The international foreign exchange market is the biggest financial market in the world, with a daily trading volume estimated to be around $7 trillion. Nigeria is one of the nations making full use of the global, decentralized forex trading market, where currencies and other financial assets are traded.
The majority of people are looking for ways to make money online in order to supplement their incomes as a result of how quickly the internet is developing and becoming a significant part of daily life.
Even if the popularity of forex trading has increased as more participants enter the market, many Nigerians have lost a lot of money due to bad behaviours.
According to publicly available data, between 73% and 95% of the broker’s clients lose money. There is always a sizable portion of traders that are neither earning nor losing.
Leverage is not always a “positive” thing. To be more accurate, consider it as “risky or safe” rather than “excellent or awful”. In the context of sound risk management, high leverage shouldn’t be used too frequently, especially by novice and intermediate traders.
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An experienced trader can try a high leverage play with a novel and promising trading method if they have some extra capital to experiment with, say, a tiny portion of their portfolio. Despite the huge potential benefits, the losses would quickly deplete the initial investment.
Never trade or invest more capital than you can afford to lose.
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They feel it’s better to engage in more transactions
If you have too many open orders, you risk losing organizational and analytical overview—unless you are dealing with one or two assets that you are intimately familiar with. Find a realistic template of how many motions you can handle concurrently and become used to tracking one to two orders every day.
Bring the total number of trade orders back down to a sensible level if you start to lose track of an asset.
To increase their profits, some savvy traders open many orders. This, however, is evidence of their growth in ability and experience over a protracted period of time.
Prioritize quality over quantity. Be sure to always make the best trade possible. If you do the arithmetic, you may earn a respectable return with just one good trade on average per month.
Rich quick scheme mentality
This is possibly the most pervasive forex misconception that unfairly associates the service with the “gambling” label. With practically everything, it’s impossible to make “easy money,” especially when doing so consistently and honestly.
Money must be worked for. Successful forex traders invest a lot of time and energy into their intellectual, psychological, and mental growth as traders.
Follow well-thought-out trading methods while doing market research, reading relevant literature, and using the free online forex education that brokers provide. Additionally, always use appropriate risk management techniques. It won’t be “instant and quick money,” but rather long-lasting and hard-earned gains.
They are market prophets
You can’t, of course. However, a lot of individuals deceive themselves into thinking they can. This is a mental trap one can fall into that finally results in losses. Dealing with probability is the only course of action, and it must be supported by research, technical analysis, strong psychological foundations, and an effective risk management approach. Never base a trading choice solely on intuition, gut instinct, or hunches.
Anyone promising to sell you the ability to predict the market or make such claims is neither trustworthy nor reputable.