Since the evolution of the internet, one of the best things to happen to human existence is the financial market. Millions of people all across the globe trade on the financial market. In Nigeria, the financial market has recorded more millionaires than any other institution. If you are looking to go through the entrepreneurial route in Nigeria, then it is considered a good option. All that is required is the dedication to the craft, and understanding the whole rudiment of trading in the financial market.
Forex trading is very different from stock trading. In Nigeria, trading in the financial market hasn’t been well understood by people, and its effectiveness has not been taught across the country. Many people are still in awe at the way the financial market works and how they can benefit from the market. A lot of questions people ask in Nigeria are when to go live when learning how to trade the financial market. In this article, insights would be shared on how and when to go live when trading the financial market.
What is Forex Trading?
Forex trading is the process of weighing in on currency pairs majorly called “speculating” to make a profit. Currencies are being traded in pairs, so when you change one currency against another, what you are doing is called speculating. The person who speculates on whether a currency will rise or fall is called a ‘Trader’ or ‘speculator’.
There are so many factors that affect the movement of currency from one hand to another in Nigeria such as; political and geopolitical events, government policies, economic, war, time zones, and more all affecting the demand and supply of forex. But, after much practice and it’s time to go live, there are some certain factors you need to put into consideration.
What is Demo Trading?
A demo account is simply an account that is being offered as a service by trading platforms, funded with fake money for a potential customer to gain some experience on what it feels like trading a real account. In Nigeria, there are lots of trading platforms that offer many of these such services.
When to Move from Demo to Live in Forex
When trying to transition from a demo account to a live trading account, some things should be put into consideration to make sure that you are mentally set and prepare to take the risk involved. They are the following;
- Excited to Live Trade
- You have Mastered Your Trading Strategy
- You know Your Risk Management
- You have the money you can lose
- Consistent profit with your strategy
- Avoiding quick wins
- Emotional Management
This is the first step to going live when trading in the financial market. Make sure you are comfortable with the service provider you are using. There is a certain type of comfort that comes with using a trading platform you are in tune with. It gives you a feeling that you can navigate all around the screen of your trading platform.
Excited to Live Trade
When you begin to exercise some form of excitement trading, you will have control over some psychological effects that affect trading. Excitement gives you a feeling that you have mastered a craft, and you find joy in doing it.
You have mastered your trading strategy
This is another sign that tells you that you are ready to go live. This comes from practicing on your demo account testing your strategies and figuring out ways you can beat the market.
You Know Your Risk Management
This is one top skill of every successful trader. In Nigeria, institutions where financial markets are being taught, risk management is a very crucial skill that every trader must know to remain successful over time. When you know your risk management, you know your trade.
You Have Money You Can Afford to Lose
In every article you read about the financial markets in Nigeria, you must have come across a line that advises you to trade with money you can afford to lose. This will give you the edge in being more comfortable and relaxed with trading over time. And can also make you more of a profitable trader when you master this act.
Consistent Profit with Your Strategy
When you have been able to develop a strategy that works for you. You should try it multiple times to be sure it is not a fluke. After such successful attempts, try and work on live trades with it. If you can have more wins and losses, then it is certain that your strategy is unique and one that can keep you profitable.
Avoid Quick Wins
This is the fastest route to blowing your trading account to zero if you focus on quick wins. This is seen oftentimes in Nigeria where newbies in the financial markets start going for these quick wins and end up with their accounts blown away in no time.
Your emotions play a large role in your success as a forex trader. Don’t let your emotions get the best of you while trading. Always put your emotions aside and trade strategically to ensure a more successful trade. If you don’t get your emotional aspect right, there could be a whole distraction to your trading culture which will affect the whole trade.
Trading can be an interesting journey as well as a catastrophic one. Application of principles is key to ensuring a successful journey as a forex trader. In Nigeria, we have witnessed huge companies go down the drain because of a lack of management structure and principles.
You have to determine what works for you because trading on the financial market is an indication that – you are on a journey either to a satisfying or a bad ending. The trading guidelines in this article will assist you in making the right decisions n knowing when to go live trading forex, and when to slow down and learn more using the demo account.