What new traders need to know to be successful before entering the Forex market
By: Nader Nurmohamed, Chief Operating Officer at Hantec Markets
People all over the world dream of financial stability, none more so than in emerging economies. When people reach their financial dreams, wealth trickles down and aids in their countries growth and development. Yet, for those wishing to trade global markets, there is often a barrier to entry: Education. Lack of access to, and education of, global markets holds people and economies back. Many emerging markets are still in an infant stage, making it difficult for potential traders to make financial decisions that can lead to economic prosperity. The Forex market is increasingly being traded in emerging economies to aid personal prosperity. Global Forex markets can be highly lucrative; however, if you’re unprepared or lack education, then the risks can outweigh the rewards.
As Chief Operating Officer for a global broker providing access to the Forex, Equity, Commodity and Bullion markets, I’m well versed in the risks and rewards of trading. With my role comes a responsibility to pass on certain knowledge. One thing that I aim to emphasize to Hantec clients, and to the financial industry at large, is the need to empower financial freedom so that investors can create opportunities to take responsibility for their financial future and that of their families. Those that trade global markets, specifically Forex markets, should be armed with proper market knowledge in order to avoid the unregulated brokers and the less transparent aspects of the industry. Hantec Markets is regulated in some of the world’s most prestigious financial centers including London, Hong Kong and Sydney. It is our duty to
provide education and research on global markets to over 200,000 clients. In recognition of our commitment to education, client service and transparency, Hantec Markets has won multiple awards including Most Transparent Global Forex broker of the year and Most Reliable Forex Broker.
To achieve financial freedom through Forex trading, traders need to start with a foundational knowledge of the industry. Questions that traders ought to ask themselves include:
- Do I understand trading graphs?
- What’s my trading goal or trading plan?
- Do I know when to close a losing position or run a profitable position?
- Am I familiar with the currencies I’m trading in?
- How much time can I devote to actively following the FX market? And the overall financial market?
- What is my risk management strategy?
- If I am profitable, will I reinvest profits or withdraw some or all of them?
If the answer to any of the above questions is no, then a new trader should take advantage of education and research tools like those offered by Hantec Markets.
Resources: Search for reputable Brokers
Over the years, I have witnessed a large number of brokers launch into the market. Many are reputable but some less so, and sadly some people have fallen victim to unregulated brokers. Before someone begins to trade, it’s vital that traders have researched and found a broker that they know they can trust. For those considering trading for
the first time, traders should thoroughly research brokers and ask themselves the following questions:
- Where is the broker regulated?
- How long has the broker been established?
- Are there any complaints about the broker online? ● Is their office address displayed on their website?
- Do they contact you regularly demanding you fund an account with large sums of money?
- Does your Broker respond to you?
If there’s any doubt that a broker seems legitimate, then it’s best to look elsewhere.
Resources: Education (strategy)
One resource vital to provide those in emerging economies with access to global markets is education. A valuable lesson for traders is to find and develop a trading strategy that works for them. Trading education can inform and guide on the strategies that would be best suited for them. Examples of strategies that a trader could use are:
- Swing trading, which has the goal of profiting from price swings. ● Day trading, where trades are made at the end of the day. ● Positional trading, which follows long term trends for major shifts in profit.
- Breakout strategy, which looks for levels or areas that a currency has been unable to move beyond, and waits for it to move beyond those levels.
- Momentum trading, which focuses on price action and price movements rather than fundamental factors.
Resources: Educational Opportunities (webinars/trading guides) Webinars and seminars are great tools as they instantly give traders educational value and can assist in developing a trading strategy that’s right for the individual.
Ultimately, the end goal of implementing educational resources is to empower potential investors with the knowledge to make trading decisions on their own. When individuals feel comfortable and confident enough to start trading, markets truly begin to thrive. Without financial freedom, people are limited to or excluded from certain milestone opportunities that life has to offer. It’s crucial that brokers insert themselves into emerging markets in order to educate people so that everyone can begin to seek out financial freedom, for themselves and their families. Hantec Markets offers a trading academy for clients and I am proud that we have a record of supporting traders in emerging markets including Africa, Latin America and the Far East. Alongside our Corporate Social Responsibility projects in these regions, our commitment to educate and give back is on our DNA and something we do frequently. Empowering financial freedom is what we have done best since we were founded over thirty years ago.