“Frankly, I don’t see markets; I see risks, rewards and money”
– Larry Hite
You know, far too many people are so busy earning a living that they never really make enough money to laugh at their money problems. And way too many people are under the illusion that having large sums of money automatically makes one rich.
Wrong. Wrong. Wrong.
Listen, before we get down to business, I’m going to re-emphasize what Larry was trying to say:
If you are at all serious about succeeding trading forex in Nigeria, you need to have a clear, no-bullshit understanding of how the currency market works.
It is unforgiving, it is ruthless, and it is also tremendously lucrative.
Stay with me.
I’m just getting warmed up!
There’s a lot of money to be made in forex trading, but there’s also a number of problems that discourage Nigerians who want to invest or those whose expectations fell short.
Forex trading is easily the most liquid financial market in the world. You start with a few dollars and with a little luck, long hours of studying and practice, plus emotional discipline and gut, earn a fortune.
Later, we’ll go into the investment opportunities (no hype) and how to start trading forex in Nigeria, but first, there’s something really important we need to address.
Read Also: FOREX BROKER – FINANCIKA NIGERIA
The Most Dangerous Problems of Forex Trading in Nigeria!
At the risk of sounding redundant, the forex market is a bloody slaughter house where billions of dollars are won and lost every day.
It is not for short-sighted people.
It is not for people whose sense of reasoning is easily clouded by greed for stupendous wealth.
Yet, we can’t deny the fact that forex trading is real, and very profitable.
However, the problem for many Nigerians is not in the trading itself, as a good number are aware of the risks involved, but in all those sweet-talking frauds parading themselves as god-sent forex gurus –and promising instant wealth that they have yet to acquire!
Personally, I want to bloody their nose, blacken their eyes, and break every piece of bone in their body. But the Nigerian constitution doesn’t support outright violence. Too bad!
80% of Nigerians who go into forex do so with the misguided perception that they‘ll become overnight millionaires. It’s not that they can’t, but what nobody tells them, and what they refuse to hear even when they’re told 497 times, is that they could also lose their life’s savings trading forex.
Something else we need to talk about is the fact that most Nigerian forex traders would rather take the trial and error route, than study hard and access the experience of a successful trader who has a proven track record.
And you know, when it comes to currency markets, the most expensive, most account-crippling way to learn is through trial and error.
Not that you won’t get anywhere self-teaching and self-practicing, but by the time you finally get even, you would have learned the hard way from costly mistakes that could have been avoided if you had gone through a legit trading education and backed it up with consistent daily practice.
Another reason most Nigerian forex traders fail is because of greed.
Like Bet9ja, they go in with very little capital and expect stupendous wealth in return.
Don’t get me wrong, I’m not saying there’s something inherently disgusting about trading with little capital, but it’s the huge financial risk and trying to force the market to spit out astronomical returns that lands most of these forex traders in trouble.
Successful forex trading requires persistence, recurrent efforts and hands-on experience to master the strategies involved.
Even then, you never really get to that point where you can blow your trumpet and say you’ve learned enough. Because the market is always changing and the importance of continuous learning …..
Cannot be overemphasized!
But greed and unrealistic expectations often fools would-be traders (and even the so-called experienced ones) into risking more money than is warranted by potential profits.
Listen, do you know why so few Nigerian forex traders are successful even though there are hundreds of thousands of Nigerians trading in forex?
I’ll tell you, and I’m going to try to make it so simple that if you don’t get it now, you may never get it again!
Hark unto me:
The successful Nigerian traders who have a clue what they’re doing know exactly how much of their money is at risk in relation to projected profits. And as their trading account grows larger, capital preservation becomes more important to them.
These guys use only a small portion of their account for those high-risk trades that could either make you unimaginably wealthy or give you an instantly devastating heart-attack.
It’s called risk and money management and if you are at all serious about succeeding trading forex in Nigeria, I urge you to burn the art of risk management into every fibre of your being.
Also endeavor to learn a thing or two from successful Nigerian traders who know what they’re doing, and have results to show.
Please read that last line again and you’ll notice that I said:
“Successful Nigerian forex traders who know what they’re doing”
“Seemingly successful Nigerian forex traders who look like they know what they’re doing”
You say you notice the difference?
Good, in that case, here’s another problem with forex trading in Nigeria.
The reason most Nigerian traders fail is that they are undercapitalized in relation to the degree of trades they make. But there’s also an unforgiving reality that lies hidden like a green snake hanging from a green branch.
It is the fact that they fail to adapt to the market.
They fail to plan ahead of each trade and they are often under the illusion that there’s a fail-proof strategy that will work over a sustained period of time. Nothing could be farther from the truth because as the market changes…
It Presents New Opportunities and Risks!
The failure of most Nigerian forex traders to plan ahead (moves and counter moves) and adapt to market changes or modify their strategies accordingly, increases the risk of large unexpected losses.
Let me let you in on a little secret of the very few successful forex traders in Nigeria:
It’s not that they don’t lose money.
The truth is they lose, but do you know why they’ve won more times than they’ll ever lose?
They keep their hands, eyes, ears and sixth sense on the pulse of the currency market.
Through continuous learning and adaptation to the always changing forex market, they have very little problem finding newer ways to profit as these currency changes occur.
To add a few:
Guts, instincts, enthusiasm, persistence and a little luck.
Now, if you feel very strongly that you don’t know forex trading enough –to the extent that you feel confident running the investment yourself, or that you don’t have enough time, but have a deep-seated desire to invest and make good returns.
It can be done.
I believe I’ve given you an honest picture of the reality of forex trading, here’s the next piece of information I think should interest you:
Read Also: 3 Steps to Make Money in Forex online
Forex Trading in Nigeria –How to Start and Succeed
A few simple steps:
- Open a demo account
- Practice (paper trade) until you can make a consistent profit.
- Search for a reliable forex broker that is licensed and regulated.
- Choose a forex broker
- Open a trader account
- Fund it
- Pick a forex trading strategy that works for you (If you practice well with your demo account, it shouldn’t be much of a problem. Once you have developed your strategy, endeavor to perfect it over time as the market changes
- Start trading
- Trade without emotions
- Do your homework, ask questions, verify claims, don’t make hasty or emotionally clouded decisions (or else you’ll be making yourself 400% more vulnerable than you already are)
Hope this helps.
Please understand that the above list is not a sacred list. I’ve probably missed a few things and I believe you should do some further research.
You may not have all the time in the world, but before you trust anyone with your investments, it helps to do some thorough background check.
Here’s a little slice of optimism that should sound music to your ears:
In 2016, the triennial report from the Bank of International Settlements revealed that the average daily flow of cash in forex trading was ….
More than $5.1 trillion!
It is true that commercial and investment banks conduct most of the trading in the forex markets, to the tune of millions and even billions of dollars, so what good can your miserly $200 or $1,000 do?
Here’s the catch:
For individual forex investors trading from Nigeria, the speculative opportunities in trading one currency against another is often worth the investment for those who are serious, patient and persistent enough to trade over a sustained period of time.
Naturally, parameters like economic strength, interest rates, and politics affect the supply and demand for foreign currencies and there’s a huge profit potential for individual traders when the value of one currency increases against the value of another.
Simply put, you can profit from changes in the exchange rate between two currencies.
Furthermore, the fact that with a laptop, steady power supply and internet connection, you could quite literally become your own boss working from your kitchen table or anywhere you damn well please, is tempting enough for any Nigerian to consider forex trading as a full-time career.
Since the forex markets run all day (24-hours, 7-days a week) you can trade at your convenience. And if you’re not considering it as a career option, a few hours a day is usually enough.
And you don’t necessarily need to have a financial background.
People who become masters at creating mind-shattering sex didn’t come into this world with a PHD in sex anatomy and sweet spot logarithms.
Read Also: 10 Ways to Diversify Nigeria Economy
Just be willing to learn, become a student of the currency markets, stay emotionally disciplined and always-always keep an open mind.
That is all.
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