There is a growing band of black forex traders who are showing the world that they are as skilled as the traditional Wall Street Traders. Examples of these are:
Ty, Kaci Jackson, Cue Banks, Richoffthenet, IzaT, Edward (Edz) Ricketts, Warren Francis, Jossenia, Frosty-T, Malaikah, Pipology, Nasdaq Queen, Kelsc, Tradingpdf CVM
South Africa’s top 5 young black Forex Traders (that we know about) are Sandile Shezi, Ref Wayne, DJ Coach, Jason Noah and Louis Jr Tshakoane. All the above can be found on youtube, which is the tip of the iceberg as there are thousands out there who not posting online what they are doing in private.
One of the toughest things to do as an investor is to make a small capital or starting bid large in a considerable amount of time. Tough as it may be, it is still very possible. The key to this is picking trading over stock market investing as these can give you big gains in a short amount of time. Of course, trading itself is a complex matter to do.
There are many financial instruments that you can trade online. There are binary options, commodities, and even cryptocurrencies. Perhaps the most popular trading instrument used is foreign exchange currencies or forex for short. A lot of people with low capital get into this form of trading and you should consider it too.
Before we talk about some tips to help you make gains, let’s first talk about what forex trading is. Simply put, forex trading is when you trade currencies with one another in hopes of making a profit. One thing worth noting is that currencies are always going to be worth something. As such, whatever happens, you’ll still have something of value at the end of the day.
Now, let’s move on to more important matters which are some of the secrets you need to know to win big in forex trading.
Read Up On Current Events
One of the reasons why people prefer forex trading over other financial instruments is that your calls aren’t entirely based on prediction. Currencies are affected by numerous factors such as the economy of the company as well as recent events surrounding the country too. That being said, you can easily see if a currency is bound to go up or down through the news.
When making long-term trades, investors usually prepare by going to the internet to search about current events. This helps give them a better understanding of how a currency could move in the future. While it doesn’t give exact values, current affairs do give you a better idea of whether a currency will drop or rise.
Make it a common practice to search about the latest events before you make trades. Ideally, you’d want to focus on economic news and investment news as these are the ones that make a large impact on the price of a currency. A good example of this in play can be examined now in countries hit by the pandemic heavily. Countries that have had their economies suffer have lower values for their currencies as of now.
Find The Right Platform
Unlike in stock market trading, there is no NASDAQ or NYSE equivalent in forex trading as there is actually no central exchange for it. Instead, you are free to choose from a selection of platforms to start trading on. While many are authentic and safe to use, you should still be picky when it comes to choosing a platform to make trades in.
For starters, you need to consider the spread of the currency trade as this is one cost you’ll have to shoulder during the process. Many platforms offer minimal spread but it’s best that you see these brokers without spread. For a trader with a limited budget, it is a must that you pick platforms with smaller spreads so as you don’t lose all your money in them.
Trade Using A Demo Account
As you are on a limited budget, it’s a must that you learn how to practice trading properly first. There’s no exact trick to winning big in forex trading and you need to create a method of your own. Find your own rhythm when it comes to trading. You don’t have to waste real money to practice though as many platforms give you access to a demo account to practice with.
Simply put, a demo account gives you access to virtual money which you can trade with using real forex rates. A lot of today’s top traders first started trading with a demo account. It’s an even bigger recommendation for people on a budget so that they get their money’s worth with each trade.
Increase Your Capital Weekly
The truth is that you can make major gains with a small amount of money using various financial instruments but you really need a lot of patience to do so. When it comes to forex trading, small capitals are doable but they limit your chances of making a huge profit. While you may start small, that doesn’t mean you have to limit yourself forever.
To make your trades more lucrative, start to add increasing amounts to your account each week. For the first week, trade with $10. The next week, increase this to $15. This is a smart move because as you become more experienced in trading forex, you’ll have lesser chances of losing your capital. This means trading with an increasing amount of capital helps you capitalize on the experience you are building up,
Focus On A Few Currencies
Upon opening a broker’s platform, you’ll see that there are quite a few currencies you can trade with. The last thing you want happening is getting overwhelmed by the choices right in front of you. However, getting overwhelmed could put you off of your game because you are going to eye-getting into as many currencies as possible.
As you are on a limited budget, you should focus on setting your eyes on a few strong currencies first. Ideally, traders go for the US dollar, Canadian dollar, Euros, and the Japanese Yen. These are the currencies that have a stable movement usually so this means lesser risks on your end as well.
Trading on a budget is more doable as compared to stock market trading on a budget. Aside from the fact that trading periods are quicker, forex trading also has lower minimums for you to get into. Just because you are trading small amounts doesn’t mean you have to be reckless already. With a proper strategy in mind, you can turn that small capital into something bigger in the future.