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onomewrites

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  1. MUST HAVE FINANCIAL LITERACY SKILLS What is financial Literacy? Financial Literacy is the set of skills and knowledge that allow you to understand: · The financial principles you need to know to make informed financial decisions and · The financial products that impact on financial well-being. Things to focus on in building your financial literacy skill 1. Understanding the key financial product you may need throughout your life -- including bank accounts, savings plans, retirement savings plans, and basic investments like stocks, bonds and mutual funds 2. Understand basic financial concepts like interest rate, investment return, risk, diversification and so on 3. Understanding money and financial issues – even if you don’t really like to talk about them Sound Decisions -- You will have to make choices about saving, spending, budgeting, investing and managing debt throughout your life. Examples are getting education or another degree, starting a new job, buying a house, starting a family, getting ready to retire and living your senior years. Change Management -- You will have to proactively manage changes that affects your everyday financial well-being including events in general economy like recent collapse of financial markets, rising unemployment and the threat to high inflation. Some Basic Tips i. Identify ways to earn and save money. The rule of saving is “live below your means’’ in other words, do not spend every penny you make. ii. Create a realistic spending plan and stick to it. It may need occasional adjusting when a situation changes in your life, but practice discipline in sticking to your plan. Always have a budget iii. Reduce impulsive buying. Avoid buying anything until you’ve had time to determine how it will fit into your spending plan. If it doesn’t fit, don’t buy. iv. Don’t not make too many high risk investments -- when the promised reward is too good to be true, better to risk only money you can afford to lose. Also make your investments via a reputable investment firm/broker -- whether stocks, real estate or bonds. v. Let your savings work for you; leave savings in investment accounts that allow them to grow in a compounding way (the interest/gain earning extra interest/gain). vi. Shop for the best investments -- a proper mix of risk to reward. Don't put all your money in a savings account to earn a meager 3% annual interest rate when you can put in Treasury Bills that are just as safe (or even safer as it is backed by the Federal Government) and will earn you 16% annual return rate. vii. Diversify. Don't put all your eggs in one basket. Don't even listen to people who say you should put all your eggs in one basket and watch it. No successful investor puts all his investment in one asset class. A hallmark of proper financial literacy is a balanced and well-diversified investment portfolio.
  2. Forex Regulations in Nigeria Some countries regulate the Forex trading market carefully restricting and limiting the brokers’ activity. This allows for a safer trading for the customers, but it also closes out the market for other brokers damaging the competition, making it so that the remaining Forex brokers offer quite a low level of services. In Nigeria, Forex isn’t overregulated; according to the foreign exchange manual issued by the Central Bank of Nigeria in November 2006 everyone can participate in the foreign currency exchange activities as long as they are conducted via the banks or brokers registered with such banks (authorized dealers). Spot Forex market (the one that is use for on-line leveraged trading where actual currencies are not delivered) faces even less restrictions and regulations from the Nigerian government. Unlike U. S. there is no a regulating body for such Forex brokers, so any legal company with a registration in Nigeria or some other country can accept traders from Nigeria. This makes the Nigeria Forex brokerage industry a free and open market allowing the residents of Nigeria to choose from very many on-line Forex brokers. Unfortunately such variety brings in certain dangers, there are many scam brokers that seek to steal traders’ money and there are also brokers that claim to be offering excellent services but in reality offer nothing more than high spreads and some poor trading platform. So, a great care should be applied in choosing a Forex broker, it is a good idea to select only those brokers that were checked by the experienced traders and are known for their quality. A good list of honest Forex brokers was compiled by Forex Nigeria, so you could easily start trading without having to do your own due diligence on any broker. It is possible, that in the near future, Nigerian government will change the way of Forex market regulation. If more problems will be encountered by the Nigerian citizen, government can introduce some institute to register and regulate all Forex brokers. If this happens, the brokerage market will be very limited for a period of time. But until this happens, residents of Nigeria can enjoy the completely free Forex trading. Possible Problems with Forex Though on-line, Forex trading is a popular activity, here are many potential problems waiting for the newbie traders. Even more experienced traders can get a strong hit from something they’ve never encountered. Here is the list, compiled by ForexNigeria.org, of the possible problems you can encounter in your Forex trading endeavor. 1. Scam Forex brokers: -a number one problem for a starting trader and some experienced traders that want to move from one broker to another. Be advised that there are many on-line brokers that will just steal your money, or will hunt your stop-losses to bankrupt your account, or will provide no support at all. Just stay with the brokers that are reputable and trustworthy until you learn to detect Forex scams yourself. 2. Overtrading: - sometimes you will start to lose money on trading just because you stay in the market for too long. Don’t overtrade, set daily goals for profit, limit for loss and don’t trade past them. Overtrading is one of the major psychological barriers in Forex trading. 3. Wide spreads on high volatility: -some Forex brokers increase their spreads for all currency pairs during the hours of high volatility (i.e. news releases). That can damage the whole trading strategy, so you must be aware if your broker uses such tactics and avoid losing money because of it. 4. Following wrong Forex signals: -sometimes you may find yourself losing; because you follow someone else’s Forex trading signals. Actually it is a good idea not to follow any signals at all (except for the ones, generated by your trading system), especially the paid ones. Trading your own Forex strategy brings in your sole responsibility for all your trades. If someone’s providing paid Forex signals, chances are they are not very accurate. Why would one sell them if he could earn money with just trading? 5. Lack of knowledge : - the lack of required knowledge to trade Forex will dump your trading account very fast. Educate yourself; don’t let your emotions control yourself and trade only when you are sure about its success. There are plenty of free educational materials available on-line, don’t be lazy and learn whenever you have a time for it. MYTHS ABOUT FOREX As on-line Forex trading becomes more popular, it is getting cloaked in a wrap of some myths. Some of these myths are harmless, but some can be extremely dangerous to the beginning traders. To recognize such myths from reality is the basic condition of successful Forex trading. More than that, maybe after you learn about some Forex myths that they are really just myths you will dramatically change your opinion about Forex market. Here is the list of the most dangerous Forex myths: Forex trading is easy: - Actually it’s not easy at all, it’s pretty hard. It’s easy to start trading, but succeeding takes time and practice. Of course, there are talented traders that learn very fast, but generally starting traders should dedicate part of their time to educating themselves. Forex is a scam. : - Forex is a real currency market and anyone can trade there themselves and be responsible for their own decisions, so it’s hardly a scam. Forex can be compared to a stock market, but it is more volatile and the leverage is usually higher. The only scams you should be afraid of as a Forex trader are scamming brokers or scamming marketers that sell Forex e-books and sure-fire strategies. A good way to avoid scam Forex brokers is to use only well-known and tested brokers (you can choose one from the list compiled by Forex Nigeria.) Only rich can trade on Forex: - This could be true like 20 years ago, but with the fast development of the informational technologies and particularly the Internet, Forex is now open to everyone. You can start trading with just $1. And you don’t need big amounts of money to "move" the market, it’s almost impossible with the current daily volume ($3.2 trillion). All you need is practice and a trading strategy. Stop-losses are not necessary: - trading without a stop-loss is a suicide. With high leverage and no stop-loss your Forex trading account will wiped clean in no time. Learn to set your stop-losses to some point not too far from order’s entry price. Keeping losses low and profits high has always been a good move.
  3. UNDERSTANDING THE FOREX MARKET -1 Forex is short for foreign exchange, but the actual asset class we are referring to is currencies. Foreign exchange is the act of changing one country's currency into another country's currency for a variety of reasons, usually for tourism or commerce. Due to the fact that business is global, there is a need to transact with other countries in their own particular currency. What Exactly Is Forex Trading? Forex trading can be defined as the online/internet currency exchange trade or the act of simultaneously buying and selling currencies of different countries online using internet trading platforms. Forex stands for Foreign Exchange so; Forex Trading simply means Foreign exchange trading or trading on foreign currency by its exchange rate. Since Forex trading involves the disparities in foreign exchange rates, making profit or loss in Forex trade is usually determined by the economic state of different countries at a time. Since the economy of different countries is not static in relation to one another at any point in time, the Forex market is never fixed or stagnant at any point in time as well. It is a volatile market that is constantly changing and are never accurately predicted. This is where the profit or loss is made. If the currency goes up in your favor, you make profit, it goes down against you, you make loss. Understanding the Forex Market To understand the Forex market and be good at it, you have to avail yourself to serious training in Forex trading! You must acquire the technical knowledge required in Forex trading. You must have enough time and willingness to study this ever-changing price market over a period of time and be up to date with the local and foreign news as global trends have a tendency to determine the direction the prices of the currency go, either up or down. To assist you in the learning process, it is important to use a demo account for practice. Almost all the Forex trading platforms have demo accounts where you can practice Forex trading in what looks like real time trading. The demo accounts are loaded with virtual money and in real time mode. The only difference is that you neither make profit nor loss in demo trading. You need to continue to practice with the Forex demo account until you become very proficient. You must be good with the virtual trade before you ever attempt with real money because once you are up with the real money, there is no going back, its either profit or loss. From then, it becomes investment that must be handled very seriously. Your investment in Forex trading is not something you joke with, you need to be up to date with knowledge and information. You must be into it and do research regularly. How to Get Started With Your Forex Trade Before you proceed to open an account with any Forex Broker, you must understand that not all Forex Brokers are genuine. Make a thorough research before settling with any trading platform with real time investment. I will advise you use the big and established Forex trading platforms only. Open Account with Forex Brokers Go to the website of your desired Forex Brokers and open account. Forex Broker or the Forex trading platforms is the medium through which currency is traded online. Fund Your Forex Account Before you start live Forex trade, you must fund your account. Funding can be done through direct deposit or by using your credit/debit cards. Have a Domiciliary Account This is very important for effective transaction and to enable you make a withdrawal of your profit when there is any. Some use other currency medium like the eCurrencies but at the end, it will still get to Domiciliary accounts. The Domiciliary account is used for cashing or depositing funds into your Forex trading account. Fast Internet Connection You need a very fast and reliable internet connection to be able to trade Forex in Nigeria or elsewhere. Without this, it will be difficult for you to make profit because your internet has to be fast and reliable to enable you take quick actions. High Performing Laptop This is very necessary for efficiency and accurate performance in live market. Do not make the mistake of using a wacky laptop for Forex trading. Most times, the losses people make is as a result of inefficient trading devices. The profit you make depends on your trading skills. Yes, people are still making profit in Forex trading in Nigeria and will continue to make profit as long as currency remain in use. In fact, nothing has changed and will probably change forever.
  4. UNDERSTANDING THE FOREX MARKET -1 Forex is short for foreign exchange, but the actual asset class we are referring to is currencies. Foreign exchange is the act of changing one country's currency into another country's currency for a variety of reasons, usually for tourism or commerce. Due to the fact that business is global, there is a need to transact with other countries in their own particular currency. What Exactly Is Forex Trading? Forex trading can be defined as the online/internet currency exchange trade or the act of simultaneously buying and selling currencies of different countries online using internet trading platforms. Forex stands for Foreign Exchange so; Forex Trading simply means Foreign exchange trading or trading on foreign currency by its exchange rate. Since Forex trading involves the disparities in foreign exchange rates, making profit or loss in Forex trade is usually determined by the economic state of different countries at a time. Since the economy of different countries is not static in relation to one another at any point in time, the Forex market is never fixed or stagnant at any point in time as well. It is a volatile market that is constantly changing and are never accurately predicted. This is where the profit or loss is made. If the currency goes up in your favor, you make profit, it goes down against you, you make loss. Understanding the Forex Market To understand the Forex market and be good at it, you have to avail yourself to serious training in Forex trading! You must acquire the technical knowledge required in Forex trading. You must have enough time and willingness to study this ever-changing price market over a period of time and be up to date with the local and foreign news as global trends have a tendency to determine the direction the prices of the currency go, either up or down. To assist you in the learning process, it is important to use a demo account for practice. Almost all the Forex trading platforms have demo accounts where you can practice Forex trading in what looks like real time trading. The demo accounts are loaded with virtual money and in real time mode. The only difference is that you neither make profit nor loss in demo trading. You need to continue to practice with the Forex demo account until you become very proficient. You must be good with the virtual trade before you ever attempt with real money because once you are up with the real money, there is no going back, its either profit or loss. From then, it becomes investment that must be handled very seriously. Your investment in Forex trading is not something you joke with, you need to be up to date with knowledge and information. You must be into it and do research regularly. How to Get Started With Your Forex Trade Before you proceed to open an account with any Forex Broker, you must understand that not all Forex Brokers are genuine. Make a thorough research before settling with any trading platform with real time investment. I will advise you use the big and established Forex trading platforms only. Open Account with Forex Brokers Go to the website of your desired Forex Brokers and open account. Forex Broker or the Forex trading platforms is the medium through which currency is traded online. Fund Your Forex Account Before you start live Forex trade, you must fund your account. Funding can be done through direct deposit or by using your credit/debit cards. Have a Domiciliary Account This is very important for effective transaction and to enable you make a withdrawal of your profit when there is any. Some use other currency medium like the eCurrencies but at the end, it will still get to Domiciliary accounts. The Domiciliary account is used for cashing or depositing funds into your Forex trading account. Fast Internet Connection You need a very fast and reliable internet connection to be able to trade Forex in Nigeria or elsewhere. Without this, it will be difficult for you to make profit because your internet has to be fast and reliable to enable you take quick actions. High Performing Laptop This is very necessary for efficiency and accurate performance in live market. Do not make the mistake of using a wacky laptop for Forex trading. Most times, the losses people make is as a result of inefficient trading devices. The profit you make depends on your trading skills. Yes, people are still making profit in Forex trading in Nigeria and will continue to make profit as long as currency remain in use. In fact, nothing has changed and will probably change forever.
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