Category: Featured

So you want to learn to trade forex. Hmmmmm…

This site will teach you how to trade.

It will provide you information and links to information that will explain the trading process. The process of trading is not to be taken lightly.

Should you decide to venture upon this journey, you must know that you run the risk of losing every friend you have, your sanity, your dignity, all your worldly possessions, and most of all every penny you own.

On the other hand, if you learn to trade properly and stick to your strategy, you can make a lot of money.

Paying for Training

Keep in mind that there is a price to pay. This price is often called, for newbies, tuition. That price includes those trades where you have a loss, the hours you spend reading books and information sites on the web, the time away from your friends and family, and a change in your life style.

You’ll stay up nights doing research and you’ll pass up those get-togethers with friends at the local Kenchic.

“No” you say. Well friend, lets get something straight from the beginning. Trading is not for the weekend warrior or the midnight cowboy. Unless you are willing to put in the time to study and learn, YOU WILL FAIL!

The amount of studying and preparation that you invest will ultimately determine the level of success and the strategy that you design for yourself.

That’s right, you will design and determine your own strategy. While others will try to convince you that their methods are right or if you decide to follow someone else’s method you must always remember:

“You and you alone are responsible for your actions.
You and you alone are responsible for any trades that you make.
You and you alone are responsible for doing your own Due Diligence (research).

Don’t be so foolish as to try to blame others if a trade goes sour and you lose money. You should have gotten out of the trade before it dumped you beyond your economic capabilities.

[easy-tweet tweet=”The amount of studying and preparation that you invest will determine your success” user=”KenyaForexFirm”]

Are you a born forex trader?

Online Forex Trading in KenyaOne more note of caution: don’t let your ego get in the way of saying to yourself, “This is not for me.”

All too often, people see dollar signs in their eyes and just won’t admit that trading forex online is not for them.

If you still want to trade in online forex, you might try working with a full service broker for a few years. Some people find that a full service broker satisfies the craving. Remember, learn your limitations. Don’t be afraid to admit to yourself that this is not suited to you.

Perhaps you would be more comfortable joining an investment club in your community. If so, visit Investment Club Central.

Ok, I know, enough already.

Well, the reason we started this site was because we would see, and still do see, people everyday losing everything. We want to make sure that prospective forex traders in Kenya are aware of the risks involved with trading.

Also, for those of you that are really sure that you want to go on, then, at least you are armed with a wealth of resources where you can study, research, practice and chat in your pursuit of learning to trade.

Don’t be foolhardy. Trade with only those funds that you can afford to lose. Don’t use your savings, retirement plans, school tuition, etc. Be cautious, learn to trade on paper first.

Perhaps before going much further, you should read some comments from some of the chat rooms on starting to day trade for a living. As in any job, there are pros and cons. Read between the lines and learn to separate the hype from reality.

Perhaps self study is not for you. Are you one of those people that learn better in a classroom? If so, we can definitely say the Online Trading Academy is one of the best. Their 1 week boot camp is a real good way to jump start your entry into trading in the markets.

Is investing in online forex trading worth it? This is one of the most common questions we get asked by fellow Kenyans who want to invest in the forex market, but they are not sure whether it is worth it or not.

There are a few other common questions that we get asked now and then. So, in addition to answering whether investing in forex is worth it, we will also be looking at the other 6 commonly asked questions.

But first things first:

Is Investing in Forex Trading Worth It?

When new traders are asking this question, they actually have a number of questions vested in one:

  1. Should I spend time learning how to trade the forex market?
  2. Is online forex trading a promising venture, or is it a waste of time and money?
  3. Can one become wealthy (read millionaire) by trading forex?

These are all worthy questions. You really need to know what you are getting into before you start trading. You need to know whether it is worth to spend your time and money learning how to trade forex or whether you should look for another means of investment.

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If you are asking this question, you probably fall into one of two categories of Kenyans:

  • You know that you can make money trading forex. You have seen your friends or family become rich by simply investing in forex. But you have doubts as to whether you can personally do it.

The short answer here is simple. If others can do it, you also can. You don’t have to be a genius or have high academic qualifications. You only need to be dedicated, disciplined, and serious.

  • The second category consists of those who have a slight clue that they can make money trading forex, but they don’t know just how much they can rake in. They probably don’t have anyone they can look up to who’s been trading forex successfully.

If you fall under this category, you probably have a few comparisons to make, and you are looking for an investment that will give you the highest return on investment in the shortest time possible.

I like to use the example of a doctor while explaining this. If you are to become a doctor, which is one of the highest paying jobs in Kenya, you’ll need to spend at least 7 years learning. After you’ve graduated, your starting salary would be around 500,000/=, and that is if you are highly specialized. To earn this much, you’ll also be required to put in at least 8 hours of work per day.

Average high school teachers in Kenya make about 60K per month. Bank tellers make about 30K per month, and a janitor will take in at most 20K at the end of the month.

Now, let us look at how much you can make as a forex trader.

The earnings of forex traders in Kenya vary greatly. Each trader’s earning will depend on factors such as their trading style and their account size. However, once one learns how to trade forex and starts trading profitably, there will be no limit to the amount of money they can make per month.

Say for instance, you open a forex trading account with a deposit of $2000 (200,000 KSh), and you consistently make a profit of 20% per month. After three years, this account will have grown to $1,417,603.75 (that’s more than 141 Million Kenya Shillings!)

If you start withdrawing your monthly profits after your account has grown this much, you’ll have yourself a month income of $283,520.75 (Ksh 28,352,075- yes, that is 28 million Kenya Shillings.)  A lot of forex traders in Kenya have been able to achieve this, and so can you.

But Can You Really Make 20% Per Month?

I am going to tell you something that I always avoid saying. The way most forex traders trade, making 20% per month is a piece of cake. I don’t usually say this, lest I be accused of misleading people. But the truth is, you can make more than 20% per month trading online forex.

[easy-tweet tweet=”You can make 20% per month trading forex” user=”demagnify” hashtags=”#KenyaForexFirm”]

So, Is Forex Trading Worth It?

Compared to other jobs, an investment in forex trading is a worthy investment. It has less hassles, stress, and risk. Once you become a profitable forex trader, all you have to do is check a few charts per day. You’ll literally be spending less than 60 minutes on your computer per day, and making more than you’d have made on an 8-5 job.

Risk Disclaimer

It’d be imprudent for us to end this article without a risk disclaimer. Forex Trading is profitable, yes, but if you do not follow the right track, it is also the easiest and fastest way to burn your money. You can lose a lot of money in this business. You can even lose all that you have- I’ve seen this happen to a few fellow Kenya traders.

Don’t rush after wealth and riches. Aim to understand the ins and outs of the market first, and everything else shall follow. If you liked this article, kindly share and comment.

 

 

Have you ever come across a person who asks this question? Maybe you haven’t because you are also new to online forex trading. You are probably also looking for a person to guide you.

But if you were in my position, this type of questions has everything skewed up. I normally do not answer such questions, but if I could, I would have only one answer for such people: “What…? You mean you are a newbie? Well, go and invest your money elsewhere. You will never become a profitable forex trader!”

Asking questions like this one is utter nonsense.

You may call me rude, pessimistic or arrogant, but such a trader will lose. Yes, you will lose, if you are the kind of person who asks such questions.

It is obvious that such a person has not bothered him/herself to even push a single keyboard key to find out about online forex trading.

Such a person does not want to tire their brain doing research for themselves and gathering information about online forex trading.

Such a person does not consider other people’s time to be valuable. How can s/he expects other people to be the ones to answer these basic questions about forex trading?

And this is the sole reason why they will lose. A person with such an attitude and ‘exceptional’ research knowledge may never become a profitable forex trader.

An investor is a die-hard researcher at heart. An investor keeps an open mind and has the ability to find all the answers by him/herself.

Before you ask such dumb questions, remember that Google is your best friend. Type your question on the search engines, and 10/10 times, the answer will be right there in the search engine results.

Over 90% of the people who start trading online forex in Kenya get their accounts wiped out in less than six months. However, you do not have to become part of this statistics. You can trade forex in Kenya and become as profitable as you wish to be.

However, for that to happen, there are some fundamentals of forex trading that you have to keep in mind:

#1 Currency Trading is not a get-rich-quick scheme

Sorry to break your heart, but if you are looking to get into forex so that you can retire at thirty, you couldn’t be more wrong.

Forex trading is a skill, and it takes a lot of training, time and persistence to be profitable in the trade. The truth of the matter is that if you are just getting into the trade, you will lose more trades that you will win. This is why I highly recommend that you trade on a demo account for as long as it takes you to return some profits.

If you do not have a forex demo account, click on this link to open one right now.

#2 Focus on only one or two currency pairs

Trying to be a jack-of-all-trades (pun intended) is the easiest way to wipe out all the capital you have invested in forex trading.

Pick one or two currency pairs, study them until you understand how they are affected by prevailing market conditions. Practice dealing them on your forex demo account.

It is overwhelming to keep tabs on all the major seven currencies that are commonly traded on the forex market.

If you are going to pick one of the major currencies, go with the EUR/USD. It offers the best spreads, which will cut down on the price you pay to get into a trade. However, since the currency is highly traded, it is very unstable and you will need to be more savvy when trading it.

#3 Follow Financial News

As a beginner in forex, you will mostly be using technical analysis to get into trades. This does not however mean that you shouldn’t keep tabs on the news affecting the forex market.

Trading forex in Kenya without a clear picture of what news is being released and how the news is affecting the market is a recipe for disaster.

Mostly, immediately, news is released, the market tends to be very volatile, and it is advised that you wait 15 minutes after the break of important news before you place a trade.

Now, assume that you are not aware of when news is released? Do you see why it is important to keep tabs on political and economic news from around the world?

#4 Follow the Analysis of Forex Trade Experts

There are guys there who have been trading forex since God-knows-when. They are experts in what they do, and they are generous with their opinions.

Do not shy away from following them on Social Media, Youtube, websites and forums.

While reading the analyses from forex trade experts, write down what direction they are predicting the market will go and the levels they have predicted to be the key resistance and support points for the day for the currency you are following.

Some of the best places to find daily expert opinion about the market include:

  • Fxstreet.com
  • Forexnews.com
  • Currencypro.com

#5 Always Have a Trade Strategy and Plan

By failing to plan, you are planning to fail.

That is some deep ancient wisdom right there. Forex trading is not gambling. There are indicators and signals that clearly point where the market is headed. Make use of these.

More importantly, however, never enter a trade without a strategy.

Before you make a decision to go long or short, you should clearly have an entry and exit strategy. How much profit do you want to make from the trade?

What loss can you tolerate on the trade?

Place your take profit and stop loss, and stick to them. Do not get greedy and do not let fear get the best of you.

If you do not know how to analyze forex charts, make a point of taking a training course.

Your trading sucks. Or you are afraid of investing in forex trade because you are afraid of wiping out your account. Imagine depositing $100, $200, $500 or whichever capital you have set aside as forex investment only to receive a margin call after only a few trades…

You would probably walk away and spend the rest of your life trying to convince everyone how forex trading is not conducive. However, the truth of the matter would be that that you made mistakes- mistakes that you could have avoided had you traded more carefully.

Making mistakes in forex will cost you dearly. It will cost you money and your confidence. It will rob you of an opportunity to invest in one of the trades that has incredible returns for the meticulous trader.

At Kenya Forex Firm, our goal is to help you trade forex like a pro. One of the first steps to meticulous and profitable forex trading is to avoid making some of the common mistakes.

Mistake #1 Misusing Your Account’s Leverage

In forex trading, leverage lets you control huge chunks of money with very minimal deposits. For instance, if your forex broker offers leverage of 1:100, you would be able to trade currencies worth $40,000 with a deposit of $400 only. With this level of leverage, the profits can be very tidy. The opposite is also true. If a trade fails to go your way, the losses can be extremely messy.

Fortunately, many forex brokers allow you to choose the level of leverage that you would like to apply on your account.

My advice for every beginner forex trader there is to go for a leverage of 1:10 or trade with  no leverage at all if you can afford a higher initial capital.

After limiting your leverage, you need to make sure that the trades you open are not too large for your account.

Closely related to the issue of leveraging is risk management. Fore every trade that you take, you should ensure that the potential profits are twice the potential loss. This way, your winning trades will always bring in more money than the losing trades are taking away.

Mistake #2  Overlying on Indicators and Other Fancy Techies

A lot of forex traders spend most of their time hunting for the perfect forex trade indicator and neglect the place where the real action takes place.

There is a sad truth in forex trading. Many technical indicators do not have any advantage over reading price action on the naked charts.

Before you are drawn into the cacophony of trading forex by relying on technical indicators, make sure that you can tell the direction the price will move from simply reading a price chart.

Don’t get caught in the nefarious pursuit for a perfect technical indicator. It does not exist.

Mistake #3 Trading Without a Plan

By failing to plan, you are planning to fail

A lot of beginner traders get into forex trading without a functional forex trading plan. However, like every other business, forex trading needs a clear plan.

It is a forex trading plan that keeps you regulated so that you do not exert unmitigated damage to yourself. In your plan, clearly outline the amount of daily profits you are targeting and the amount of daily losses you can accommodate. Once you hit this number, take a break.