Few years ago, Forex Trading was a venture only for the “big boys” and when I say big boys, I am talking about Banks, Financial Institution, Pension Fund, individuals with millions of naira, etc. However, with the introduction of internet, everything changed including how the currency market operates.
With the introduction of internet, anybody can tap into this multi-trillion dollar industry, while staying at home and from a computer or smart phone. Unfortunately, only a few Nigerians ever venture into forex trading.
In 2007 when retail Forex Trading was first introduced into the Nigerian soil, so many Nigerians dived into it without proper orientation on how it work and the procedures involved, just like how we all dived into the Ponzi scheme called MMM without proper investigation and later got our fingers burnt.
Many Nigerians went into Forex Trading thinking it was a get rich quick option but later they realized it was just like owning and running a business, which requires lot of hard work, focus, dedication, patience and enough capital.
In this article, I will explain why Nigerians should venture into forex trading and the how they can smoothly go about and make money.
Below are some of the reasons why Nigeria should venture into forex trading?
Trading in the Foreign Exchange Market does not require a physical location or address, as you can still make your money from anywhere, from your sitting room down to your bedroom.
No Transportation Fares
Many employees spend more than 40%-50% of their salary on transportation and at the end of the month, they still figure out they are without saving or investment. In Currency Trading, there is no need for frequent movements as you do you need a physical customer to sell to or buy from. So technically, you can just be at the same area for a month and be making your money.
In Nigeria, 1 United State Dollar (USD) is equivalent to 350 Nigerian Naira (NGN), the aim of trading is to be consistently profitable let us assume that we can be earning $50-$100 monthly. That will be approximately N17,500-N35,000 but where the pain is, is when you want to deposit to your broker (because of the exchange rate) but the reward is worth it.
Unemployment and Under-Employment
From statistics, a good portion of Nigeria population is unemployed and more than half of the working force in Nigeria is under-employed. Example imagine a graduate earning less than the minimum salary in Nigeria (minimum salary is N18,000, which is about $50).
From the examples above, those are good reason why we should venture into forex and even if you are employed, you need to have a second source of income.
Though forex is lucrative and many are able to pay their bills from it there are many who have gone into it and fail. The question that is being asked is what do these people do differently from the successfully traders.
One of the differences between the successful traders and the fail traders is the application of the knowledge they have acquired. The average Nigerian would want to have someone to mentor him while the other would read from various traders and learn from them.
CHECK OUT: How To Survive In The Forex Business Part I.
While the other will chooses to learn from a mentor who probably is not profitable in Forex Trading, the successful ones will gain knowledge from different people through reading of various books.
The other reason is RISK MANAGEMENT, just like owning a company and managing your risks and loss while maximizing your profits. There are many forex traders in Nigerian who have burnt there account in a span of 1 week just because they cannot offset and manage their risk.
In summary, we have seen reasons why Nigerians should venture in forex trading and why people, who have ventured into it, sometimes end up failing. Similar to starting a business, Forex Trading should be treated and natured like a real business, right from the management of capital, to the knowledge and the emotions towards it.
Are you are Forex Trader or you are considering to become a Forex Trader please comment below, I would love to hear your experience.