In an environment of high unemployment levels, international foreign exchange trading firm, Tailored Forex Trading, has said Malawians could earn income through trading of forex. Our reporter, TAONGA SABOLA, caught up with Tailored Forex Trading Chief Trading Officer, Cjay Mhango, to understand the concept of forex trading.
What is forex trading?
Forex trading is the act of speculating on the foreign exchange market, with the aim of making a profit. It can also be known as FX trading, foreign exchange trading or currency trading.
Trading forex involves buying one currency while simultaneously selling another. This is why forex quotes are given in the form of currency pairs made up of the quote currency (the currency being sold) and the base currency (the currency being bought).
The price movements in currencies are governed by a wide variety of factors but tend to reflect the state of a“ countys’ economy.
Is forex trading gambling?
Forex trading is not gambling if you know what you are doing. With proper education, one will learn the risk management structures which are the foundation of every strategy in forex. Therefore, when a trader enters a trade, all risk parameters have been accounted for.
Gambling in forex is when a beginner trader enters the markets with no technical data supporting the trading set ups.
“I feel like currency pair will go up.” This is what we have heard from most inexperienced traders. Whereas an experienced trader analyses the markets with both technical and fundamental data and makes a judgement based on what he/she has concluded. And this is what separates gambling from forex trading because the former is a game of hope and chance while the latter is an outcome of strategy.
How much can one make per day?
This depends on one’s trading strategy. We are swing traders meaning we focus more on the long term move rather than short term moves so our profit making is not based on a daily basis but on a long term basis. But with all that being said it doesn’t mean we don’t take short term opportunities when we see them, and when we do we manage to make well above a few thousand dollars.
But all this is not the same for everyone because that can be 10 percent growth in my account and yet that same 10 percent in someone’s account it’s just a few dollars or a few hundred dollars.
So there is no round figure I can say you are guaranteed to make this much everyday but I can always tell you that in the long run you are guaranteed profits if you follow your strategy.
What is the best strategy in forex?
The best strategy is mastering and managing your emotions, sticking to your trading plan and making sure you use risk management. That’s the best advice I could give a new trader that is the holy grail of forex.
Can one become a millionaire trading forex?
Well, definitely yes. If you follow your trading plan and risk management model, it is possible. Please don’t get me wrong. All this can be achieved in the long run not overnight.
The problem with a lot of new traders is that they expect that they will make a million after their first trade, which is absolutely wrong. Like I said this is not gambling. A big win is not just one big win. It is a series of small wins added up all together to make a big win.
So yes, it is possible to make a million from the markets. I mean it is a $7 trillion market anyways. But people need to be patient, disciplined, and follow the process.
Like everything in life and anything worthwhile it takes time to master this craft. With the right training, mentoring we will get you there.
Is forex trading a scam?
Well truth be told. Just like any industry out there, there are always people who are painting a bad picture about our industry and the unfortunate part is that we have a lot of those people in forex. So how can we know who is legitimate? You may ask.
Well in Zimbabwe we have come up with an association called Forex Traders Association of Zimbabwe (Fotraz). What we do is we certify all our traders to see if they are really legitimate. Our trainers are also certified. Our vision it to make sure that each country in Africa including Malawi has this association so that they verify traders. Not only that, but the same association will be the official representative between traders, trainers and the government. The role of the association is to protect citizens from scammers.
Lastly, tell us more about yourself?
My name is Cjay Mhango, Chief Trading Officer of Tailored Forex Trading. Our firm in partnership with our partners, Forex Trading School Africa owned Kuda Manzanga will look to empower thousands of Malawians in 2019.
The Forex Trading School Africa has the best trainers on the continent and are training people in five African countries.