• Trading forex has a very large learning curve, so it’s important to spend time preparing to start trading.
Image: Trade Forex Kenya
If you’re interested in learning to day trade the financial markets, then this article could save you a lot of time! Trading forex has a very large learning curve, so it’s important to spend time preparing to start trading, which is more likely to set you up for success in your trading career.
Below you will find some things you should start and consider before trading live market conditions.
Education
Before jumping into trading a live account with a forex broker in Kenya, it’s important that you spend some time educating yourself and developing a forex strategy. This is going to be one of the most important steps, and it should not be rushed.
Start by learning about forex - there are many kinds of analysis day traders use. The three primary ones are technical analysis (reading charts and indicators), fundamental analysis (using economics to determine market movement) and volume analysis (using fair price to gauge where price could be headed.)
Once you have learned about these, and decided which form of trading you would like to use, then it’s time to develop your trading strategy. Spend time on the charts, observing how price interacts with news announcements or indicators and use this to help you design your system.
Then of course, practice on demo before going live with it!
Trading software
In order to analyse the markets and execute your trades you are going to require some trading software. The first you will need is a charting software, which is essentially where you will conduct your analysis. Secondly, you will need a software to execute trades from. Most software has the capability to do both, but not all do both well.
For example, Trading View is fantastic for both charting and execution; however, they only offer execution with very limited brokers. MT4 and MT5, on the other hand, are able to be used with most brokers, but the charting software is not as sophisticated as other platforms. Essentially, it’s about shopping around and finding software that meets your individual needs.
Forex broker
Before you can place a trade, you will also need a broker. A broker takes your trade and places it on the market for you. There are lots of forex brokers around, all with a different offering, so it’s worth looking around to find which is the best broker for your needs. For example, regulated brokers have a certain level of protection of your money, but often have lower leverage, so you need to consider things like this before signing up for a Forex broker.
Considerations include:
- Leverage
- Regulation
- Ease of Deposits & Withdrawals
- Customer Service
- Instruments Offered
Forex trading can be very profitable if the correct steps are taken to ensure you learn the process fully before going live. It’s a great business opportunity because not only is it scalable, it’s also a business you can run solely from home and operate at almost any time since the market is open 24 hours per day five days per week.