NAIROBI, Kenya, Mar 5 – As the hard economy times bite across the globe, Kenyan youth are now turning to the foreign exchange market, which is usually known as forex or FX.
This is the largest financial market in the world with a daily trading volume of over $6.6 trillion which is significantly higher than the stock market, which has an average daily trading volume of around $200 billion.
Forex trading has gained significant popularity in Kenya, attracting a growing number of Kenyan investors looking to engage in the global currency markets.
However, one needs proper training to equip themselves with Forex Trading skills that will enable them to maneuver the markets professionally.
Nairobi School of Forex is an institution that is geared towards skilling the youth(aspiring traders) who want to venture into forex trading.
Geoffrey Ng’ang’a Gichanga, the Head of Training at the institution opines that, “Before delving into the profitability of forex trading, it is important to have basic training of how it works. The forex market is the largest and most liquid financial market in the world, with an average daily trading volume of $6.6 trillion. It operates 24 hours a day, five days a week, and involves the buying and selling of different currencies. The goal of forex trading is to buy and sell currencies with the aim of making profits.
The school was started with the goal of enabling Kenyan youth acquire FX trading skills that will equip them with a better understanding of the global FX markets.
Nairobi School of Forex has a variety of courses which include traders course, investor’s course, personal finance course and introducing broker’s course. The Traders course is a forex trading course meant for novice and aspiring traders to help them get started with their trading journey. The investors’ course is a forex trading course meant for investors who lack the time or skill to trade by themselves.
Requirements for setting up FX Training Institute
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At Nairobi School of Forex, we work closely with brokerage firms to ensure that our students get the best services through brokers who are regulated by the Capital Markets Authority CMA which is the regulatory body in Kenya.
We train our students on how to identify reputable and reliable brokerage firms.
Tips for Forex Trading for Beginners in Kenya
Geoffrey reveals that one of the main reasons why people are drawn to forex trading is the potential for high profits. With the right strategy and risk management, traders can make significant gains in a short period. This is especially appealing for beginners in Kenya who may be looking for alternative sources of income.
He says that they must adhere to these tips for a good forex trading experience:
Accessibility and Flexibility
Forex trading is accessible to anyone with an internet connection and a computer or mobile device. This makes it a convenient option for beginners in Kenya who may not have access to traditional investment opportunities. Additionally, the forex market operates 24 hours a day,5 days a week, allowing traders to choose their trading hours and fit them into their schedules.
Low Barriers to Entry
Compared to other financial markets, forex trading has low barriers to entry. Traders can start with a small amount of capital and still have the potential to make profits. This is particularly beneficial for beginners in Kenya who may not have a large amount of disposable income to invest.
Understanding of Financial Markets
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A solid understanding of financial markets, including how they operate, factors influencing currency prices, and the dynamics of supply and demand, is crucial for forex trading.
Discipline:
- Following a trading plan:This plan outlines your strategy, risk tolerance, entry and exit points, and other rules. Sticking to the plan, even when emotions tempt you to deviate, is crucial.
- Managing emotions:Fear, greed, and FOMO (fear of missing out) can cloud judgment. Discipline helps you stay calm, rational, and objective in your decision-making.
- Patience:Waiting for the right trading opportunities and avoiding impulsive decisions is key. Remember, consistent profitability is a marathon, not a sprint.
Processes:
- Developing a trading strategy:Research and choose a strategy that aligns with your personality and risk tolerance. Backtest your strategy to assess its effectiveness in different market conditions.
- Risk management:Always use stop-loss orders to limit potential losses on each trade. Determine your acceptable risk per trade based on your account size and overall risk tolerance.
- Record keeping:Maintain a trading journal to track your trades, analyze your performance, and identify areas for improvement.
Forex trading can be emotionally challenging, requiring discipline, patience, and the ability to control one’s emotions, such as fear and greed. Developing a resilient mindset and sticking to a trading plan is crucial for long-term success.
Technical Skills
Familiarity with trading platforms, charting software, and order execution methods is necessary for executing trades efficiently and effectively.
