Frequently Asked Question
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What is Forex trading
Firstly, the forex is short for foreign exchange. Trading forex means trading foreign currencies and this is done in the foreign exchange market. The forex market is the largest, most fluid market in the world.
When you travel overseas, you convert Rands to Euros or Pounds. At the moment, R10 000 will get you approximately 527 Pounds Sterling. What you receive depends on the foreign exchange rate which goes up and down depending on supply and demand. How many Pounds you get for your Rands depends on the value of the foreign exchange currency at the time.
We offer professional and accredited forex courses at the best prices in South Africa. Even if you are a beginner or a pro > This course is for you. On a bigger scale, if a large international company needs to
pay an overseas supplier; they will lose money if the foreign exchange rate is not favorable. If possible, it would be better to hold back the payment until the forex exchange rate is more favorable.
You trade foreign currency like you trade stocks. You buy foreign currency (for example, US Dollars or British Pounds) before it increases in value and sells it before it decreases in value. This is forex trading.
Forex traders make basic purchases and sales transactions as well as take positions on currency pairs such as spot contracts, forwards, derivatives and contracts with a difference. The foreign exchange market is open 24-hours a day on weekdays and forex trading takes place on many different exchanges across the world. We offer our courses to everyone in South Africa including the big metropoles Johannesburg, Pretoria, Cape Town, Durban and more.
Is forex trading risky
Forex trading does involve risk as does any form of investment. There is a risk of sharp fluctuations in foreign exchange markets as you would get with stock, bond or commodity markets. The main difference though is the foreign exchange market is highly liquid in nature and this reduces the risk of being able to buy or sell where a trader cannot find another market participant to transact with.
To further reduce the risk, forex traders use fundamental and technical analysis before making any transactions. If you are getting involved in forex trading for the first time, it’s important to remember to conduct your own due diligence. This requires you to keep tuned into global developments and world events that may improve the value or devalue a foreign currency.
How can I learn forex trading
The best way to learn forex trading is to learn by doing it. And you can do this with an online forex trading course that involves opening a demo account and trading “on paper” until you’re confident enough to invest your own hard-earned capital.
It’s important to take your time and learn to trade properly before jumping into the foreign exchange market and losing money. You need a thorough understanding of how the market works and methods used for forex trading. This will help you manage your risk, make profits and set yourself up in sustainable business.
The next step up from a demo forex trading account is opening a micro forex trading account that allows you to make small trades with your own money Experience is key with forex trading and you can get this experience with demo trading. Once you’ve got a good grasp of the technical foundation of forex trading and the mechanics of making forex trades, you can start trading in real-time with real money.
The only problem with learning forex trading online with a demo account is you don’t experience the pain of losing your money and this can make you a little blasé.
The next step up from a demo forex trading account is opening a micro forex trading account that allows you to make small trades with your own money
You’re exposed to minimal risk and can enter and exit the market making nominal gains and losses without too much drama. It’s the best experience you can gain and the best way to learn forex trading without losing the shirt off your back.
What are the best forex trading strategies
When people talk about trading strategies, they’re talking about a specific trading method or discipline. Discipline is extremely important in forex trading because it requires a trader to stick to a well-thought-out trading plan.There is no magic solution to determining the best forex trading strategies because traders are individuals and what works for one person, could ruin someone else. What it comes down to is having a consistent trading style that works within a certain time frame.
You’ll choose the right trading style or strategy based on current market conditions and knowing what works best comes with time and experience.
These are short-term trades, sometimes only lasting a few minutes. A scalper tries to beat the bid/ask spread and takes some profit off the top before closing.
As the term suggests, this is where a trader exits the market before the end of the day. A trader might opt for this to manage the risk of large overnight shifts forex spread. This is usually where beginners start when they’re learning forex trading.
This is where a trader holds a position for several days. The aim is to profit from short-term gains on price patterns with the trader looking at the forex spreads every half hour or hour.
This is where a trader takes a long-term stand on a position with the aim being to maximize profits from major shifts in price patterns. Positional trading requires extensive experience and immense patience with some room to maneuver in trading successes.
We offer professional and accredited forex courses at the best prices in South Africa. Even if you are a beginner or a pro > This course is for you.
Why it’s important to learn forex trading
Forex trading for beginners has never been easier. The foreign exchange markets are easily accessible if you have internet connectivity and a decent laptop. However, it can be daunting and even starting with mini lots, there’s a risk of losing more money than gaining profits.
As mentioned, you can’t really learn forex trading; you have to experience it. You’ll gain more knowledge and experience from an online forex trading course with a demo account than you’ll get reading up on the subject on Google. You need trading experience and knowledge and over time will be able to spot forex indicators and develop a sound trading strategy.
Forex trading courses introduce you to the best trading tools, platforms, and products and take you step-by-step through the trading process backed by insight from the best trading professionals in the world. Experience, experience, and more experience is what you need to learn forex trading.