12 °c
London
Monday, May 23, 2022
No Result
View All Result
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About
No Result
View All Result
FurtherAfrica
No Result
View All Result
Home Africa

Fundamentals of Forex trading in South Africa today

The Exchange by The Exchange
November 19, 2020
in Africa, Capital Markets, Currency, Finance, Forex, Investing, South Africa
Reading Time: 3 mins read
1.1k 11
1
Share via QRWhatsappShare on FacebookShare on TwitterLinkedInPinteresteMail

Forex Basics You Should Know About Online Trading

Forex Trading, or the foreign exchange, is the largest financial market. Every day, close to US$6T circulates between institutions and individuals. You do not have to be a finance professional to join in.

Today, there is no shortage of Forex tutorials and other instructional content. Discover the most basic facts about the market and its workings, and become a trader in South Africa.

1. How Profit Is Made
Trading is the monetization of knowledge. You should be able to predict movements of currency exchange rates, and open positions to garner profit. Any trend can work to your advantage, be it a rise or a fall. The outcome depends on the accuracy of your foresight. Fortunately, traders have plenty of helpful tools.

Every beginner must learn about fundamental and technical analysis. The first system teaches traders to base decisions on information from the media. News about political and economic events may have a tremendous impact on currency rates. Economic calendars embedded in trading terminals summarise the most significant updates. Possible factors range from GDP to fiscal policies to international conflicts to oil prices.

Secondly, you may rely on indicators like moving averages and volume. Platforms like MetaTrader 4 come with an array of embedded features. By applying indicators to charts with different time frames, you may spot price patterns that may reappear. Nothing prevents you from using both technical and fundamental systems in your work.

Also read: Bank of Nigeria sells US$50M to gauge forex demand: traders

2. Keep Risks Under Control
Risk is an essential part of the game. Traders may not eliminate it completely. Your goal is to keep losses in check, rather than avoid them. There are two ways to do this — via portfolio diversification and system features like Stop Loss.

Stop Loss allows you to set the acceptable price level, so the system executes the trade automatically once it is reached. You can find a simple video tutorial for Stop Loss on YouTube. This measure prevents excessive losses if the market suddenly turns against you. A similar feature is called Take Profit. You can set it to collect desirable returns.

Finally, consider diversifying your portfolio after you master Forex. Traders should gain exposure to different markets, as this limits their risks and boosts profits. For example, in addition to currency pairs, you might trade stocks, precious metals, and derivatives like contracts for difference (CFDs).

3. Long-term and Short-term Strategies
For day traders, Forex becomes a full-time job, as they spend several hours per day analyzing the market and making their moves. Swing traders may check the market only occasionally, as they are focused on the broader picture.

Today, there is a wide range of strategies to choose from. Learn about the most basic approaches, and try using them in the demo mode. Check out this forex trading tutorial by ForexTime.

No strategy is guaranteed to bring returns. Everything depends on your own skillset, analytical abilities, and foreign exchange. Remember that market forces are beyond your control. A skilled trader may foresee changes, but not program them. Therefore, be wary of any ‘gurus’ that promise quick riches. Focus on building your skills and knowledge.

4. Correct Attitude To Failures
The market is not always predictable — even professionals may lose their deposits once in a while. Mistakes can and will happen. But how can you make them as rare as possible?

When a trade fails, stop and look back at your actions. What caused the negative result? Was it your own fault, or did the market move erratically? Every failure is an opportunity to learn and perfect your strategy.

What sets experts apart from amateurs is that they keep calm under pressure. When they make a mistake, they review their behavior to prevent the same mistakes in the future.

5. Importance of Emotional Control
You may be surprised that Forex profits are closely connected with emotions. Traders should never work when they are depressed, angry, or overly excited. Emotions cause impulsive decisions which are rarely lucrative. All too often, traders lose money because they are unable to think clearly. It is advisable to base every decision on logic and rational analysis, rather than hunches. Knowledge is key.

Start Online Trading Today
South Africa has a growing army of traders — in fact, it is the leader on the continent in terms of Forex volumes. Not every trader succeeds, but there is plenty of information on how to make profits consistently. Therefore, keep an open mind, continue learning, and make the most out of demo trading before switching to a live account.

Original article on The Exchange

Related

Tags: CurrencyFinanceforeign currencyforeign exchangeforexforex tradeforex tradersFundamentals of Forex trading in South Africa todaySouth Africatradingюжная-африкаجنوب-أفريقيا南アフリカ南非
ScanSendShare441Tweet276Share77Pin99Send
The Exchange

The Exchange

News analysis and comment from the The Exchange, a leading publication providing economic news and analysis on the capital markets of Africa, with a specific interest in Kenya, Uganda, Tanzania, Rwanda, Burundi, Ethiopia and Congo. We provide features in banking, capital markets, energy, mining, manufacturing and industrial development.

Related Posts

Environment

Rich nations offer debt guarantees on South African climate deal

by FurtherAfrica
May 23, 2022
Ethiopia energy access
Trade

South Sudan and Ethiopia sign 100MW electricity trade agreement

by Energy Capital & Power
May 23, 2022
Venture Capital

South African TooMuchWifi raised US$1M pre-series A funding

by TechGist Africa
May 23, 2022
Development

EU provides €3M+ for urban development in Mozambique

by Club of Mozambique
May 23, 2022
South African stocks hit near 7-month highs
Banking

South Africa Investec nearly doubles annual profit

by FurtherAfrica
May 23, 2022
Great Limpopo Transfrontier Park
 
AFSIC 2022
 
MozParks

Translate this page

Read the Latest

Environment

Rich nations offer debt guarantees on South African climate deal

by FurtherAfrica
May 23, 2022
0

A group of the world’s richest nations offered South Africa debt guarantees as part of a proposed $8.5 billion deal...

Read more
Ethiopia energy access

South Sudan and Ethiopia sign 100MW electricity trade agreement

May 23, 2022

South African TooMuchWifi raised US$1M pre-series A funding

May 23, 2022

EU provides €3M+ for urban development in Mozambique

May 23, 2022
South African stocks hit near 7-month highs

South Africa Investec nearly doubles annual profit

May 23, 2022

FurtherAfrica Partners

The Exchange Club of Mozambique Taarifa Rwanda
TechGist Africa Africa Oil & Power Farmers Review Africa
Tanzania Invest Zambia Invest See Africa Today
Africa Global Funds Novafrica CrudeMix Africa
Harambee Africa Botswana unplugged Financial Insights Zambia
Digilogic Africa

Subscribe to FurtherAfrica

Enter your email address to receive new articles on your email.

Join 73,051 other subscribers.

FurtherAfrica

© 2021 FurtherMarkets

FurtherAfrica is a FurtherMarkets Limited platform

  • Countries
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About

Follow Us

No Result
View All Result
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About

© 2021 FurtherMarkets

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?