Many Ghanaians have been hearing about forex, but very few actually know how to make money from it. For some smart investors, forex trading can be a way of earning wealth, if you know how to trade.
Many of our youths especially those between the ages of 21 to 35 years are willing to learn some high-income skills that can be used to make money online in Ghana. Forex trading is one of the easiest ways to make money online, but it’s extremely risky if not done properly.
Anyone with a smartphone or laptop connected to the internet and little basic about currency trading and exchanges can become a Forex trader and start to make money online.
What is Forex Trading?
Foreign exchange (Forex) trading is the buying & selling of foreign currencies with an aim to make a profit. Traders can place their trades in the forex market, which is an over-the-counter market that allows investors to trade currencies. This is a platform for investors, institutions, banks, and traders.
Since the value of the world’s currencies is constantly changing, the purpose is to time the buying and selling of currencies, trading one against another, so that the trader profits from currency swings with minimal losses. If you’ve ever travelled outside the country, you’ll know the importance of foreign currencies and exchange rates.
One of the biggest advantages of trading Forex is that you don’t need to have any formal requirements for starting a forex trading business. In this post, we have compiled a comprehensive guide on how anyone can make money online in Ghana by trading Forex on a smartphone device or laptop.
How to start Forex Trading in Ghana
Forex trading can now be done by anyone in Ghana, anytime, from home or anywhere through the internet. All you need to trade forex online is a laptop, good internet connection, good trading strategy tested on demo & starting capita.
Step 1 – Learn Forex Market & Terms
Before you put in your money to a live account to trade, you need to learn about the forex market. You need to understand currency pairs, trading time and other important terms about forex.
Forex exchange market is one of the largest trading markets, with a global daily turnover estimated to exceed US$5 trillion. Trading is conducted over the ‘interbank market’, an online channel through which currencies are traded 24 hours a day, five days a week. All transactions made on the forex market involve the simultaneous purchasing and selling of two currencies.
If you need to learn the basics about forex trading, I recommend you take your time and go through all the tutorials on babypips.com.
Step 2 – Choose a Forex Trading Platform
If you are ready to start Forex trading then you may have doubts on which broker should you choose to trade online. You need to analyse and before signing up with a forex broker. Below are some things to consider before choosing a forex broker:
- Transaction Cost
- Deposit and Withdrawal
- Trading Platform
The forex market is so competitive that just thinking about having to sift through all the available brokers can give you a major headache. To get started, look around for Forex broker reviews on the internet most especially online broker services that operate in Ghana. Make sure you conduct enough due diligence before deciding which broker offers values and services that best meet your needs.
I also recommend you read this guide on 6 Crucial Things to Consider When Choosing a Forex Broker.
Step 3 – Start Trading with a Demo Account
Before you trade with a live account you must have traded and make a considerable profit with a demo account. A demo account gives you the opportunity to learn to trade online without any risk.
These days, a demo account is being offered by almost every forex broker. Demo accounts are virtual accounts with virtual money which is connected to a real trading platform, receiving real data on the market. That means you can open and close trades without a single penny.
A forex trading demo account is a trading account with monopoly money in it that is connected to the live market. Trades can be placed in real time and represent what would be true losses and gains if the money were real. Before you put any money on the line with trading, you’ll need some practice. A demo account will give you the ability to practice trading without the pressure.
Step 4 – Learn to Analyze Currency Trends
For you to be able to make the right forecast about currency trends, you need to be able to analyze current trends and movements in the Forex Market. There are two main types of analysis that forex traders generally focus on, which include fundamental and technical analysis.
Fundamental analysis is the study of macro events that will alter the course of a currency pair. Technical analysis is the study of price action, including looking at momentum, trends and reversal patterns.
Currencies are always traded in pairs, such as GBP/USD or USD/JPY. We have major and minor pairs. If you’ve gone through the babypips tutorial as stated above, you must have learnt this.
The reason they are quoted in pairs is that, in every foreign exchange transaction, you are simultaneously buying one currency and selling another. Remember, if you are able to trade one currency pair – you will be able to trade all of them. If you will be trying to trade all currencies at once, you will slow down your success process.
Step 5 – Start Live Trading with Real Money
Once you have developed a winning strategy with your demo account, you are now ready to start trading with real money. While forex trading is profitable, you need to be disciplined to make money from it.
If you’re greedy, I bet you, you’ll lose a lot of money. You need to learn how to be disciplined while trading with your money, don’t attach emotions while trading.
Many of the best currency traders have taken a highly technical approach in their trading strategies. Even if you don’t consider yourself a technical trader it would be foolish to ignore what the charts are saying before making a trade. Many brokers offer traders access to charting tools that give historical price patterns indicating whether to buy or sell.
With the steps shared above, you can learn how to start forex trading all by yourself. However, I also recommend you do more research on forex trading, watch videos as well so you can familiarize yourself with the trading platform.
Only when you have carried out enough free trades and you have developed a successful trading Forex trading strategy, you should consider trading with real money.
Also, remember that emotions are not good in the Forex trading world. Sell or buy at or near your price target you set in your head. Don’t let your emotions convince you that the stock is going to go a lot higher than reality. When you become greedy and don’t take your profits you’ll see them all wiped out right before your eyes.