Economy
Can You Make a Living Trading Forex?
Forex trading has a certain appeal to people who would like to be their own boss and work at flexible hours.
In the past, the market was restricted to big companies; however, the internet made it possible for everyone to trade currencies.
Although some people might call it an easy way to make a living, it is a huge risk, especially if you are trading a lot of cash. If you are a risk-taker and want to participate, read on for some tips on how to start making a living trading forex.
Trading forex
Before jumping into the market, you need to understand the concept of forex trading. It takes place between two parties in an over-the-counter market that is controlled by different banks in the major trading centres.
You can trade any time of the day at any hour that you see fit because there is no central location restricting you. It is all about buying currencies and selling them when their value hits the roof.
Amount of Capital Needed
Some people worry about the capital needed to start trading because they think that they must have a considerable amount of cash.
However, it is easier than they think as you can trade forex with any capital because of the availability of micro-accounts. You just have to make sure that you can afford to lose that amount without risking your ability to pay the daily bills.
Furthermore, the more you risk, the higher your earnings will be. Consider starting as a part-time trader, then become a full-timer when you are confident that you can make a living from it.
The Importance of Brokers
Making it into the world of trading on your own may be a bit hard. That’s why brokers, or middlemen as they are called in the forex market, are needed. They are the third party that makes the transactions easier and helps you find good bids. The number of brokers in the market is growing, and that’s why researchers at Observer recommend checking testimonials and looking for the most reliable brokers.
This is especially because no rules are governing the market. You should also ask the broker about the way to withdraw your earnings and the ease of navigation of their website.
Another reason why hiring forex brokers is necessary is because they can offer you a fixed or variable spread according to your deal. The perks of a variable spread are the ability to adjust your bid depending on the volatility of the market. However, volatility is a double-edged weapon because you can lose money if the value of the currency drops.
Putting a Successful Strategy
Understanding yourself and your goals will help you put a successful strategy. Before you start trading forex, you have to include the possibility of losing and winning in order to keep your expectations in check. Many factors affect your strategies such as your capital, patience, and degree of dependency on the trading money.
You get to choose the type of forex market according to your plan and whether you would like short or long-term profits. For instance, the spot forex market takes place as soon as you choose the currency pair you want to exchange.
On the other hand, if you want to earn profit in the future, you can choose between forwarding or future forex markets. The difference between them is that the future one will bind you with a legal contract regardless of the price of the currency at that time.
Consider checking the available strategies to help you in making up your mind. Some of the methods are day trading, scalping, and arbitrary trading. It is better to be flexible when it comes to changing plans after realizing that the initial one isn’t paying off anymore.
Certain factors can affect your plans such as the ratio between the risk and win rates. Even though trading forex is flexible, you have to teach yourself discipline and commitment to make money.
Predicting the Market
Although it is hard to guarantee the full return of your money, amount of profit, or cash you may lose, you can learn how to predict the market’s volatility. Some surprise moves may take place raising the value of the currency or dropping it to the ground. This can help some traders become millionaires while leaving others bankrupt.
Periods of sudden volatility are not that common, so there is always room for prediction. The most important risk possibility that you need to take into consideration is slippage. You should also know when you have achieved an edge on the market. This will help your capital grow and lead to great profits.
Understanding the industry will help you minimize the risks and increase the probability of making huge sums of money. It is better to start as a part-timer and test the market before throwing away a job that provides you with a stable income. Trading forex can be quite profitable in the long-term, especially if you put a sound strategy and deal with a smart broker.
By Dipo Olowookere
About 0.04 per cent was recovered on Friday from the loss recorded by the Nigerian Exchange (NGX) the previous due to profit-taking.
Yesterday, investors were in the market with renewed vigour, mopping up stocks trading at relatively cheaper prices.
According to data, the insurance counter gained 0.41 per cent, the banking sector appreciated by 0.38 per cent, and the consumer goods index grew by 0.14 per cent.
The gains achieved by these three sectors were enough to lift Customs Street at the close of business despite the 0.26 per cent decline printed by the industrial goods segment and the 0.14 per cent loss suffered by the energy industry. The commodity counter was flat during the session.
A total of 43 equities gained weight on the last trading day of this week, while 26 equities shed weight, indicating a positive market breadth index and strong investor sentiment.
Red Star Express increased its share price by 10.00 per cent to N13.20, NCR Nigeria grew by 9.97 per cent to N128.55, SCOA Nigeria inflated by 9.96 per cent to N14.90, Omatek appreciated by 9.94 per cent to N1.77, and Deap Capital expanded by 9.85 per cent to N4.46.
On the flip side, McNichols decreased by 8.81 per cent to N6.00, Legend Internet crumbled by 7.56 per cent to N5.50, Cornerstone Insurance crashed by 6.48 per cent to N6.35, C&I Leasing contracted by 6.29 per cent to N8.20, and Austin Laz slipped by 5.78 per cent to N3.75.
Yesterday, 539.9 million shares valued at N16.7 billion were transacted in 48,023 deals versus the 1.0 billion shares worth N31.6 billion executed in 51,227 deals in the preceding day, implying a shrink in the trading volume, value, and number of deals by 46.01 per cent, 47.15 per cent, and 6.26 per cent apiece.
Zenith Bank was the most active for the day with 54.6 million stocks sold for N3.8 billion, Jaiz Bank traded 41.5 million units worth N359.4 million, Secure Electronic Technology transacted 37.7 million units valued at N39.2 million, Access Holdings exchanged 30.5 million units for N699.2 million, and Lasaco Assurance transacted 27.2 million units worth N68.3 million.
When the market closed for the day, the All-Share Index (ASI) went up by 72.21 points to 166,129.50 points from 166,057.29 points and the market capitalisation gained N31 billion to N106.354 trillion from N106.323 trillion.
By Adedapo Adesanya
It was a positive ending for the Naira this week after it further appreciated against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, January 16 by N1.33 or 0.09 per cent to sell for N1,417.95/$1 compared with the previous day’s N1,419.28/$1.
The domestic currency also gained N2.41 against the Euro in the official market to close at N1,647.51/€1 versus the preceding session’s closing price of N1,649.92/€1, however, it suffered a N7.97 loss against the Pound Sterling in the same market window to trade at N1,901.32/£1, in contrast to Thursday’s closing price of N1,893.35/£1.
In the same vein, the Nigerian Naira depleted against the Dollar at the GTBank FX counter by N2 to quote at N1,427/$1 compared with the previous day’s N1,425/$1, but strengthened against the greenback at the black market yesterday by N5 to settle at N1,485/$1 versus the N1,490/$1 it was exchanged a day earlier.
Improved supply conditions helped keep the market within range as exporters’ and importers’ inflows in addition to non-bank corporate supply enhanced liquidity as the Central Bank of Nigeria (CBN) made no visible intervention.
Stronger external inflows from foreign portfolio investors (FPIs) and improving current account dynamics, continue to align with structural support in the wider economy.
Nigeria has seen projections of a stronger economic or gross domestic product (GDP) growth and lower inflation in 2026, with these forecasts citing improved macroeconomic fundamentals and reform impacts.
As for the cryptocurrency market, it was mixed following selloff in precious metals and lower US stocks appeared to be denting crypto sentiment.
Gold and silver, both of which also enjoyed big rallies earlier this week, tumbled 1.2 per cent and 5 per cent, respectively while key US stock indexes — the Nasdaq, S&P 500 and Dow Jones Industrial Average — all reversed from early gains to modest losses in Friday trade.
Dogecoin (DOGE) shrank by 2.2 per cent to $0.1370, Ripple (XRP) slipped by 0.8 per cent to $2.05, Ethereum (ETH) went down by 0.7 per cent to $3,228.56, and Bitcoin (BTC) slumped by 0.6 per cent to $95,086.80.
Conversely, Litecoin (LTC) appreciated by 3.2 per cent to $74.48, Solana (SOL) rose by 0.4 per cent to $143.70, Cardano (ADA) jumped by 0.2 per cent to $0.3942, and Binance Coin (BNB) increased by 0.1 per cent to $935.88, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
By Adedapo Adesanya
Oil prices settled higher amid lingering worries about a possible US military strike against Iran, a decision that may still occur over the weekend.
Brent crude settled at $64.13 a barrel after going up by 37 cents or 0.58 per cent and the US West Texas Intermediate (WTI) crude finished at $59.44 a barrel after it gained 25 cents or 0.42 per cent.
The US Navy’s aircraft carrier USS Abraham Lincoln was expected to arrive in the Persian Gulf next week after operating in the South China Sea.
Market analysts noted that it doesn’t seem likely anything will happen soon. However, the weekends have become the perfect time for actions so as not offset the markets.
The market had risen after protests flared up in Iran and US President Donald Trump signalled the potential for military strikes, but lost over 4 per cent on Thursday as the American president said Iran’s crackdown on the protesters was easing, allaying concerns of possible military action that could disrupt oil supplies.
Iran produces approximately 3.2 million barrels per day, accounting for roughly 4 per cent of global crude production, so it was not a coincidence that markets rallied sharply through Tuesday and Wednesday as President Trump canceled meetings with Iranian officials and posted that “help is on its way” to Iranian protesters, raising fears of potential US military strikes that sent prices surging toward multi-month highs.
Weighing against those fears are potential supply increases from Venezuela.
The Trump administration is exploring plans to swap heavy Venezuelan crude for US medium sour barrels that can actually go straight into Strategic Petroleum Reserve (SPR) caverns, since not all all oil belongs in the reserve.
According to Reuters, the Department of Energy is considering moving Venezuelan heavy crude into commercial storage at the Louisiana Offshore Oil Port, while US producers deliver medium sour crude into the SPR in exchange.
Analysts expect higher supply this year, potentially creating a ceiling for the geopolitical risk premium on prices.
Some investors covered short positions ahead of the three-day Martin Luther King holiday weekend in the US.
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