A guide on your journey about forex trading, how it has to turn little Joe’s too big Joe’s.
How it has shaped the lives of many people who came from zero to hero.
Forex trading in Nigeria is no longer a myth or legend or a fairy tale. With a smartphone or a laptop, you can trade forex in Nigeria.
Have you heard of Maxwell Welli Odum, Uche Paragon, Divine Dollars, and other successful Nigerians who made financial freedom through forex trading?
Uche Paragon began is Forex Trading career in 2007. Uche is an uniquely well known forex trader in Nigeria because of his trading techniques and success so far. Uche also founded a trading school in Lagos and Port-Harcourt.
Divine Dollars has traded forex for years, and have lost so much money, gotten to a point she was in heavy debt, but grace found her, and now she is financial free through forex trading, also she is a pioneer of Fxfarms Nigeria.
What is Forex Trading?
Forex trading is the trading of the word various currencies. The word forex is coined from foreign exchange.
It is also called currency trading or just FX trading. And forex trading is quite different from trading shares and stocks.
You may not have a clear knowledge of what forex trading means, but the fact is that you have in one way or the other participated in forex trading.
How possible is that?
If you have ever exchange dollar to naira or naira to dollar in the bank when you want to travel out, or with the Mallam in their shop, you have participated in forex trading. And the place where the deal was done can be referred to as the forex market.
But then, we are now talking about being a professional trader, where you get to business with central banks or other financial institutions in the global market.
Isn’t that interesting?
You will get to know more about forex when you understand the concept of forex trading.
In the next subheading below, you will get to understand how the forex market works, and the basic to forex trading.
How to do Forex Trading in Nigeria
Now, most people feel unconcern with kinds of stuff like shares trading, and forex trading, because they feel it is not their spec, or they feel is something impossible to learn.
I remember when I was on my phone executing trades, and then a friend of mine who was close by was like, every time you on this.
Why are you even trading forex?
I was wowed, but then I wouldn’t be shocked if people keep asking these intriguing questions “why do you trade forex?
The answer is straight, we trade forex to make serious money, the forex market is the most liquid market in the entire universe.
Imagine trading in the world no.1 market that has an average daily turnover of a whopping $5.3 trillion and it is always open 24hours a day, 5 days a week which means you have basically 120 hours to make money from forex trading every week.
Imagine the forex market to be a pacific ocean, and you a trader want to fetch water from such a big ocean, you are going to fetch as much as you want and the forex market (the pacific ocean) will not even feel like water was drown out of it.
The forex market is decentralized and that means you can make any amount of money, but then, you have to be cautious and have a working forex trading strategy because as the opportunity to make money is wide, so is the risk to lose money too.
But don’t be scared, because it is not mandatory that you are going to lose money in forex trading, if it is then people won’t trade forex and none who have gained financial freedom either way.
Is forex trading in Nigeria legal and safe
Forex trading in Nigeria is legal to an extent. Banks do trades forex but are under regulations and laws empowered by the Central Bank of Nigeria.
So if banks are allowed to trade forex, then it is legal. The potential to trading forex in Nigeria is enormous and it is the right time to tap from the forex market.
How to make money from Forex Trading in Nigeria
Making money from the forex market, requires proper training, reasonable capital, effective strategy, and lots more, and I must say in general it is not a get rich quick scheme.
But then, the ideology to make money on forex trading is simple.
If you think, the euro is going to rise vs. the USD, then you would buy it vs the USD. Think it’s going to fall in value – then you would sell it vs. the USD.Bulliscoming
That is just the forex trading basic mechanism of trading currencies, buying low, and selling high to make a profit.
Imagine yourself, doing business with central banks, other big banks, investors with 10 or more years of experience of the forex market, companies, and corporations before you get down to retail traders (you).
So to make money in this field, you need to acquire professional training, and proper guidance, so as you don’t blow your account (lose your money).
It is recommended you register in a forex training institute an attain a level of mastery before you venture into trading forex, or you can just play lowkey by investing in forex, whereas you are breezing through various training so be able to trade yourself.
If you don’t, seeing the forex chart alone, how the candlesticks go up and down, hearing forex terms like Pips, currency pairs, bid and ask gonna blow your mind, and you are going to get lost.
So in the next subheading below, I will love to get you acquainted with some of forex native words or else the locals so you don’t get overwhelmed whenever you come across any.
Forex Trading terminologies and their meaning.
When quoting the exchange rate of two currencies, we usually quote them in pairs i.e EUR/USD, USD/CAD, or GBPUSD. Just like the e.g I gave you above that if you think USD will rise vs the EUR then you buy it and vice versa. Now the basic of forex trading revolves around this simple concept currency pairs.
Let me explain further.
Let say dollar against our wonderful naira is at the rate of N360/$1. We can quote this as a currency pair, which will be:
USDNGN = 360
This means 1 Dollar = 360 Naira. I hope this is understood!
A pip is short for percentage in points or the unit of measurement to express the change in the value of currency pair.
You will keep hearing this word frequently as long as you trade forex.
The pip is also the small increment of price movement a currency pair can make. Usually, all currency pairs are quoted in 5 digits.
An instance where the value of EUR/USD increase from 1.1129(3) to 1.11030(3), the 0.0001 increments is called a pip.
Bid and Ask price
The bid price is the price you broker gives to you when you want to execute a sell order, while the asking price is the price the broker gives to you when you want to execute a buy order.
It is very straight forward. For you to be able to trade you need to access the forex market. This access can be granted by a broker, so that’s you just need a broker to trade forex.
The broker will serve as a middleman that connects you to the forex market to trade, and then they get their own commission from the trades you make.
So when you place a buy order for a currency pair, you actually Asking, and when you place a sell order in the forex market, you are Bidding.
A spread is the difference between the bid and ask price, and it usually acts as a markup commission for your broker. The spread is usually measured in pips and it varies from currency pairs.
Buy and Sell Order
A buy order is a type of order that is executed when we expect the price of a currency pair to increase in value or to rise.
Whereas, the sell order on the other hand is a type of order that is executed when we expect the price of a currency pair to decrease in value or fall in value.
So for instance, if you feel the value of USD/NGN which is let say 450 Naira will decrease to 400 then you place a buy order, and if it does decrease to what you have predicted, then your transaction will be executed.
Best Time to Trade Forex in Nigeria
Around the world they are 3 major times zones or sessions, and this is what the forex market follows they are.
- Asian session: this is the first session to open and it comprises of countries like japan, Australia, Singapore, etc. this is usually the quietest of all sessions in terms of trading volume. However, the spreads here are slightly increased.
- European session: After our asian brethren have launched the day for us, the big boys in Europe take over and kick up the pace. The European session is the main session as it has the highest of traded volume in the day.
- New York session: the new York session is the last to open in the day, it’s not as active as the European session but you can see some really frantic and absured movements due to major news releases.
The major trading sessions of the world. Their opening times summarized in the table below.
|Timezone||Open & Close||GMT (0)||GMT (+1)|
|European||Open||07:00 AM||08:00 AM|
|New York||Open||01:00 Pm||02:00 PM|
|Close||10:00 PM||11:00 PM|
Forex Investment Companies in Nigeria
Well, not everyone is going to be a forex trader, and most people who make money from the forex market are not actually trading, some of them even have zero knowledge of how forex trading works.
But how where they able to make money from the forex market?
The answer is through forex invesmtnet.
There are various companies that focus on forex trading and all they need Is investors to invest money while they leverage on the money to make a profit from the market and then share profit with their investor.
Here is Bull is coming best pick forex investment platforms to invest with.
- Mba Trades and Capital Investment
MBA Trades and Capital Investment
Mba trades and capital investment is a world-class forex investment company in Nigeria established with the vision of impacting the general populace with the knowledge of trading forex and establishing platforms that will bring about financial Freedom.
Fxfarms is an exceptional forex trading platform that provides the most profitable means for investors to invest funds in forex without any limitations.
Fxfarms then trades with your funds and then give you ROI (return on investment) also reward you with other bonuses if indeed you choose to partner with them, here is an honest review on Fx farms Nigeria.
Forex trading in Nigeria is an untapped income stream and taking your time to master it now will benefit you later in the future because the world is going global and this are the ways to financial freedom.
However, to trade forex effectively you need proper guidance and direction from the right person so you can achieve this.
Not every one that teaches forex is a forex trader, get your education from someone who is actively trading forex, because that is when you get to know what works in the market and what doesn’t work.
It very practical.