On a daily basis my WhatsApp, emails, social media inboxes are flooded with lots of Forex related questions. Some questions are simple but a bit tricky to respond too. Take for instance this question “What is Forex trading?”. That’s the simplest question but it is impossible for me to respond to it over one chat because there is no one straight line answer to it.
OK, back to the topic of today. Today I want to answer the public regarding this question. Over the past few weeks, this question has been very popular, it keeps coming up. People are asking me if Forex trading will ever end or disappear.
These are the people who are following me and have probably read online about Forex trading and they are a bit skeptical. I am not great at convincing people regarding Forex trading. I am however very giving in terms of information and that is what I do best. People can then decide if my information is useful or not.
Why Do People Even Ask This Question?
I will start by saying that whoever asks if Forex will ever end or disappear is clearly lacking information of what exactly Forex is all about. I also do understand why most people are confused. Most of the times when people see/ hear the word “Forex”, words like scam, easiest way of making a quick buck without putting any effort, pyramid schemes etc quickly come to mind. It is simply because of how it is misrepresented by those who are involved in it.
I have published a blog post and tried to simplify it and answered some of the questions that you may have regarding this subject. You can check out the blog post HERE before you continue reading here. Whatever that I am about to say will make more sense after reading the blog post mentioned above because you first need to understand what it is all about.
Will Forex end/ disappear then?
As long as there are different countries using different currencies, they’ll always be Forex. It will always exist because Forex is all about exchanging money. We all participate in Forex in some way. When you go to the UK from SA, you won’t be able to use your ZAR in UK. You’ll definitely need to exchange your ZAR to GBP. That is now you, participating in Forex because you just sold your ZAR and bought GBP.
Where Does Forex Takes Place?
Forex market has no physical location where it takes place, but the exchange of money is something that happens daily via banks. I always say there are no stupid questions in my books and I mean it. I am glad that people are asking me this question more often and now I finally got a chance to sit down and pen this blog post responding to it.
As long as there are still Central Banks and no universal currency, there’ll always be Forex. Maybe the question should be around regulation and about whether it is legal or not. Ending or disappearing? I really don’t think so. Is Forex trading even legal in South Africa? Find out Here
Why Is It so Important To Trade With A Regulated Broker?
Talking about regulations, please ensure that whatever broker you trade with is regulated. It can be an international Forex Broker, but it must also be regulated by the regulatory body in your country. I always prefer to use FSCAregulated brokers formerly known as FSB. This is for the safety of your funds and for your peace of mind.
Trading with unregulated Forex Brokers can be a cause for Forex trading to end or disappear for you when they disappear with your money, that’s what they usually do. Otherwise, feel free to explore how you can make money through Forex trading. Should you need to be coached on that subject, you can enroll for my Private Coaching. Thank you for stopping by and kindly share this post.
Welcome back. I have been getting a lot of questions regarding a trade war and why does it even happen. I have also received requests to publish a simplified version of what a trade war is. There’s been a lot happening lately between the United States and China.
I always try to simplify things for my readers and this post is another attempt to simplify the trade war concept, tariffs and so forth. Because of how I trade , I am very interested in understanding how the markets work and anything that might cause a market reaction. I also trade a lot of Geopolitics.
What exactly is a trade war?
A trade war is an economic conflict resulting from extreme protectionism in which states raise or impose tariffs or other trade hindrances against each other in response to trade barriers imposed by the other state.
What is a Protectionism?
Protectionism is an economic policy that restricts imports from other countries by imposing or raising tariffs on imported goods and import quotas.
What Is A Tariff?
A tariff is a custom tax paid on imports or exports between states and it is also used to regulate foreign trades.
What Are import quotas?
The import quota is a physical limitation of the quantities of different products (imports) from foreign countries that can be imported into the country within a specified time period.
Why Are Tariffs Used?
The main aim of using protective tariffs is to protect the country’s domestic industries and to make the goods that are imported from foreign countries to be less attractive and more expensive and basically to promote the use of local goods.
They are used when the country’s domestic industry feels threatened by foreign industries. It is also to put domestic products which are in the same market at an advantage by making the imports more expensive. The disadvantages are when the other party retaliate and raises their tariffs on their exports to protect their domestic products as well.
What Is US Trade War?
Since the 22nd of January 2018, United States and China have been engaged in a tradewar involving the mutual placement of tariffs. US President Donald Trump had declared in his campaign that he wants fix China’s longtime unfair trade practices.
Example Of A Trade War
A recent ban of Huawei in the US markets has “broken” the internet and the news have been circulating and they are on everyone’s tongue. China said that they will retaliate. It is also reported that sneaker giants Adidas and Nike have written a letter to Donald trump asking him to reconsider the tariffs imposed on Chinese imports.
I hope this post helps. If you find it valuable, kindly share with your peers. You can also subscribe to this blog for weekly publications. Should you need private coaching ,feel free to Contact me. Thank you for stopping by.
Forex trading has become so easily accessible through Online Forex Brokers with just as little as a $5 start up capital. Is it even possible to trade successfully with such a small amount?
Hello amazing readers, It’s been a while since I published a new blog post except for the weekly economic news. Do you guys see the new clean look of this blog though, I can’t get over it. I hope you love it and you’ll also find it easy to navigate through. I cannot thank the designer enough for this stunning website and mostly for the top of the range service that they offer, they are truly amazing. You can view their portfolio Here. Let me get back to the business of today.
A lot of times I get people asking me about the minimum capital to start a live Forex trading account. I always try to be as realistic and practical as possible through my answers.
How realistic is trading a very small account?
You can walk into a shop and see R9.99 Per Kilo on chicken, but walking inside the shop does not mean you’ll come out with a R9.99 full chicken (you may not come out with any chicken at all) this is simply because you don’t really want to buy 1 kilo and obviously you’ll end up paying way more than R9.99. This is just me trying to simplify my explanation and just to get my point across (I’d love a nicely grilled piece of chicken right now though)
The same goes with Forex Brokers, they have their set minimum amount which does not really mean it will make sense to you. It can be extremely challenging to trade a very small Forex account, It’s reality. A while ago I published a blog post just to give an idea of how much can one start a live account with. I did that to share a realistic approach towards Forex returns. You may view the post Here.
Your earning potential is highly linked to your Capital
Not everyone has a privilege to start a live Forex account with at least $1000 or more. I have always maintained that it is not only about your trading capital but it is mostly about you (which is why I focus more on trading psychology). It is also the truth that your earning potential is highly linked to your start up capital. We need to keep it real. You may like to read this post about Forex returns Here.
The way you can nurture and grow a small Forex account is the same as you can do with a bigger account. These two require the same discipline and money management.
Tips on how to grow a small Forex trading account
First of all, you need to accept the fact that you won’t make much from a smaller account. Secondly, you need to start viewing your Forex trading account as an investment. You can set aside a portion from your other income such as your salary or business. If you don’t have any other income, this is the reason why you need to have another income stream. Find a way to earn an income (there’s always a way if you look hard enough). By all means, find that other income so you can be able to invest more in your trading capital. Add this portion to your Forex trading account month after month just like you’d do with your savings account.
How much can you set aside per month to invest in your Forex trading account?
I don’t know, but let’s say you can manage to set aside R1000 (you can even take from the money that you use for entertainment if you have to). Deposit it into your Forex account. This will not only increase your trading capital, but it will definitely shift your mindset and help you to view your Forex trading account as a serious investment opportunity that it is. It will surely become one of your real investments and you won’t be easily moved by what social media feeds you regarding Forex trading.
Forget the hype and keep it real for your sake
Most traders still believe in all the hype that is sold to them on social media regarding Forex trading. When you get to this stage where you are no longer hyped up and easily influenced by a “get rich overnight” mentality, you start to see progress. Progress is what you need and unfortunately you won’t find it overnight.
Is it bad to start small?
Starting small is OK and it also has its advantages. That thing can teach you lots of patience which you’ll always need by the way. But you don’t have to stay small. Investing more money helps in creating a better trading environment where you don’t worry much about chasing a number of pips because you can take just a few pips which can give you tangible profits. You also want to see your efforts of logging in to your trading account being rewarded.
I am so sorry if you were expecting a Forex trading system which will supercharge your smaller account and turn it into a million bucks overnight. This was just me stopping by and giving you practical tips which I’ve personally used.
I hope this helps. If you find it valuable, please help me to reach out to as many people as possible by sharing this post using the share buttons. Thank you so much for stopping by and reading. Happy trading , don’t forget to keep it real and contact me for private coaching.
I must say, it felt so great to type this post, I guess it’s the environment (my stunning site, sorry to keep on mentioning it but I just can’t get over it, I promise to keep it to myself next time, today is my first day akere). Stay tuned for more practical Forex tips and also subscribe so you can receive my weekly blog posts straight to your email. To subscribe, just tick on ” Notify me of new posts by email” at the bottom of the post.
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