Forex Trading in Nigeria
I just did a trend research on Google and was surprised to discovered that Forex Trading In Nigeria is growing steadily. If you check the following link, Google Trend, you’ll discover that Lagos Nigeria tops the chart for searches for the term Forex. A flip through the blogosphere also reveal that there are many Nigerian bloggers writing on how to make money from forex trading.I was particularly touched by a warning post made by the blogger Nigerian Entrepreneur. Unlike others, he was out with a warning that Nigeria is not ripe for Online Forex Trading, you can read his views in the following link, Forex Trading in Nigeria, who is making the money. Of course many other Nigerian bloggers are of contrary opinion and some commenters on NaijaEcash blog points out pertinent issues that makes Forex Trading a viable online business for Nigerian Entrpereneurs.
Is Forex Trading for Nigerians?
The answer is yes. Anyone anywhere in the world can successfully trade forex. All it takes is the right knowledge and a strong determination to succeed at it. However, I agree with Nigerian Entrepreneur that it is not a feat to be achieved overnight.There are several stages that a Forex Trader will have to pass through before he or she can become an experienced or successful forex trader.
The Novice Forex Trader
At this stage the new trader is simply fascinated by the idea of making some fast cash by trading Forex. He has been convinced by internet marketers or close friends that it is the way out of cash crunch. He has only gotten lured by the success stories. Nobody has taken time to tell him that for every Fx success story he hears there are possibly thousands sad stories of forex trading failures. He is probably practicing with a demo fx account and getting all excited about how simple the whole foreign exchange market system seems.The Trainee Forex Trader
At this stage, he has gotten convinced enough to start trading with a live Forex account. He commits small cash and watch as the market fluctuates. At this stage he is either luck to make an initial success which further encourages him to go deeper into Forex Trading or he makes some bad decisions which land him into some losses. Either way, his mentor and friends are there telling him that things will definitely get better because he can always turn around his initial loss. The truth is, he has started to realize that Forex Trading like any other business requires hard work.The Junior Forex Trader
At this stage he has come to understand that he needed to acquire certain trading skills and get himself more educated on how the fx market works. He starts making research online and reading tutorials on Forex Trading. At this stage, the trader is prone to trying out different fx trading system trying to discover the one that actually works. Every new trading method promises a better result and he wants to try it out. As at this stage, he will become familiar with the myriads of automated forex trading systems available, Alpari, FabTurbo, f9d1, etc. Terms such as moving averages, Fibonacci lines, support and resistance, pivots, fractals, divergence etc will continually ring in his mind all day long. Welcome to reality.The feeling that he is not experienced enough to make constant profit will probably send him to forum and online forex communities to seek out other forex traders that may have suggestions that will help him out. Often times, their claims of success and prescribed methodology will terribly clash with the Forex Tutorial ebooks and manuals he has been studying. This stage is where most of the new entrants into Online Forex Trading calls it quit. The probability of him quitting at this stage is high, because, while others are claiming that they are making so much money, his trading account is testifying that he is either doing it wrong or those guys are liars. How long he remains in this stage is highly dependent on how soon he figures things out.
The Senior Forex Trader
At this stage, he has acquired sufficient knowledge to understand that there are two types of factors that determine who succeed in Forex Trading. The first set of factors are controllable because they have to do with the fx trader. However the second set of factors are uncontrollable because they are purely determined by market factors and economies of the nations whose currency are being traded.So, the forex trader settles down to master how he can control to a large extent those factors he has control over. e.g. his decision to buy, hold or sell! He has come to realize that emotions have no business in forex trading and others opinion are not to be taking without crosschecking. He will be developing and testing his own unique system of trading forex. He is no longer depending on other’s forecast or predicted market signals. As his trading system produces both positive and negative results, he will be more interested in fine tuning the efficiency of the system than abandoning it for others magic trading system.
The Master Forex Trader
Only very few gets to this stage. The master forex traders is a professional who has come to rely more on fx trading system he personally developed and has tested severally over the years. He understand the fact that no human being can accurately predict the forex market. The best anyone can do is to make a guided forecast of future events in the fx market.He has his own definition of what risk he is willing to take and what is outside his bound of trading. He is not moved by noise in the forex market by so called experts who prey on the ignorant newbies to make money instead of profiting from real forex trading. He doesn’t win all the time but his losses are within bound and he doesn’t get angry when his decision turns out to be faulty. Instead, he takes time to discover where he went wrong. He doesn’t judge his trading system by one trade but looks at periodic portfolio performance to determine if his forex trading system is getting more wins than losses.
He is highly educated in money management and his forex trading portofolio is handled with utmost carefulness. Every trade is giving a good analysis and he closes a bad trade as soon as he realize he has made a mistake. He knows that subsequent trades will turn out well because he has a fx trading system that is reliable.
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