, and if the broker meets at least three parameters, you can try to start working with the platform (the exception is the fourth point). When you are more or less familiar with the broker’s terms, it is recommended that you move on to developing own strategy and style of trading.
There are many styles and methods of trading. But there are some basic parameters by which you can determine whether the trading style suits you or not. We can distinguish intraday trading, positional, and averaged.
- Intraday trading is associated with great stress and risks. A trader opens short trades and tries to catch a trend on minimal fluctuations and thereby earn finance. The most preferred pairs are EUR/USD, GBP/USD and other volatile instruments.
- Average trading involves a more measured style. Transactions can be open from day to week; the risks are much less. But for this, it is necessary to conduct a more detailed fundamental and technical analysis, as well as constantly receive information about force majeure situations and monitor the release of the news.
- Positional trading is characterized by the fact that most open transactions can last for weeks or even months. The calculation is made on the prospect of market development, and at the exit, positional traders can get very serious profits. But for the correct assessment of the pivot, movement and market endpoints, a very in-depth fundamental analysis is required to make a relatively plausible forecast.
To analyze the situation, traders use fundamental and technical analysis. The former involves the use of news and economic reports to predict the market direction. At the same time, technical analysis is based on an assessment of previous charts and potential market development based on trading indicators and graphical figures.