For all forex trading beginners in South Africa out there, we have decided to write a Forex Trading Tutorial for Beginners South Africa guide which will help you become a better forex trader. With the intensive research contacted by our experts, they made sure that they quote from the best forex trading websites that are legitimate and trustworthy.
In this Forex Trading Tutorial for Beginners guide, you will learn everything you need to know to get started with your trading career. Forex tutorial is here to help you understand how the system works, forex trading terms, forex trading platforms, how to create a forex trading account and the risks involved with trading forex.
Just like any forex guide in South Africa out there, this guide is not different from them. It also offers basic information on technical and fundamental analysis. This includes factors that affect the stock market, economic and political events.
Best Forex Trading Sites for Beginners
|Forex Broker||Review||Minimum Deposit||Visit Site|
|CM Trading||Read Review||$250||Visit Broker
|Plus500||Read Review||R1500||Visit Broker
|HYCM Markets||Read Review||$100||Visit Broker
|Markets.com||Read Review||R1000||Visit Broker|
|FXGM South Africa||Read Review||$200||Visit Broker
|AvaTrade||Read Review||$100||Visit Broker|
|easyMarkets||Read Review||$100||Visit Broker|
|XM||Read Review||$5||Visit Broker
How You Can Trade Forex in South Africa
Since forex market is big, almost every minute their forex pair fluctuates. Sometimes the forex pairs run so fast to a point where you have to open a trade and close it within minutes after making a profit. To trade successfully as a beginner, all you need is a fast internet connection and a forex trading account.
Here is how forex trading works with our Forex Trading Tutorial South Africa. You open a live forex account with a 100:1 leverage by putting in an amount of $200 and begin trading up to $100 000 with your account. All this is made possible by leveraged trading. If you bought USD/EUR, if the USD gains against the EURO, you will gain more when you close the position on the right time. However, if the USD loses, you might lose lots of money too.
Although forex trading can help you become a millionaire, it’s also risky. That is why you need to be cautious when trading. Start with small amounts before depositing big amounts. You might lose your investments in stock markets. But you can also utilise a method called “carry trade”. Use this method to play the interest rate variation among two currencies and gain profit from swapping currency differences.
Forex Trading Tutorial for Beginners: Learn to Trade
- Sign up for your free online courses – you can begin your forex trading journey with free forex education online. There are so many forex programmes which will help you know more about forex trading and teach you a basic understanding about trading forex.
- Seminars – attending seminars is the next step. After signing up for a free forex education course, you need to attend forex workshops. A forex broker will come and teach you more about forex and how it takes to become a successful trader in the currency markets.
- Forex strategies – now that you have attended the seminar, you need to develop a strategy which will work for you. The purpose of creating a forex trading strategy is to help you manage your cash-flow. There are so many forex trading strategies or trading methods which best suit individuals.
- Mentorship or coaching – most forex mentors come from the trading and financial institutions. These individuals are experts when it comes to forex trade. You will have a one on one session with these people so that you will become a successful trader.
Are You Ready to Trade Forex in South Africa?
Forex trading is often hyped up because it is so easy to get started, even with a small investment amount. All you really need to get started with Forex trading is a home computer and about $2000 (even less with some brokers). However, just because you can start Forex trading so easily, it doesn’t mean you are ready! Here are the basic steps you need to follow before you start Forex trading online.
Learn through Forex Trading Tutorial SA
It is not enough to simply read a handful of Forex Trading Tutorial for Beginners guide if you want to start trading and actually profit. You will need to sign up for classes and seminars about Forex trading which are held by industry professionals. If you cannot find a local class, there are plenty which are offered online. It is not a bad idea to start with a basic e-course to get yourself through the initial concepts. However, you will need to move on to a more advanced course which allows you to interact with a live instructor and also has workbooks with assignments (like calculating various situations). These classes are very useful for developing a Forex trading strategy for success.
Set Up a Demo Account
Before you jump into Forex trading with real money, it is imperative that you first practice with a demo account. Don’t just use the paper Forex account for a week or two either! You should be actively trading on the demo account for at least a couple months. Make sure that you are always trading as though it were real money. Keep in mind that demo accounts do not always reflect the reality of Forex trading because the demos use real-time slippage and spikes. With real Forex trading, your trade may not happen in real time so you lose a few pips.
Find Your Forex Tools
Even if you devote all of your time to analyzing the fundamental and technical aspects of Forex trading, you alone will not be able to predict market trends. That is why it is so important to have a wide array of Forex tools at your disposal. Most of the top Forex brokers will give you access to these tools for free. Spend some time looking at different brokers to see what they offer. Expect to some tools which your broker may not offer.
Determine Your Risk
Don’t start Forex trading until you have carefully calculated the amount you are willing to risk on trades. For most traders, a safe risk is about 5% of the account amount. Traders must also determine their limit orders and stop orders.
Choose a Forex Broker
There are a lot of different factors which go into choosing a Forex broker. You will want to look at:
- What spread is offered?
- Is the Forex broker regulated?
- Check free tools or services the broker offers
- What are the margin offers?
- Type of user support available
- What is the account minimum to start trading?
Spend Some Time in Forums
Most Forex brokers online will have forums where traders can connect with each other and share tips and strategies. It is a good idea to spend some time in the forums, especially to get a feel for the mistakes which people have made. You will learn that it is unwise to put too much faith in those Forex tip websites and also about how to manage your risk.
Most forex trading beginners start trades with technical analysis. This refers to the knowledge of reading price charts. However, for traders who are more serious about forex trade, you need to do your research in order to understand how the global economy operates.
Comprehending basic fundamental indicators of an economy like interest rates, production level, employment rates and the role of central bank in regulating inflation and many more will help you trade more successfully. As you gain more experience in the forex trading market, you will realise that there are so many ways to gain an upper hand in the forex exchange.