Top 10 Forex Trading Blunders That Can Wipe Your Account in Less Than 3 Seconds

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.

You Don’t Need a Thousand Complicated Indicators to Trade Forex

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.

 

 

This is Best Strategy to Learn and Trade Forex in Kenya

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?

 

Best Forex Trade Training Courses and Classes in Nairobi Kenya

BECOME A SUCCESSFUL FOREX TRADER IN 30 DAYS OR LESS

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

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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.

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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.