It is normal for most forex trading beginners to wonder whether is forex trading profitable in Kenya. Although this question seems straightforward, it requires a complex answer that could go both ways, yes and no.
Yes, forex trading in Kenya is profitable only if you are willing to put in the work without any shortcuts. This means the reverse is also true. If you don’t put in the work in learning and getting a winning strategy, then forex trading could become a nightmare.
Because statistics don’t lie, on average, over 75% of all forex traders are not profitable. They end up losing in the long term. Although this is a fact, there is nothing that stops you from being among the profitable 25%.
This group represents those traders that are disciplined, invest in learning, and are patient enough to achieve profitability.
How to become a profitable forex trader
The rules of becoming profitable in forex trading are simple yet very difficult for the majority of traders to implement. This is mainly because of our human nature and lack of essential strengths such as patience and emotional control that are key to winning in this game.
When trading in the largest market in the world, the opportunities are limitless. What do I mean by this? Forex market turns over on average 6 trillion dollars daily. In terms of volume, this is way bigger than all other markets such as the stock market and crypto market combined.
Hence, if you are a strategic and disciplined trader, you will not only become profitable trading forex but also make a career out of it. You could be wondering what I mean by making a career! The answer to this is there are thousands of people whose job is only trading in forex.
Isn’t that a good life? Just sitting in front of your computer and making money in a matter of hours if not minutes. You don’t even need to get out of the house.
Well, this is the ultimate reward that you get If you manage to become among the top 25% of the successful forex traders. Below are a few tips on how to become a profitable forex trader in the long term.
1. Investing in Learning
There is no alternative to learning if you want success in forex trading. You have to put in the work and time to understand the markets.
I almost forgot to mention that forex trading involves trading in different global currencies. Normally currencies exist in pairs meaning you trade one against the other. All You Need To Know About Forex Trading in Kenya.
The reason why I mentioned currencies is that you have to learn how they operate and the factors that influence them to become a profitable trader. As an example, if you are trading the US dollar, you need to know all the factors that could make it rise and fall.
These are the triggers that inform market decisions for you as a trader. By the way, it is key to note that you can make money both ways in forex trading. Either through buying or selling. What you need is to get the prices movement prediction correctly
Forex trading learning curve could take months if not years. Remember in the introduction, I mentioned putting in the work? This is what I meant. Learning for years to become profitable. A reality that most traders are unable to fulfill resulting in quitting midway.
Hence, if you want to become profitable learn! Learn! Learn! There are various ways to learn forex trading. However, this could form a whole article in itself. So, keep close for a follow-up piece. Only those traders with adequate learning can help answer is forex trading profitable in Kenya?
They say patience is a virtue. A statement I completely agree with. It is also one that you not only need to embrace but also learn if you want to become a profitable forex trader.
As a trader, patience enables you better manage your emotions and greed. Some of the key traits that cause losses in forex trading.
Patience helps a trader to wait for the market opportunities to form. Remember that forex trading is not about trading blindly, it is like hunting. You have to wait for the right opportunities before you can make an attack.
Most of us naturally are unable to hold. We want to keep going even when the journey is not clear. However, only those traders that are patient in the market succeed in the long term.
Sometimes you have to wait for a whole month to get a good trading opportunity. Remember that making a wrong trade comes at a price in form of losing your money. This is not a secret that making constant losses will result in losing most if not all of your capital.
Unfortunately, this is the price you pay as a trader for being impatient in the market. The ability to wait gets better if you have a good trading strategy. This acts as a guideline for your trading journey end to end.
3.Come up with a risk management strategy
Risk management is a key strategy that you need to become profitable in forex trading. It acts as an insurance when a trading decision doesn’t go as per the plan.
This is the same reason we take insurance in normal life. To help reduce the amount of loss in case things don’t go as per the plan.
Occasionally, you will get into forex trades that end up turning into losses. No trader gets it correct all the time. In such a scenario, the best strategy is to cut your losses early before they get bigger.
To understand when to exit the market even when in loss, you need a risk management strategy. This is what guides you on when to exit the market to avoid losing more. One of the factors that define this strategy is the risk to reward ratio.
This is the ratio of the losses to your profits. A good strategy ensures that you are making more than you are losing as this is the only way to become a profitable trader.
Is forex trading profitable in Kenya?
From the above scenarios, forex trading in Kenya is profitable as long as you are willing to go all the way and do what it takes. The key lessons today are that there are no shortcuts. However, if you play by the rules, it could become very rewarding.
If you believe you have what it takes, go for it!
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