Forex Trading in South Africa for Beginners

Forex Trading in South Africa: How to Trade in this Market As a Beginner

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Forex trading in South Africa or the financial markets contribute to the proper functioning of many areas of the economy in South Africa. Shares of companies in the energy sector, automotive industry, banking industry, real estate, retail industry and others are listed on the stock exchange. But how does the Forex market relate to this?

Most of these companies carry out daily foreign exchange transactions for various purposes: to buy equipment and raw materials, to invest in foreign projects, to receive income from foreign sales, etc.

For this reason, exchange rates fluctuate daily. Anyone can make money with Forex trading in South Africa. All you have to do is understand Forex Trading.

What is Forex trading?

To answer the question “What is Forex Trading?”, Let’s understand what Forex is. Forex includes foreign exchange trading. In English, the abbreviation Forex means Foreign exchange or “foreign currency”.

To trade Forex legally in South Africa, it is mandatory to open an account with an accredited broker. The broker acts as an intermediary between the financial markets and ordinary citizens. At the same time, the broker tries to do everything to ensure that the Forex trading (FX trading) conditions are as satisfactory as possible to the clients.

After opening a trading account, the question arises: how to trade Forex in 2021 in South Africa. In other words, which trading strategy to choose in the near future.

Trading is about understanding when to buy and when to sell. Therefore, any novice trader should choose the most attractive currency pairs (we often start with the major pairs: EURUSD, GBPUSD, USDCHF, USDCAD, USDJPY, AUDUSD) and decide which signals to use to open and close positions.

Understand trading in minutes a day

Trading signals should be researched and verified. This is the answer to the question “how to learn to trade?”

Fortunately, you don’t need the full tutorial to learn trading – you just need to constantly develop yourself and move towards the goal. To begin with, it is important to define the basic language of trading, such as a stock , bond, ETF, support level, resistance level, Forex correlation, Bid, Ask, trend, a flat, etc.

Then you need to highlight and analyze the types of analysis: chart, technical, fundamental, Price Action, VSA and others. Then, in each type of analysis, consider 5-10 of the most popular patterns (or patterns), highlight the ones that interest you the most, and start practicing them.

Mastering Day Trading

This is a narrower question, because trading and investing can last for different time periods: from milliseconds to several years.

To understand how intraday trading works, let’s define day trading. It is trading in a trading day. That is to say from 00:00 to 23:59.

How to trade intraday Forex in South Africa? It is necessary to establish a trading plan assuming that a position can be opened from a few minutes to several hours. It is convenient to use Timeframe M5, M15, M30 and sometimes H1.

The approach is similar: try new analytical methods every day and improve your skills. Over time, this will give results.

How to open a Forex account with the market leader in South Africa?

Who is the Forex market leader in South Africa? It is a regulated and reputable broker who has proven themselves over the years. Normally, such a broker offers clients a free trading platform and allows them to trade a large number of assets.

This broker offers tight spreads and small commissions. It warns customers about the risk of losses, so he advises opening a demo account first and then switching to a live account.

To open an account with such a broker, such as CM Trading in South Africa, you need to register an account with them, indicating the country, last name, first name, e-mail and telephone number. Then make the request to open an account and complete a questionnaire. And finally send the supporting documents and fund the CFD & Forex trading account. You can now start trading.

Image Courtesy: pixabay.com

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