Currency Trading

South Africans do it online

Online Trading
online trading.jpg
Many South Africans are considering online currency exchange trading as a result of the increasing cost of living and tough economic conditions.

This is according to Iain Giffen, consulting trader coach at Knowledge to Action, a leading forex training, development and education organisation, who says that there has been an increased awareness in the potential for earnings from forex trading and this has led to an increase in the number of people trading online around the world over the past five years. 

According to the Bank for International Settlements (BIS), a Switzerland-based banker to central banks, the average daily turnover in global foreign exchange markets in April 2010 was estimated at $3.98 trillion a day, and grew approximately 20% since April 2007. 

“Retail trading worldwide is estimated to account for $150 billion per day as it has become far more accessible to the average individual: greater internet access, the expansion in the number of retail brokers, as well as the provision of online trading platforms has made it easy for anyone to start trading. 

"The very difficult economic climate, the resulting drop in job security and challenging financial conditions that small business owners face has encouraged many individuals to seek to become less reliant on employers and traditional forms of generating an income,” says Giffen.

However, he adds that it is estimated that 95% of those who start trading online go on to fail as there are substantial risks for anyone who is not educated on how forex trading works, or who is not psychologically prepared for the challenges they will face.

“Many potential traders are often not successful as they do not have a strong psychological mindset to deal with the pressures and challenges encountered in a live trading environment. Without proper education the risk of losing a significant amount of money is high.”

Furthermore, he says that the FX Market moves more than any other market, 24 hours a day. “In addition, most trading is leveraged so traders need to be aware of the risks involved and know how to manage them before committing substantial capital to their trading.”

He says that anyone who is looking to take control of their personal wealth creation, as well as develop an additional income stream is a potential trader. “Many people assume that expert analysis skills are a prerequisite for being a successful trader:  this is simply not true.” 

However, Giffen explains that if an individual wants to become a successful trader they need commitment and determination, which should in turn lead to a desire to put in place the required level of education and implement the changes needed to develop a robust trading psychology.

“Over 1 000 South Africans have been trained by Knowledge to Action alone since its launch in 2011,” says Giffen.

“Coaching and education is best done through an effective coaching and training programme with an experienced trader coach who has successfully been through the process him- or herself. 

"Being provided with proven rules of engagement, a solid grounding in risk and money management and good mental training, all of which can be applied easily and effectively in a live trading environment, will give any new trader the best possible platform for  success,” concludes Giffen.

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