What is Forex Trading – Quick Guide to Becoming a Pro

The Forex market offers numerous opportunities to profit from speculation on price volatility between a variety of different global currency pairs. 

As such, Forex trading has become very popular in Nigeria as it is broadly accessible to anyone with a stable internet connection and an understanding of currency price fluctuations.

That said, there are some significant differences between beginner and pro Forex traders, and in this crash course we provide traders in Nigeria with a guide to becoming a pro trader and enjoying consisted returns from their Forex trading endeavours.

1.     Have a consistent approach

An experienced trader is someone who has built up a substantial trading account and honed their trading abilities over time through Forex trading in Nigeria.

As a beginner in Forex trading, your goal should be to become a consistently successful trader, but this does not necessarily mean that you will become a full-time or “professional” trader right away.

First and foremost, your goal should be to make a steady amount of money each month based on the size of your trading account, not to become a professional trader straight away.

2.     Educate yourself on the fundamentals of Forex trading

Take advantage of the many free beginner’s courses available online to obtain a firm foundation in the fundamentals of Forex.

Once you’ve done this and have a firm grasp on the basics of the Forex market, such as what it is, how it works, and how to make sense of it, you may go on to more advanced concepts, such as price action Forex trading in Nigeria.

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3.     Focus on building a price-action trading strategy

You will build chart-reading skills that you can use for the rest of your life if you focus on price action trading as your primary technique.

In order to avoid becoming an emotional trader, it is important to take this step now to refine your trading strategy and build an orderly and disciplined trading routine.

4.     Identify your own risk profile

It is imperative that you thoroughly grasp the industry before making any significant investments.

Determine how much money you have available, look at trader reviews to get a sense of what to expect, and explore the markets and currency pairs you’re interested in.

Even if investing in Forex is profitable, you should only do it if you are confident in your abilities. This holds true regardless of the currency pairs you approach.

Must Read: Forex Trading Platforms in Nigeria

5.     Make use of stop losses and take profits

You should always have a stop loss in place when trading, regardless of your style or approach. There are two ways to close out your trade: a stop loss and take profit.

If the price exceeds this level, even if you are not physically present at your trading terminal, your transaction will be immediately closed.

When you use a stop loss order, you can rest assured that you will not suffer a loss greater than the limit you have set if the market swings against you. When you set up a take profit order, on the other hand, you ensure that your trade is closed off once you’ve reached your profit target.