Month: November 2014

As the Kenya Forex Firm always does, I am delighted to be bringing you information about forex trading that you won’t find anywhere else on the internet.

Today, I will be reviewing one of the forex brokerage firms that is spending a fortune in Adwords advertising and in paying forex affiliates to get their word out there.

If you have not been living under a rock for the past few months, you might have heard of Easy Forex. What you might not have heard is whether all the hype about the brokerage firm is for real or there are skeletons hiding deep in the closet waiting to swallow you and your credit card in one single swoop.

So, in this review of Easy Forex brokers, I will be giving you the inner details about the forex broker who follows you everywhere like a shadow.

[sale_products per_page="1"]

Who/What is Easy Forex

Easy Forex is a forex brokerage firm that is based in Cyprus, Greece (honestly, stop looking for a forex broker in Kenya. We do not have them in Kenya. The Central Bank of Kenya even considers it illegal to trade forex in Kenya!)

Easy-Forex has been in operation for the past 11 years, having started operations in 2003.

In my opinion (after thorough research and reading reviews from other forex traders) Easy-Forex is a well-rounded forex brokerage firm that is well suited for beginner traders.

The trading platforms supported by Easy Forex include Desktop MT4 trading, Mobile Platform Trading and Web Interface. If you are in Kenya, and you own a strong Android Phone, iPhone or tablet, there is not reason why you should not invest in forex trading now.

Minimum Operating Balance

One of the excuses that I get from my Kenyan friends is that they cannot afford the capital to start trading forex. Of course, many of them do not take the opportunity to research and find brokers who do not require substantial deposits to operate an account.

While many brokers require a minimum operating balance of $200, Easy-Forex has a minimum deposit requirement of a mere $25 (about 2500/= Kenya shillings). Now, tell me what is that if it is not cheap.

On top of that, Easy Forex offers 20% bonus on all deposits that you make up to $2000. I have heard that forex brokers who offer bonuses are scammers but I have been operating with such a broker and I am yet to have any issues trading or withdrawing my profits.

To get your 20% bonus deposit, click on this link when you are opening your account.

How to Fund Your Account

With Easy Forex, you can use your Visa or MasterCard Branded ATM Card (from whichever bank) to deposit the money into your account. Alternatively, if you already use online payment gateways, you can deposit funds via Web Money, Skrill or Neteller.

Note that the mode of funding you use will be the same mode through which you will receive payments. I therefore recommend that you use your ATM card or Skrill to fund your account.

Leverage

Leverage is what makes forex trading so lucrative yet so risky. With leverage, you can control trades worth thousands of dollars with minimal deposits in your account.

Easy Forex offers a maximum leverage of 1:400. That means if you deposit the minimum $25, you can control trades worth $10,000 (24 multiplied by 400). Your profits will be likewise magnified. So will be your losses.

Caution: If you are new to forex trading, I do not advise you to use such a high leverage. Start with a leverage of 1:10 or no leverage at all. This way, there is very little chance that your account will be wiped clean by a trade gone sour.

It is also important that you learn the basics of risk management and risk/reward ratio before you start using high leverage on your account.

Easy Forex Demo Account

A demo forex account is invaluable in your entire career as a forex trader. Unlike what many traders assume, demo accounts are not limited to newbies.

Whenever I learn of a new forex trading strategy or I want to test the viability of a new technical indicator, I use my demo account to simulate the real trade.

Easy Forex offers a demo account loaded with virtual (fake money) which you can use to practice and learn forex trading.

The only shortcomings with the Easy Forex demo account is that it is limited to 30 days only. There is however a cool way to lengthen the life of your demo account.

Open a demo account here.

Verdict

 

Sheeroh Kiarie, blogger and webpreneur at WorkOnlineKenya, recently interviewed one of the top forex traders in Kenya. Ken Githaiga, who started trading forex before many of us did, had a lot of valuable and inspiring tips for both advanced and beginner forex traders.

Needless to say, I had a tremendous time reading the insightful interview. Kudos Sheeroh on a job done so well.

One of my key takeaways from the interview was this:

“I use only one indicator (The exponential moving average) with candlesticks on the four hour chart.”

If you have not read the interview, this was Ken’s response when asked what approach/strategy he uses to trade forex. It also brings me directly to the topic of my blog post today.

The Only Technical Forex Indicators You Need

There are so many forex trade indicators being released into the industry every single day. There are so many approaches to technical and fundamental analysis. You would literally need about a decade to study and implement all of them.

The good news is that you DO NOT NEED all these forex trade indicators and strategies to be a successful forex trader. The best forex traders find an indicator that works best for them, and they stick with it through all the winning and the losing trades.

If your approach to forex trading is jumping ship once you sense signs of a losing trade, then you will be in for more and more losses when you move from one strategy to another.

Ken Githaiga uses the Exponential Moving Averages to trade forex. Another trader will move the Simple Moving Average. And yet another one will use Fibonacci retracements.

Here is the key takeaway- there is no one forex trading strategy that is superior to the other one.

It is your role as a trader to find a trading strategy that suits your trading habits, refine it and perfect it to the extent that you are familiar with it like the back of your hand.

The 5 Common (and Free) Forex Trade Indicators

For the sake of beginner forex traders, I think that it is worth to explore the 5 of most common forex trade indicators. These indicators will normally come bundled withing the MetaTrader 4 Platform that you get from your broker. In my opinion, you do not need to download any other forex trade indicator.

In this article, I will only give you a brief look into each of the indicators. However, I will make a point of following up with indepth tutorials on each of the indicators. Additionally, if you need personalized help with any of the indicators, feel free to contact me on 0710251380

Moving Averages

Simple Moving Average (commonly abbreviated as sma) is used to show the average price of a currency pair over a certain period of time. Traders use the simple moving average to highlight uptrends or downtrends and to avoid trading during false breakouts.

For the best results, the simple moving average is commonly used in combination with another one. For instance, the 50 day SMA is commonly used in combination with the 200-day SMA.

In the case above, when the 50-day SMA crosses above the 200SMA, this is called the Golden Cross and it portends an upcoming uptrend. The opposite is called a Death Cross, as it portends and downtrend.

Moving Average Convergence Divergence (MACD)

Moving Average Convergence Divergence indicator is used to analysis the emergence of new trends in a currency pair. It consists of three parameters:

  1. 12– These are 12 of the past fast moving average
  2. 26– Represents the previous 26 bars of the slower moving average
  3. 9– Represents the the 9 previous bars of the difference between the two moving averages.

Typically, when the faster moving average crosses over or below the slower moving average, this is an indicator that a bearish or bullish trend is about to start.

For optimal analysis, MACD is best used as a confirmation forex indicator.  That is, only use it in combination with other indicators to confirm what the other indicators are telling you.

Relative Strength Index (RSI)

RSI is a technical analysis indicator. It is the measure of the ratio between the down-moves and the up-moves of a currency pair. The index is expressed in a range of 1-100.

When the index moves over the 70 mark, the market is considered to be overbought, and indicates that the prices of a currency might have fallen below what is normal for the market. Likewise, when the index falls below 30, the market for the currency pair is said to be oversold. This indicates that the price might have fallen below market expectations, forcing forex traders to sell the currency.

Stochastics Oscillator

I personally use stochastics to trade forex, and in my opinion, this is the simplest technical indicator ever invented.

Simply put Stochastics measures whether a certain commodity has been overbought or oversold.

For more information about forex trading and technical indicators, subscribe to my forex trading newsletter using the form on the sidebar. You can also call me on 0710251380 in case you need personalized help with forex trading.

Read more about Stochastic Oscillator here.

 

 

Investing in forex trading is like taking that first step out of your mother’s house. You never know what to expect out there.

There are profits to be made in forex trading as well as massive losses to be incurred.

According to statistics collected by Market Traders Institute, a renowned online financial training institute, only 10% of those who invest in forex trading make profits. The other 90% get their accounts wiped out in less than 6 months.

The main cause of failure in forex trading is letting emotions such as fear and greed interfere with your trading. The next big reasons why investors lose money in forex trading is lack of solid trading techniques and strategies.

In order to sharpen your forex trading techniques, you need to learn how to trade forex before you commit your hard-earned cash to trading. There are several ways that you can use to learn forex trading. In this article, I address what I believe to be among the best ways to learn forex trading in Kenya:

  • Using forex EBooks

If you are interested in forex trading, getting an eBook on the subject should be the first step in learning. The reason why I recommend you start with eBooks is simple- You need to understand the theory behind forex trading before you start trading.

However, it is important to note that not all eBooks are equal. Some are low quality, spammy eBooks written by hungry forex affiliates who have never executed a single trade in their entire lifetime. Others are advanced eBook written by economists who have been in the forex market since it was established in 1973 and have lost sync with what a beginner eBooks should look like.

At KenyanPridespot, we constantly scrub the internet looking for the best ebooks on forex trading. We categorize the eBooks according to the knowledge level of a trader.

  • Using YouTube Video Tutorials

There is nothing as informative as seeing what you have been reading in forex eBooks demonstrated visually.

Again, you have to be diligent on whose channel you get the videos from. Like with ebooks, many forex videos on YouTube are recorded by forex affiliates who put their interests to sign you up to brokers for a commission ahead of your need to learn forex.

Trustworthy and well-established forex brokers and traders post the most informative forex videos. Some of the YouTube Channels I recommend you follow include FXStreet, Jason Stapleton and MetaStock. A little research on YouTube will also sharpen your acumen on other forex Vbloggers that you should trust.

The best way to use YouTube to learn forex is by using the search bar to constrain your search to one topic at a time.

For instance, if you would like to know how to read candlesticks, searching for “forex trading strategies” will be so wide. Instead, restrain your search to phrases that are directly related to information that you are looking for.

If you don’t want to do the hard work or your broadband is not strong enough to let you watch online video tutorials, we have a large collection of forex DVDs that are beginner-friendly and are categorized according to topics. Contact Patrick on 0710251380 to get your copy of forex training DVDs delivered right next to your doorstep if you are within Nairobi.

  • Simulating Trading on a Forex Demo Account

At this point, you should be aware of several trading strategies and techniques, and it is time to pilot-test them to see how practically useful is the information you have gleaned.

A lot of forex brokers offer free forex demo accounts that are loaded with virtual money that you can use to test-drive the trading strategies and techniques that you have learned on ebooks and video tutorials. I personally recommend that you open a demo account with XM Global Forex Traders.

A forex demo account offers the best chance of learning how to implement various trading strategies without actually putting your money at risk.

NB: Never upgrade to a live forex account unless you are already making profits on a demo account.

  • Join Forex Forums and Groups on the Internet

When you start trading on a live account, you will need to keep tabs on what other forex trading experts are saying. The information shared on forex forums offers great trading insights.

Additionally, being active on a forex forum gives you the feeling of being in a community of like-minded investors. Trust me; you do not want to barricade yourself in the house the whole day trying to make profits on the market.

Some of the best forex forums on the internet include Daily Fx Forex Forum, BabyPips Forex Forum and the OANDA Forex Forum. Make sure you check out these forums during your coffee breaks. There is a lot of information from individual members on the forums.

At KenyanPridespot, we are also in the process of organizing monthly meetups for all forex traders in Nairobi. These meetups will both be fun and insightful. Keep checking our website for updates on the first great meetup.

  • Hire a forex expert to train you

Up to this point, you might have noticed that all the various ways of learning forex I have recommended are free. They also involve you looking for the information personally. While these methods will greatly limit the money you have to spend learning forex, it also means that you might have to spend more time learning.

There is also the possibility that you are busy using your time trying to learn techniques that are no longer relevant in the forex market.

You might also prefer to have a mentor who will take your hand and guide you through forex training. If that is the case, you need to hire a forex expert to train you.

There are several individuals in Nairobi who offer premium forex training. The charges for these lessons usually range from as much as 20K to as low as 10K.

At KenyanPridespot, we have a forex training module for beginners that goes for only 8K. During the training, you will be introduced to forex trading, we will teach you technical analysis using various strategies, and show you how to manage risks in forex trading. If you are interested in learning, drop me a line on 0710251380.

P.S. Leave your comments below. Was this article helpful? What do you think is the best way to learn forex trading in Kenya?

 

BECOME A SUCCESSFUL FOREX TRADER IN 30 DAYS OR LESS

Let me show you the Top 10 Secrets of successful forex traders!

[gravityform id=”1″ title=”false” description=”false” ajax=”true”]

[no_toc]

Online Forex Trade Training in Kenya

So, you are looking for the best forex classes in Kenya but you don’t know where to start. Relax. We’ve all been there. Before you leave here, I’ll show you some of the factors that you must consider when choosing a forex training school in Kenya.

Some guys purport to offer training, but they are only after your wallet. Beware of such fellows. I’d recommend that you do due diligence before you sign up for any forex training course in Kenya.

How reputable is the person offering the course? How is their presence on social media? Are they full time traders or do they make their money simply from training new traders? If in doubt about a forex trainer, call me on 0710251380. Chances are that I have information about the person.

See Below For Some of the Features of Forex Training With Kenya Forex Firm

Cost of Training

Kindly note that the price of our premium forex course is Kes 30,000, and is non-negotiable. This amount must be paid upfront before training commences. Kindly note that you are required to make the payment through Mpesa number 0710251380 (registered to Patrick Mahinge)

Online or One-on-One?

Most of our students are comfortable with our interactive online training. We therefore offer most of the training online. Once you we have received your payment for the course, you will be granted a private members area from where you can access all the training material including downloadable course guidebooks, exclusively prepared video tutorials and chat with our instructors.

Special Cases

Students who are not comfortable with our online training are required to pay an extra Kes 10,000 to cater for one-on-one training within Nairobi.The student will also make arrangements for the venue of training. Students who would like to receive one-on-one training but are outside Nairobi should call us for arrangements.

If you want to successfully and profitably trade forex in Kenya, there is no doubt that you are going to need a forex teacher or coach.

Note that there are no formal forex classes in Nairobi. The lessons offered by many traders are meant to give you the knowledge and skills that you will need in order to get into the forex market. There is no certification for most of the the forex courses offered in Nairobi.

These forex lessons are offered by individuals who got into forex trading some years earlier.

It is not in my position to say who these individuals are. Nevertheless, I will show you how you can choose the best forex expert in Nairobi.

Factors to Consider When Hiring an Online Forex Coach in Nairobi

What factors should you consider when you are hiring a forex teacher in Nairobi?

If you do not do your due diligence, you might end up wasting your money on a guy who does not know anything about forex trading.

  • Reputation of the coach/forex classes

A simple Google search for forex courses in Nairobi returns about 250,000 results!

Don’t believe everything that you read. Some of these ‘forex gurus’ have scammed vulnerable Kenyans a lot of money. Before you sign up for classes with any person out there, do your due diligence. Ask them to give a list of contacts for persons they have successfully trained.

A lot of the scammer forex classes in Nairobi will promise that you will make incredible amounts of money after you sign up for their training. The more decent trainings will never promise anything but solid information on forex trading.

  • Price of the forex lessons

Since forex trading is relatively new in Kenya, the guys who offer forex classes in Nairobi tend to charge an arm and a leg for their expertise. One of the forex experts, who also happens to be my close friend, charges a good 20K for forex training.

Other forex traders in Nairobi charge anywhere between 10 and 15K. This price is however negotiable.

To keep the training fee even lower, consider using online manuals and forex blogs to learn the theory and the basics, and only hire a forex coach to show you the practical bits of trading.

  • Mode of training- one-on-one versus online training

Usually, a lot of training in Kenya is done online but if you understand the intricacies of forex trading, you will insist on a forex coach who will physically train you to trade forex.

I do not recommend online forex trade training. You need to be there to see exactly how the trader executes the trades.

During the one-on-one training, the forex advisor should take you through the different forex trading strategies as well as guide you on risk management.

  • Venue of training

Since most of the forex trade training in Kenya is done by individuals, finding a convenient venue to hold the lessons remains one of the biggest challenges for the trainers as well as for the trainees?

Are you willing to go to the trainer’s residence for the training? Or would you like the trainer to come to your place?

Before you allow to hold the classes in a private residence, make sure that your trainer is of reputable morals.

Generally, when I am offering classes for the first few times, I prefer meeting my students in a public place such as a restaurant. To learn more about my forex training course, contact me on 0710251380.

Alternative Ways of Learning Forex Trading in Nairobi

If you don’t have the cash to invest in forex trade training, you can use other methods to learn the trade.

I personally learned what I know by investing in books that teach forex trading and watching YouTube Videos.

Learning to trade forex is also an ongoing experience. The learning never stops. After you have learned the much that you will learn from your trainer, you need to keep yourself adept by visiting blogs that are dedicated to teaching forex trade analysis and strategies.

One of the other best ways to learn forex is by using a forex broker’s website. Many brokers have a lot of invaluable training materials on their websites. Such is the case with the forex broker that I use, XM Global.

[dt_button size=”medium” animation=”none” icon=”” icon_align=”left” color=”” link=”https://kenyaforexfirm.com/go/xm-demo-account” target_blank=”true”]Click Here to Open a Demo Account at XM Global[/dt_button]

Once you have identified a broker who you think will accommodate your trading preferences, spend some time on their website looking at the training materials that they have to offer.

Although these alternative ways of learning forex do not come anywhere close to attending a live forex class in Nairobi, they are a good place to start when you do not have a lot of money to invest on one-on-one training.

 You have probably heard about the new business in town; online forex trading in Kenya. In fact, it has become so popular that it is threatening to overshadow every other online earning venture in Kenya.

Nairobi has the highest number of online forex traders in Kenya. But this number is still less than expected, more so considering the number of Kenyans who are asking questions about it. 

Needless to say, the trade is enjoying the limelight and will soon become one of the best investment opportunities for any interested person.

Here are just some of the very few benefits that you stand to reap by taking action to invest in online forex trade right now.

  •  Forex Trade Markets are Open 24 Hours- What this means is that you can adjust your lifestyle to trade at the hours that best suit you.
  • High Liquidity:-Forex trade is the most liquid trade in the world. Trades worth of trillions of dollars are traded daily. There are always traders on the look out to trade currencies in the market.
  • Free to Trade:- You can trade forex at no fees at all or at a reduced fee if you choose to use forex trade brokers (recommended). Many forex exchange brokers will provide you with a free demo account which you can use to familiarize yourself with the ins and outs of the forex trade.  Follow this link to open a free demo account if you would like to start practicing forex trade now.
  • Very Low Startup Capital:- You can start trading forex in Kenya with as little as $50 in your online account. That is less than 4K! This is possible through macro and micro forex trade accounts that are offered by some forex brokers.

How To Get Started With Forex Trading in Kenya

Before you read the rest of the article, I recommend that you have a look at the resources in the widget table below. They have been monumental in building my knowledge about forex trading in Kenya. Some of them are free while others are available in Amazon.Com for less that 500/=.

Additionally, investors who are early adopters are teaching people how to go start trading forex in Kenya. There are particular Kenyan Facebook groups, pages and blogs that have dedicated themselves to the subject of online forex trade in Kenya.

If you are one of the action takers in Kenya, you could be soon on the path to eradicating the financial instabilities posed by insufficient salaries, unemployment, aborted business ideas and unmet dreams by letting your money work on your behalf, which is what forex trade does.

In Kenya, there is actually no law prohibiting private online Forex trade. This is probably one of the reasons why it’s becoming one of the most lucrative businesses in Kenya today. Anyone who is interested with trading forex in Kenya can do so with the assuarance that there are no illegalities involved in trading forex in the country.

Now that most Kenyans are curious to learn more about forex trading, it should be the high time for you to go the same route.

If you are not sure where to begin, the next section of this article will give you the basics that you need to master in order to start trading forex in Kenya.

Step I:     Open an Online Forex Trade Brokerage Account

If you want to trade forex in Kenya, you will have to do so through a broker. This is basically a firm that handles the trades for you. You make your orders through them just like you do when trading stocks and securities at the NSE.

It is important that you research on different brokerages to find one that works best for you and is reliable. Doing your due diligence before you invest your money in forex trade also steers you away from the path of cons, scams and fraudster. I personally recommend XM Forex Brokers.

How to Choose Forex Trade Brokers

I have written a great guide on how to choose a forex broker in Kenya. If you have not done so, make sure that you’ve read it here.

Give these factors a consideration when selecting your forex brokerage firm:

  • Look for forex brokers who have been in this industry for many years, say, over 10 and have a good pack of experience. Experience simply indicates that whichever the company you have approached, it fully understands its job and treats its clients well.
  •  Check to confirm that the forex brokerage firm is regulated and its reputation is way up there. There are oversight bodies that are in charge of this. If the broker you selected voluntarily submits oversights to their government, you can have the confidence and assurance about its transparency and honesty.
  • See the number of products offered by the forex broker. In case the broker trades securities as well as commodities, for example, you know that the broker in question has a larger client base plus good business reach.
  • Read the forex broker’s reviews but make sure you are careful while doing this. In some cases, unscrupulous brokers may go into the sites and publish reviews boosting their standing and reputation. Reviews only give you a taste of the broker not what the broker really is. It’s a grain of salt.
  • Visit the brokerage website. The broker’s website must appear very professional, with active links. If you find anything like “Coming Soon!” or simply unprofessional looks, then you have no deal with that broker.
  • Check the costs incurred in transacting. Remember to find out how much you will be charged by your bank to wire money over to your forex account. Optionally, consider trading with a forex brokerage firm that allows you to fund your forex account using Paypal and other convenient online money transfer methods widely used in Kenya.
  • Focus carefully on the essentials. You require outstanding customer support, transparency and easy transactions. Gravitate towards brokerage firms that have a nice reputation.

Step II Request information for opening a forex account.

You can either open a personal account or select from managed accounts. With personal accounts, one can perform his or her own trades while with managed accounts, the broker you registered with will perform trades on your behalf.

Before you start trading with the brokerage firm you have selected, it is important that you fully understand the type of accounts that they operate.

What I personally do is ensure that I have contacted customer support with any little query or doubt that I have. It is my money that I am risking and the next thing I want is to walk into any business idea or investment blindly.

Step III Fill out the necessary paperwork.

You may request for the paperwork via mail or simply by downloading it as a PDF file. Remember to check transaction costs for getting your money into your bank account from that of the brokerage account. You never know the fees may cut into your hard earned profit so first find out on that.

Activation of your forex trading account. Usually, brokers send you emails that contain links for activating your account. Just click on the link and follow the simple instructions to get going with trading.

Step IV:  Starting Forex Trading in Kenya

  1.    Do an analysis of the market. There are several different methods you can try:
  • Technical analysis: This involves the process of reviewing historical data or charts to help you in predicting the shifts in currency with past events as the touchstone. You can make use of a trusted platform such as Metatrader 4 or just charts depending on your preference but the two will actually do the work.
  • Fundamental analysis: it involves analyzing a country’s economic base and deciding based on this factor.
  • Sentiment analysis: This type of analysis is in one way subjective. Ideally, you try analyzing the market mood in bid to figure out whether it’s “bullish” or “bearish.” While you may not on a regular basis put your fingers on the market sentiment, you may often guess well hence influence your own trades.
  •  Determination of your margin. You can proceed with investing little bits of money whilst making great profit advances. However, this largely depends on your broker’s laid down policies.
  •  For instance, if you need to trade10, 000 units at a 1% margin, the broker will ask you to deposit $100 cash in your forex account as security.
  • Any gains or losses increase or reduce the amount in the account. It is therefore for this reason that you are advised, as a general rule, to only invest 2% of your total ash in any particular currency pair even if it’s very profitable then.

Step V: Place Forex Orders Through Your Forex Broker

There are three different types of forex trade orders that you need to familiarize yourself with.

  • Market orders: With this one, you will instruct the broker to perform the transactions based on the current rate in the market.
  • Limit orders: The orders instruct the broker to perform a trade only at specific prices. For example, you may buy currency only when it reaches certain price(s) or simply sell currency in case it lowers to a specific price.
  • Stop orders: Stop orders are choices to purchase currency only when it’s above the current price in the market. This is usually done in anticipation of an increase in value or selling the currency anything below market price to lower losses.

Never at all get emotional. This is a volatile market and along your paths ups and downs will knock and wave. The only thing that matters here is doing your research very well; holding on to your strategy and watching your profits rise.

Do you have any questions regarding trading forex in Kenya? Always feel free to ask. We have an expert in the house waiting to tackle them all.

Forex trading in Kenya is starting to take momentum. To keep you up-to-date on how you can invest in the forex trading industry in Kenya, we have lined up a series of lessons that will make you start trading like a pro. To make sure that you do not miss any of our forex trading lessons,  Press CTRL=D on your keyboard right now to bookmark this page.

If you would like thorough training on forex trading, make sure to check out our training modules, which are available here.

There are three main styles that you can choose from when trading forex in Kenya.

However, before you pick a style that suits you, you need to place several considerations into mind. The major consideration is your lifestyle.

Are you available to monitor the money markets throughout the day or are you only available during certain times? If you have a fulltime job, it may not augur well with your boss if he happens on you stealing time off to monitor the forex markets at work.

You also need to take into consideration the amount of money that you are willing to risk in forex trading. As a rule of thumb, never use money that you cannot afford to risk on speculative trading. For clarity’s sake, money you cannot afford to lose is money that will cause a noticeable disruption in your lifestyle if you lost it.

In this article, I discuss a forex trading concept known as Day Trading or short-term trading.

Why Day Trading?

Day Trading is for persons who have a lot of time on their hands. It is the easiest strategy of trading that does not involve too much technical analysis. However, you will be required to be in front of your monitor most of the time in order to place and close trades.

A lot of day traders use instincts to trade forex.

How to Start Trading Forex Market as a Day Trader in Kenya

If you are going to trade the forex markets using the short-term strategy (day trading) or what I personally refer to as guerilla trading, and what other forex traders refer as scalping or jobbing the market, you are going to need a few trading strategies.

Short-term forex traders enter into a trade and close it almost instantly. The longest that day traders hold a trade is a few minutes, typically less than 5 minutes. The main aim of scalpers is to benefit from only a few pips. In order to ensure that you are not losing your money as a short-term forex trader, you need to take into consideration a few factors:

  • Make sure you capture at least 3-10 pips to offset the spread

Many forex brokers place a spread of 2 to 5 pips on retail traders. In order for you to break even, you will have to put into consideration the spread at which you entered the market. You should also factor in the pip when considering the amount of loss you are willing to take.

Do not hold on a losing position hoping that the tides will soon turn to your favor. The most disciplined day traders have a position working for them or close it sooner than they can blink an eye.

  • Develop proper the short-term trader’s discipline

As a short-term trader, you need to have very high levels of financial discipline. Do not let your emotions cloud your judgment and obscure your objectives. If your main aim is to profit from only a few pips, then it follows that you cannot afford to lose more than a few pips.

  • Only trade in currencies with the highest liquidity

Liquidity is the greatest for a day trader. Currencies that are highly liquid are the most ideal for short-term forex traders. The liquid currencies include USD/EUR, USD/JPY, EUR/GBP, EUR/GBP, EUR/JPY and EUR/CHF.

These currencies have tight spreads and less impromptu price jumps. You can therefore make a prediction of which the side the market will be moving in the next few minutes.

  • Only trade during the peak hours of the forex trade market

Like liquidity, a volatile market is fodder for the day trader. The forex market usually peaks at European trading zone, which is around 9 a.m. to 7 p.m. Kenyan time.

At this time, the Asian and the American markets overlap with the European zone. Other time zones are not ideal for a day trader.

  • Focus your attention on only one currency pair only

For you to adeptly follow minute-by-minute price changes on the market, you need to narrow on only one of the most liquid currency pairs (see no. 3). Focusing on a single currency pair also improves your ‘feel’ and intuitiveness on the currency pair.

  • Preset your forex trading volume to save time

Time is of utmost importance to a day trader. To minimize the amount of time you spend setting up your trading options, consider presetting the trading volume that you will use throughout your day trades.

  • Choose your forex brokers carefully

To be successful as a day trader, you need to work with forex brokers who offer click-and-deal trading platforms. This saves you from delays that might be occasioned by execution orders.

  • Do not trade around the time data is being released

While data releases are a major ally to long-term traders, they do not augur well with short-term traders. Trading 30 minutes prior to a major data release is equivalent to tying a noose around your neck. The forex markets usually go into a flurry minutes before the release of such data.

That is it for the forex day traders in Kenya. Next, we shall be looking at the medium term forex traders in Kenya, and what you need to do to break even in the market.

Have you been thinking of trading forex but you are afraid of losing your money?

Fear no more.

XM Forex Global– a reputable forex brokerage firm based in Greece, offers a free bonus of $30 when you open a live account.

You do not need to deposit any money in your live forex trading account to access this discount.

Simply open a Live Forex Trading Account and you are ready to roll.

You can withdraw all the profits you earn from the Live Account at any time that you want.

The most convenient way to withdraw your forex profits in Kenya is using Moneybookers/Skrill. You can withdraw funds from Skrill right into your Mpesa account in Kenya.

If you do not have a Skrill Account, click here to open one for free.

 

XM Forex Bonus on Deposits

One of the reasons why I always recommend XM Forex Brokers to my forex proteges is because of the low amount of minimum deposits required to operate an account.

The minimum deposit stands at $5.00 only.

And incredibly, you get up to 50% bonus on the amount that you have deposited. So, whenever you deposit $5.00 into your XM forex account, you will get a bonus of $2.50. Your total trading balance will therefore be $7.50.

The 50% bonus applies to all amounts below $1,000. For amounts exceeding $1,000, a 20% bonus is included.

The XM Forex bonus keeps accumulating with every subsequent deposit you make until you have earned a total bonus of  $5,000!

If I were you, I would be headed to XM Forex Brokers right now to claim my bonus.

Click on this link to open your account and claim your bonus right now.