FOREX TRADING IN NIGERIA

What Tools Do I Need to Start Trading Forex and Costs

2008-04-30T13:11:00.000+01:00

A computer with a high-speed Internet connection and all the information on this site is all that is needed to begin trading currencies online.

What Does It Cost to Trade Forex?
An online currency trading (a “micro account”) may be opened for with a couple hundred dollars. For a micro account, I'd recommend at least $1,000 to start. For a mini account, I’d recommend at least $10,000 to start off.

Why Trade Foreign Currencies?

2008-04-30T12:49:00.002+01:00

There are many benefits and advantages to trading Forex.

Here are just a few reasons why so many people are choosing this market:
• No commissions.
No clearing fees, no exchange fees, no government fees, no brokerage fees. Brokers are compensated for their services through what is called the bid-ask spread.

• No middlemen.
Spot currency trading eliminates the middlemen, and allows you to trade directly with the market responsible for the pricing on a particular currency pair.

• No fixed lot size.
In spot Forex, you determine your own lot size. This allows traders to participate with accounts as small as $250 (although I explained why a $250 account is a bad idea).

• A 24-hour market.
There is no waiting for the opening bell - from Sunday evening to Friday afternoon EST, the Forex market never sleeps. This is good for those who want to trade on a part-time basis, because you can choose when you want to trade--morning, noon or night.

• No one can corner the market.
The foreign exchange market is so huge and has so many participants that no single entity (not even a central bank) can control the market price for an extended period of time.

• Leverage.
In Forex trading, a small margin deposit can control a much larger total contract value. Leverage gives the trader the ability to make nice profits, and at the same time keep risk capital to a minimum. For example, Forex brokers offer 200 to 1 leverage, which means that a $50 dollar margin deposit would enable a trader to buy or sell $10,000 worth of currencies. Similarly, with $500 dollars, one could trade with $100,000 dollars and so on. But leverage is a double-edged sword. Without proper risk management, this high degree of leverage can lead to large losses as well as gains.

• High Liquidity.
Because the Forex Market is so enormous, it is also extremely liquid. This means that under normal market conditions, with a click of a mouse you can instantaneously buy and sell at will. You are never "stuck" in a trade. You can even set your online trading platform to automatically close your position at your desired profit level (a limit order), and/or close a trade if a trade is going against you (a stop loss order).

• Free “Demo” Accounts, News, Charts, and Analysis. Most online Forex brokers offer 'demo' accounts to practice trading, along with breaking Forex news and charting services. All free! These are very valuable resources for SMART traders who would like to practice their trading skills with 'play' money before opening a live trading account and risking real money.

• “Mini” and “Micro” Trading:
You would think that getting started as a currency trader would cost a ton of money. The fact is, compared to trading stocks, options or futures, it doesn't. Online Forex brokers offer "mini" and “micro” trading accounts, some with a minimum account deposit of $300 or less.

Forex Advice and Tips

2008-04-08T12:21:00.002+01:00

I have here a few tips and pieces of advice to follow when trading spot forex, like I always say, forex trading is not for everyone so be sure you really want to go into it before you take the plunge.

1. Never add to a losing position.

2. Always determine a stop and a profit objective before entering a trade. Place stops based on market information, not your account balance. If a "proper" stop is too expensive, don't do the trade.

3. Remember the "power of a position." Never make a market judgment when you have a position.

4. Your decision to exit a trade means you perceive changing circumstances. Don't suddenly think you can pick a price, exit at the market.

THE MARKET HAS CHARACTER
5. In a Bull market, never sell a dull market, in Bear market, never buy a dull market.

6. There are times, because of lack of liquidity, or excessive volatility, when you should not trade.

7. Trading systems that work in an up market may not work in a down market.

8. There are at least three types of markets: up trending, range bound, and down. Have different trading strategies for each.

9. Up market and down market patterns are ALWAYS present, merely one is more dominant. In an up market, for example, it is very easy to take sell signal after sell signal, only to be stopped out time and again. Select trades with the trend.

10. A buy signal that fails is a sell signal. A sell signal that fails is a buy signal.

11. It's always easier to enter a losing trade.

12. If you are feeling superstitious; don't trade if something bothers you.

Why Forex

2007-11-08T11:54:00.000+01:00

The best money maker, a lot better than buying company stocks. Its ROI cannot be compared to any other investment plan except for maybe venture capital investment which is still relatively new in Nigeria.

Its the biggest singular market in the world today, trading is in excess of 2 TRILLION Dollars,. can u imagine that ???. How much in naira....

The future is coming quickly upon us, very soon millions will be on the Internet trading foreign currency. Forex trading is gaining momentum by the day. Now is the best time to join the wagon to success. Just make your own money from the daily 2 trillion changing hands everyday.

You do not have to sit in front of your computer all day long to trade the Forex, although once you see the power of Forex trading you might want to. My teaching methods will show you the correct entry and exit points. All you have to do is glance at the charts occasionally to see if correct entry point is approaching, and if it is then get in on the trade.

Everything you need to trade in the Forex market will be provided to you.

The world is getting more complex, but getting smaller at the same time. The Internet has made information accessible to anyone on the planet. I urge you to educate yourself in the techniques of Forex trading, as it is already becoming the best way to increase your income from your own computer.

2007-11-06T11:31:00.001+01:00

Trading Patterns and Methods

2007-11-01T20:50:00.000+01:00

1. Trade the Breakout
The principle behind trading the breakout is to enter a trade when the price
‘breaks out’ of a tight range, because often it tends to keep moving in the
same direction. We use our our charts to spot this trading opportunity.

2. Trading Tops and Bottoms
Trading tops and bottoms can be more risky than the other two strategies
because you are trading against the trend i.e anticipating that the market is
overbought/oversold and might turn in the other direction. It is best to use
the 10 or 15 minute charts for this method. It is more risky using the 5 min
charts, but you still can apply the same techniques.

When to EXIT trades
The goal of this trading guide is to teach traders to take 5-20 pip profits at a
time. You can set profit LIMIT orders to achieve this, or you may want to move
your stops as your position becomes more and more profitable.
**Make sure that you don’t let a winning trade become a losing one, by using
trailing stop orders.

How to use HEDGING to your advantage
Hedging can be a useful tool to the Forex trader. When you have an open
position, for example, you are long on a USD/JPY trade and you right click your
trade on the platform, a menu will pop up and you have a choice to Hedge
your trade. If you click Hedge, you will automatically open up a position in
the opposite direction at the current market price without canceling out
your other position and without margin increase!. In the above example you
would now have a USD/JPY trade long and short. You will now neither gain or
lose any equity in your account because the gains and the losses will cancel
each other out.
Hedge in an emergency: Hedging a losing trade won’t solve your problems, but it will
1. Keep you from more losses
2. Give you time to think about what happened to your bad trade and
3.Give you a second chance.
Some traders will hedge losing trades instead of stopping out there position, because they have a chance to win back the losses of the original bad trade.

Example: You are looking to ‘Trade the Trend’ so you go long on the
EUR/USD, using the indicators. The indicators signaled BUY
so you opened up a position. In case of a bad trade, you choose to
hedge instead of using a stop loss (be careful when doing this). Your
‘Trade the Trend’ indicators didn’t work and your position goes against
you, you hedge your trade. Now you have a losing position and a winning
position going in the opposite directions. You didn’t use up any more
margin. What do you do now?
My recommendation: When your position is hedged, you are safe and
you won’t lose any more money in your account. Here is what you should
do:
1. Wait until another chart set up occurs and proceed to step 4. or Exit
the trading platform.
2. Wait till the next trading day or session
3. Look for the DTF indicators the next day.
4. Instead of opening up another position, simply get rid of the bad
position that was hedged. So if the indicators the next day signaled
long in the EUR/USD, like in the above example, then you would get
rid of the short, losing hedge and hope that the price will rise enough
to erase the previous days losses to make a profit.
5. If your position moves against you again you can hedge that position
again and repeat steps 1-4.
Hedge a winning trade: You may also hedge a winning trade to protect your
gains, if you don’t want to completely close your position. When you do this you
won’t gain or lose any more money with that position. The advantage to this
would give you the opportunity to keep trading those positions in the future and
give you a break. You can always right click on your position and choose ‘close
with hedge’ to close both positions at once. If you hedge a winning position you
can follow the above steps 1-4 to keep trading your position the next trading day.
** Please note that hedging can get complicated. Try to keep it as simple as
possible and try not to have a web of hedged and unhedged positions open at
the same time—as it becomes exponentially more difficult to keep track of, and
what positions to let go etc...
** Hedging is also optional and you don’t need to learn how to use this tool if you
choose not to. You can be a successful trader by simply using stop and limit
orders.
Understanding Risk Management

Understanding risk management is a very important reality when trading the
Forex Markets. Losing trades will happen, and managing those losses are the
key to success. A good rule of thumb when setting your stop losses is the 5-7%
rule. If your trading account is at $2000, then set your stop loss so that you don’t
lose more than 5-7% of the total value of your account. If you used this rule in
this case, you would stop out a losing trade when you were down $100-$140.
This is important, because if you don’t manage your losses well, you can easily
lose 50% of your trading account on 1 bad trade. You do that a couple of times
and you will lose all of your risk capital. It is better to take smaller losses and try to maximize your winning trades. So be careful and deliberate when setting your
stops on your trading platform.
Step 6. Open a Live trading account
Now that you understand the basics and have been demo trading, you
are now ready to open a live trading account and join the Trade
trading team.
If you have found this step-by-step currency-trading guide useful and helpful and
if you decide to open up a live trading account through me, I will personally give you the customer service and support to assist you with your new account.

Wale Ketiku
COO forexnigeria.com

Six Steps to Success

2007-10-31T16:44:00.001+01:00

The goal of this guide is to instruct and teach potential traders how to trade
the currency markets. The objective of trading is to trade the forex market and move to try to gain small to medium sized profits in any given trading
day. This is how this guide will help. Most readers will not have the time or
resources to ‘position trade’ like the major institutions and banks do. They (major institutions) tend to look at the big picture holding onto trades for weeks or months.

The Forex Profit System FPS, is specifically designed for use with the 1, 5 or 10
minute charts, with the goal of taking 5-20 pip profits per trade—closing
bad trades out using tight stops, or hedging any losing trades. The following steps will show you how to do this.

Step 1. Choose an online Forex Firm

What to look for in an online Forex Broker:

A. Low Spreads.
In Forex Trading the ‘spread’ is the difference between the buy and sell price of any given currency pair. The lower the spread saves the trader money. Most firms offer 4-5 pip spreads in the Major Currency pairs. The best firms offer clients 3-5 pips.

B. Low minimum account openings.
For those that are new to trading, and for those that don’t have thousands of dollars in risk capital to trade, being able to open a mini trading account with only $250 is a great feature for new traders.

C. Instant automatic execution of your orders.
This is very important when choosing a Forex firm. You want instant execution of your orders and the price you see and ‘click’ is the price that you should get. Don’t settle with a broker that re-quotes you when you click on a price or a broker that allows for price ‘slippage’. This is very important when trading for small profits.

D. Free charting and technical analysis
You need a firm that gives you access to the best charting and technical
analysis available to active traders. The firm that I recommend gives clients FREE professional charting services and even allows traders to trade directly on the charts.

E. High Leverage
You want high leverage—the ability to trade a large amount with a small
margin deposit. The brokers I recommend offer .25% or 400:1 such leverage.

F. Hedging Capability
You want the flexibility of opening positions on the same currency pair in opposite directions without them eliminating each other and without margin increase.

After a lot of research and personal experience, I have discovered forex brokers that will ensure your return on investment and enhance your stay on the trading floor of the forex market.

Step 2. Open a ‘Visual Trading’ Demo Account

The first step to trading the currency markets is to open a demo account. It is
important that you learn how to buy and sell the currency pairs, set stop losses,
set profit limits, and understand how leveraged margin works when you trade. I
found the best way to learn this is by constant practice.
To set up your FREE charting from FOREXNG, simply go to their website and open a demo account. The charting package in this demo account rivals any Forex Professional charting service and you will be able to set up the technical indicators that will aid you in your trading decisions. You can also reach me by email to send you a demo on CD.

Stop Order: Is a price you enter into an open position, where the trading platform automatically closes your position when the Exchange rate touches
that level. If you are in a winning trade, you can move your stop up or down
to protect profits. If the exchange rate never hits that level, then the Order
doesn’t get filled.

**tip1: If you are in a winning trade, you can move your stop to your entry
level, so that if your trade moves against you, the platform closes your
position without any losses.
**tip2: You should be comfortable setting your stop Order at 15-20 pips. If
you can’t handle a 15-20 pip loss, then you are need to trade smaller
amounts. This will help you from over leveraging your trading account.

Limit Order: Is a price you enter into an open position for the trading platform to automatically close your position at a profit. For example, you
might set your limit order at a 15 pip profit. If the exchange rate never hits
that level, then the Order doesn’t get filled.

Step 3: When to Enter and Exit Your Trades:

We will be looking at 3 different ways to trade in the Forex Market. In a
trading session, you may look for 1 or more of these approaches. The 3
techniques are as follows:
1. Trade the Breakout
2. Trade the Trend
3. Trading Tops and Bottoms
Before we look at these trading approaches, let’s answer a question or two that is often asked by new traders.

When is the best time to trade?
Because the Forex Market is open 24hrs a day, and traded on a global scale, the
question to ask is, ‘when should I trade?’. The good news is that no matter what
time zone or hemisphere you live in globally, there are always good opportunities
to trade.
The three major trading ‘sessions’ are as follows (all in Eastern Standard Time):
1. New York open 8:00 AM to 4:00 PM
2. Japanese/Australian open 7:00 PM to 3:00 AM
3. London open 3:00 AM to 8:00 AM

**Often, the best times to trade is at the beginning 3-5 hours of the above
mentioned opening times, because the major currency pairs tend to move
the most in a particular direction.

Wale Ketiku
COO Forexnigeria.com

The Trading System

2007-10-29T16:10:00.000+01:00

Foundations:
Before we begin looking at the specifics of the FPS (Forex Profit System) and how it works, let’s look at 4 building blocks that I believe to be foundations to it.

Foundation #1:

Currency Trading is not a Get-Rich-Quick Scheme.

Currency trading is a SKILL that takes TIME to learn. Skilled Traders
can and do make money in this field, however like any other occupation or
career, success doesn’t just happen overnight. Here is a great ‘formula’
for success:

Practice + Patience + Persistence = Profits

As they say, there is no substitute for hard work and diligence. Practice
trading on a demo account and pretend the virtual money is your own real
money. Do not open a live trading account until you are profitable
trading on a demo account. Stick to the plan and you will be successful.

Foundation #2:

It is highly recommended that you follow 1 or 2 major currency pairs only.
It gets far too complicated to keep tabs on all currency pairs or the majors. I also recommend that traders choose one of the majors because the spread is the best and they
are the most liquid.

The Euro/USD is the most commonly traded pair and
usually has the best ‘spread’ because of its liquidity.

The USD/Swiss Franc is usually the most volatile and moves the most during the trading week. The USD/Yen moves a lot on the news out of Japan and normally the Pound
Sterling/USD is more stable in it’s moves than the other three.

Foundation #3:

Follow and understand the daily Forex News and Analysis of the professional currency analysts.
Even though this system is based solely on technical analysis of charts, it is
important to get a view of the currency markets and the news that affects the prices. It is also important that you know and understand what the key technical ‘support’ and ‘resistance’ levels are in the currency pair that you want to trade. Support is a predicted level to buy (where currency pair should move up on the charts), resistance is a predicted level to sell (where the currency pair should move down on the charts).
Fortunately, all the best Forex news and analysis is offered free on the
Internet. Here is what you should do first:

*While you are reading the daily news and technical analysis, write
down on a piece of paper what direction the analysts are saying
about the major currency pair you are following and the key support
and resistance levels for the day.

A. Go to http://www.forexnews.com/ and you will find 24hr news and analysis on
the spot FX markets. The site will give you the big picture of how the
economic calendar and central banks affect the currency markets. A
great resource.

B. Then go to www.fxstreet.com and click on the ‘Top Forex Reports’. Here
there is a wonderful listing of all the major daily currency analysis and forecasts with support and resistance and direction forecasts.

Foundation #4:

Learn how to use the technical indicators in this course and always trade with stop losses!.
It is worth your time to be patient and learn how to use the technical indicators on the charts that you will be reading about shortly. It is important when you are trading Forex, to be disciplined and to stick to a plan. Don’t just trade your feeling. Use the technical indicators outlined and always enter in stop losses on every trade. Remember that everyone who trades has a different tolerance for losses. Depending on your risk capital, and strategy, set your stop losses accordingly.

Wale ketiku

COO

forexnigeria

Benefits of Forex Trading

2007-10-27T15:58:00.000+01:00

There are many benefits and advantages to trading Forex. Here are just a few
reasons why so many people are choosing this market as a business
opportunity:

1.LEVERAGE:
In Forex trading, a small margin deposit can control a much larger total contract value. Leverage gives the trader the ability to make extraordinary profits and at the same time keep risk capital to a minimum. Some Forex firms offer 200 to 1 leverage, which means that a $50 dollar margin deposit would enable a trader to buy or sell $10,000 worth of currencies. Similarly, with $500 dollars, one could trade with $100,000 dollars and so on.

2.LIQUIDITY:
Because the Forex Market is so large, it is also extremely liquid.
This means that with a click of a mouse you can instantaneously buy and sell at
will. You are never 'stuck' in a trade. You can even set the online trading
platform to automatically close your position at your desired profit level (limit
order), and/or close a trade if a trade is going against you (stop order).

3.PROFIT IN BOTH 'RISING' AND 'FALLING' MARKETS:
On the stock markets, you can only make money if shares are rising, but in economic recession and falling 'bear' markets, there is little chance of making big money.
Forex is different. One of the most exciting advantages of FX trading is the ability
to generate profits whether a currency pair is 'up' or 'down'. A trader can profit
by taking a 'long' position, (buying the currency pair at one price and selling it
later at a higher price), or a 'short' position, (selling the currency pair and buying
it back at a lower price). For example, if you think the US dollar will increase in
value vs. the Japanese Yen then you will buy Dollars and sell Yen (go long). If
you think the Yen will increase in value against the Dollar then you will sell
Dollars and buy yen (go short). As long as the trader picks the right direction, a
potential for profit always exists.

4. 24HRS:
From Sunday evening to Friday Afternoon EST the Forex market never sleeps. This is very desirable for those who want to trade on a part-time basis, because you can choose when you want to trade--morning, noon or night.

5. FREE 'DEMO' ACCOUNTS, NEWS, CHARTS AND ANALYSIS: Most Online
Forex firms offer free 'Demo' accounts to practice trading, along with breaking
Forex news and charting services. These are very valuable resources for traders
who would like to practice their trading skills with 'virtual' money before opening a
live trading account.

6.'MINI' TRADING: One might think that getting started as a currency trader
would cost a lot of money. The fact is, it doesn't. Online Forex Firms now offer
'mini' trading accounts with a minimum account deposit of only $200-$500 with
no commission trading. This makes Forex much more accessible to the average
individual, without large, start-up capital.

Wale Ketiku

COO

Forexnigeria.com

WHAT IS FOREX

2007-10-27T15:39:00.000+01:00

The Foreign Exchange, also referred to as the "Forex" or "Spot FX" market, is
the largest financial market in the world, with over $2.0 trillion changing hands
every single day. If you compare that to the $35 billion a day volume that the
New York Stock Exchange trades, you see how giant the Foreign Exchange
really is. In fact it is three times larger than all of the US Equity and Treasury
markets combined not to now mention the entire Nigeria stock exchange!
What is traded on the Foreign Exchange? The answer is money.
Forex trading is where the currency of one nation is traded for that of another. Therefore, Forex trading is always traded in pairs. The most commonly traded currency pairs are traded against the US Dollar (USD). They are called ‘the Majors'. The major currency pairs are the Euro Dollar (EUR/USD); the British Pound (GBP/USD); the Japanese Yen (USD/JPY); and the Swiss Franc (USD/CHF).

Because there is no central exchange for the Forex market, these pairs are traded over the telephone and online through a global network of banks, multinational corporations, importers and exporters, brokers and currency traders.

Traditionally, currency trading has been a 'professionals only' market available
exclusively to banks and large institutions, however, because of the rise of the
new E-economy, online Forex trading firms are now able to offer trading
accounts to 'retail' traders like you and I. Now almost anyone with a computer
and an Internet connection can trade currencies just like the world's largest
banks do. There are now over 6 million trading accounts worldwide up from 1.7
million in 1997.

Wale Ketiku
COO Forexnigeria.com

Introduction to Online forex Trading

2007-10-24T16:52:00.000+01:00

Over the last three decades the foreign exchange market has become the world's largest financial market, with over $2 trillion Dollars traded daily. Forex is part of the bank-to-bank currency market known as the 24-hour Interbank market. The Interbank market literally follows the sun around the world, moving from major banking centers of the US to Australia, New Zealand to the Far East, to Europe then back to the United States. Until recently, the forex market wasn't for the average trader or individual speculator. With the large minimum transaction sizes and often-stringent financial requirements, banks, major currency dealers and the occasional high net-worth individual speculator were the principal participants. These large traders were able to take advantage of the many benefits offered by the forex market against other markets, including fantastic liquidity and the strong trending nature of the world's primary currency exchange rates. Currency trading is not conducted on a regulated exchange, and as a result there are associated risks with forex trading. Just as much as much as you can make a fortune trading, you can also loose part or all of your investment if you are not careful with your trading or are not experienced enough to go into it in the first place. The forex market removes the traditional barriers that exist in other markets without restricting the forex traders' ability to make a trade at the right times.

Wale Ketiku
COO
ForexNigeria

Welcome to forexnigeria blog!!!.

2007-10-24T15:51:00.000+01:00

For some time now, I have been training and retraining people from every part of Nigeria and I have come to realise that despite all the hype on Forex trading and ecurrency trades online, my countrymen are yet to have a strong grasp of the new found love of internet savvy Nigerians who prospects for financial freedom online legally.
This has brought me to decide to setup this blog to help people who have problems with their online forex trading activites and also for those who are just entering into the online forex market.
Contributions will be highly welcome from other experts in the field and I hope to be able to answer your questions as they come. You will find both materials and links that will help develop your skills and knowledge in forex trading and also get advice on good currency trading platforms you can work with.
I hope you find your search worthwhile.
...Once again welcome.

wale ketiku