Buying a Forex robot and letting it do your trading is not a good idea as a way to get you feet wet in the forex market, although they can be quite helpful later on in terms of automating the execution of your well-tested strategy. If you learn to trade forex by yourself, you are much more likely to get to a point where you can day trade forex consistently and successfully. Read up, browse the web, sign up for Foreign Exchange trading courses and use your demo account to try out your ideas.

Money you can afford to lose is another more popular term for risk capital. These are your speculative funds, if you lose all this money it will not significantly impact your life. If you are using money you cannot lose then you are using scared money for your trading. Its the money that when in danger of dissipation, will create undue stress in the trader.

You are playing with fire if you trade with scared money. After all, even the greatest trading methods cannot always deliver the profit at exactly the time you need it, in the amount that you need. A number of people fall in to this trap. Of course no one is happy about losing money. But losing is a part of Forex trading and even the most accomplished traders still take a loss every now and then. Throwing good money after bad is justified by newbies on the grounds that it creates a better average price to their position.

The logic here is that once things turn around then they will be able to break even more quickly. This can create a large, disastrous loss out of a situation which started as just an minor loss.

The lesson here is plain to see. Risk control equals reward control. And until you have established an exit value to deal with market contingencies, the prudent move is not to trade. Controlling your risk preserves your capital and extends your trading by way of eliminating unnecessary losses. For instance. Obviously, having merely two opportunities to profit is not advisable and one is well advised to look at alternatives that will allow for more opportunities to profit.

Quite a lot of information is available about trading discipline and the psychology of Forex trading. Disciplined trading is essential for success, a fact that is known to most accomplished traders. Forex trading tools will be rendered ineffective in the absence of discipline in your trades and mindset. The ability to focus and keep to your trading methods amidst adversity is the prime benefit of discipline.

In the long run, when you stay with a competent trading system it will help you profit and accumulate wealth in the Forex market. When rationality prevails over strong trading emotions , it will allow you to trade more effectively.

Keep these 10 Critical steps in mind as you learn to trade forex. These rules are very important for anyone that intends to day trade forex for a living, and indeed for anyone planning to learn Forex trading even if it is only part time. Get all your ducks in a row before you submit your first trade, and increase your odds of success by a hundred fold!

Ok, time to get started. It costs nothing to signup for a forex trading account and begin trading with a demo account. This is the only way to really learn to trade forex, just get in there and try some things out. Day trade forex with play money to get a feel for how it works. If you do not do your due diligence, you might end up wasting your money on a guy who does not know anything about forex trading. A simple Google search for forex courses in Nairobi returns about , results!

Before you sign up for classes with any person out there, do your due diligence. Ask them to give a list of contacts for persons they have successfully trained. A lot of the scammer forex classes in Nairobi will promise that you will make incredible amounts of money after you sign up for their training.

The more decent trainings will never promise anything but solid information on forex trading. Since forex trading is relatively new in Kenya, the guys who offer forex classes in Nairobi tend to charge an arm and a leg for their expertise. One of the forex experts, who also happens to be my close friend, charges a good K for forex training.

Other forex traders in Nairobi charge anywhere between 10 and 15K. This price is however negotiable. To keep the training fee even lower, consider using online manuals and forex blogs to learn the theory and the basics, and only hire a forex coach to show you the practical bits of trading.

By buying up currency or alternatively upping the supply of their currency — in similar fashion to oil producers — governments can raise or lower the price of their currency. This kind of intervention tends to be a short-lived quick fix approach due to the sheer scale of the Forex market. Highly volatile shifts in values simply cannot be sustained in the long term. Online forex trading is done through what is called a margin account.

A margin account is set up through forex brokers who will place your trade on the interbank network and oversees your account. A margin account is like a bond account that works similar to a savings account. These margin accounts ensure that you get paid when you exit a profitable trade and ensure the banks and other traders that you can pay when you lose on a trade.

Brokers also monitor your account equity and insure that you do not risk more on a trade than you have in an account. There are 3 different types of forex accounts offered by forex brokers when setting up your forex trading account. Each account has different funding requirements and leverage. Each also produces different risk reward ratios. Fore more information on the types of accounts, please click on the links above.

Currency trading is done buy purchasing lots through your margin account. Trading 1 lot is sort of like trading 1 share of stock in a company other than in forex a lot has a fixed amount of money that it is worth at the moment you buy or sell it. A lot is a pre determined amount of currency that a bank allows you to trade based on your margin account. For example, if you are trading 1 lot on a standard account, you are typically trading , US dollars worth of currency with a leverage of If you are trading on a mini forex account, US dollars allows you to control 10, US Dollars worth of a currency at leverage.

This leverage is part of the reason that trading currency is so appealing to many forex traders. A pip or Point Interest Spread, is the term used in the currency market to represent the smallest incremental move an exchange rate can make. Depending on context, normally one basis point 0. Why is this important? Pips are how forex traders get paid! If you are trading , US dollars worth of a currency, and the value of that currency goes up by 1 pip or , x 1.

There are 3 types of charts most commonly used by forex traders when trading forex. The bar line chart, the bar chart and the candlestick chart. Out of the three, we will concentrate on candlestick charts as they are the most common. Japanese candlestick charts have been used in various forms for analysis since before the Seventeenth Century. Today this form of displaying technical information is a very popular tool among traders. This is because Japanese candlesticks make it easy to identify price action.

Candlestick charts are also incredibly easy on the eyes. Japanese candlestick charts display price movement versus time in a very simple and easy to read form. Each candle represents a specific amount of time.

In other words, if you were looking at a 30 minute chart, each candle on the chart would represent what price did during each 30 minutes. There are 4 major parts of the candlestick.

The Opening The opening, or price opening, part of a japanese candle stick indicates the exact price of the currency pair at the exact start of the time frame that your Japanese candlestick chart is set up to display. For example, if your chart were set up to show 30 minute candles, the opening of a candlestick at am would show the price of that currency pair at that exact moment.

The Body The body of a candle stick then is dictated by the direction the price moves in after it opens. If the price goes up, a body will be created to indicate the difference between current price and the price at opening. The Wick A wick is created when a price opens and moves in one direction, only to reverse and move in the opposite direction. For example if the price opened at 10, moved up to 15, and closed out at 5, a wick would represent the path the price took before creating a bearish body and closing a bear candle.

The Close At the end of the specified time for a candlestick, a second horizontal line appears to indicate the last price that currency reached before starting a new candle. Japanese Candlestick Formations A Japanese candlestick chart is then made up of several of these price vrs time candlesticks that together created different patterns and signals.

All of this creates a sort of story board that tell the trader what the market has been doing. As the market can only do 1 of 3 things, move up, move down, or move sideways, there are many different looking candlsticks that fit into those 3 catagories. We will focus on a few of the most usefull formations. There are two different strategies to trading the forex markets that are very different from each other.

Technical analysis and fundamental analysis. Although most of the strategies taught by Kenya Forex Firm are considered technical analysis, there is a lot of merit in understanding both strategies. Technical analysis traders take trades based on the information provided to them by the charts. They consider trends, past performance, candlestick formations, resistance and support and other mathematical equations and build a case for why to or why not to make a trade.

Although technical traders do take into consideration when a fundamental economic announcement might be released in order to time market entry, for the most part they assume that the state of a countries economy, political stability, and currency demand is already reflected in the charts. On the other hand, fundamental traders consider economic data, political stability, supply and demand, and current events and base their entry and exit strategies off of that information.

You need to research to identify the right school. Some of the factors you need to consider when choosing the right forex training school include cost, location, and flexibility. Flexibility is key because it allows you to take online cases in case there is a challenge in attending the physical lessons.

Brokers are required by law in the country to offer training to the new forex traders. This is an opportunity that you can use to learn forex trading in Kenya. With an average of 4 brokers having the license to operate in the country, there is a choice for customers in form of learning and trading.

These include;. The key advantage of taking broker lessons is that they offer these lessons for free. Hence, it is a suitable method if you have resource challenges to pay for the formal lessons. You should ensure to do prior market research to ensure you settle on a broker offering training services. Even with all these learning approaches, experience is still the best teacher. Much of the learning will be done when undertaking to trade in the market.

This starts with trading on a demo account and then upgrading to a live market. The learning curve for forex trading is steep and could take years before you can gain some safe amount of knowledge. The more you invest in learning, the easier it becomes to succeed in the market. Hence, focus to learn as much as you can before committing your capital.

Your email address will not be published. Save my name, email, and website in this browser for the next time I comment. Skip to content. Forex Trading. By Robert Kariuki May 4, Become a millionaire trading forex , Best forex schools in Kenya , Best forex trading broker in Kenya , Forex trading , Forex trading brokers in Kenya , Forex trading in Kenya for beginners , Forextrading in Kenya , How long does it take to learn forex trading , How to start forex trading in Kenya , Is forex trading in Kenya profitable , Is forex trading legal in Kenya , is forex trading profitable in Kenya , Make money trading forex in Kenya , Requirements to start forex trading in Kenya , What is forex trading , Why forex traders fail.

Why Most Forex Traders fail in Kenya. By Robert Kariuki. Related Post. Sep 12, Robert Kariuki. Apr 29, developer.

You can trade forex via any licensed FX broker. In Kenya, there are 6 non-dealing forex brokers licensed by the CMA. We have researched trustworthy and independent reviews of Forex brokers in Kenya.

Compare the brokers based on our reviews, fees comparison, regulatations to make your decisions. We have also created beginner forex guides to help you get started. Parent company EGM Securities is licensed by CMA.

Regulated with CMA. Regulated with ASIC. In this step-by-step guide we wil explain everything you need to know about Online Foreign Exchange trading in Kenya as a beginner trader. Forex trading is trading in different currency pairs with the aim to earn profit from the difference in the value of the currency pair due to market movements.

KES is a not a strong currency like USD. Hence if we buy USD then we have to pay , KES. Now suppose the value of KES increases in the market. In that case, we have to pay less KES for every USD bought. That would also mean that for every USD you sell, you would receive more KES than you paid. This difference between the KES paid and received is the profit that you earn.

Forex trading is a profitable only if you know how to study the currency pairs and when to invest in which currency pair. Let's say you have 20 US Dollars, but you want Kenyan Shillings instead. Then you can convert your US Dollar into Ksh. via a regulated exchanger or bank. They will convert your Dollar into Kenyan Shilling at the latest exchange rates. In this above example, the exchange or bank will also charge a markup fees, to process your forex transaction.

This fees is generally by offering you a sell rate higher than the buy rate. Let's say buy rate for 1 USD would be Ksh. then the sell rate would be or lower, depending on your bank which is participating in the FX market on your behalf to exchange your currency.

If you are trading forex, then you will come across some terms that you should remember if you want to be an active trader. In the forex market all currencies are traded in pairs, against each other. Pip is the smallest decimal value in a currency's price. It is generally the last decimal in the quote. The movement from 1. This is effective because it leaves the extra money with the investor with which other investment options can be tried or can be kept for personal use.

Leverage is given by CFD brokers. Since forex trades generally take place in standard lots, which is , units of currency, we assume we are buying 1 lot of EUR. Leverage is calculated by dividing the total trade value by the margin required. This would give us a leverage of In case the EUR value appreciates by pips to 1. Hence, we are able to trade and profit more with less capital but high leverage. Most investors look for high leverage offerings but one should understand that high leverage also increases the risks of high losses in case of negative trades.

For CFD instruments other than forex, you should strictly use leverage of no more than Also Read: Our guide on What is Leverage in Forex Trading. The bid price is the maximum price at which a trader or a broker is willing to buy a forex pair.

The ask price is the minimum price at which a trader or broker is willing to sell a forex pair. One thing to note here is, the bid and ask prices operate differently for brokers or market-makers and price takers or regular investors.

Market-makers buy at the bid price and sell at the ask price. Price takers buy at the ask price and sell at the bid price. The concept of the bid and ask prices is similar to the buying and selling prices of groceries from the perspective of a shopkeeper.

As a shopkeeper, the wholesaler's selling price is equal to your buying price. Similarly, when you are selling the same groceries to your customers, your selling price will be equal to your customers' buying prices. Generally, the bid prices are lower than the respective ask prices. This is because the sellers try their best to make a profit off a trade. It is good for you if your broker has a lower spread, which would mean lower fees for a trade.

For trading in the forex market you need to trade via a broker. The broker's Bid price would be quoted as something like 1. The difference between this is the broker's fees called the spread. The lower the spread, the better it is for trader.

This is because it will allow you to retain more profit or a lower loss. as these can make the overall fees higher even if the spread is low. For ex. And there is Broker B, that has 1. The overall fees would likely be lower with broker B, depending on your trading volume. The value of your order will depend on the units of a currency traded. Generally these units are referred to as lots. You will see the option to choose the number of lots that you want to trade on the brokers platform.

Most brokers allow to trade custom number of lots, for example you can trade 5 Mini Lots, or even 5. Brokers like FxPesa, Exness etc. that offer MetaTrader have this option. Capital Markets Authority CMA of Kenya has made online forex trading in Kenya more regulated now.

To trade forex in Kenya via a locally regulated broker, you need to open an account with any of the forex brokers regulated and licensed by CMA. There are six such brokers who are regulated by CMA: EGM Securities, PepperStone Kenya, ForexTime Exinity Group , HotForex, Windsor Markets and Scope Markets. There are also global foreign regulated forex brokers accepting traders from Kenya - that are regulated with foreign regulators like Financial Conduct Authority FCA , Financial Sector Conduct Authority FSCA , Australian Securities and Investments Commission ASIC and the likes.

It is recommended that you choose the only brokers that are licensed by CMA. Only this will ensure that you are trading forex legally. Almost all the brokers provide demo accounts. Demo accounts are like real trading accounts, and your can trade and understand the nuances of trade just like real trading account without risking your real money.

But it is still a good place to learn trading. Most Forex brokers have a Live Account Opening page on their website. Live this example from FxPesa's website.

Generally, the steps involved are the same. You need to fill your 'Account Information' details, your Financial Adequacy information.

Then you need to submit your 2 KYC documents i. For the KYC, it is essential that you submit valid documents as this will prevent any issues during withdrawals. For ID proof you can submit copy of your Passport or any other National ID. For Address proof, you can submit your phone or any other Utility Bill.

ECN Electronic Communications Network brokers is where the investors directly get connected to the other investors in the Forex Markets and the fee is calculated by the volumes traded by the clients that pass through the ECN environment. STP or Straight Through Processing is where the broker passes the trades to liquidity providers for execution and gives access to interbank market structure.

Even though having DMA gives you wider access to markets with higher rewards and risks, but finding true brokers providing DMA is difficult and tricky. You should avoid brokers that are market makers as these brokers take position against you. So any loss that you make with a market maker forex broker is the profit of that broker. All the CMA licensed online forex brokers are 'Non-Dealing' which means they don't operate a dealing desk.

So, they are not market maker brokers. If you are a beginner, you should choose brokers with standard spread accounts only where the broker preferably offers STP accounts like in case of Hotforex. The expert traders can go for ECN type account.

These have low fees but commission is charged as per the trading lots. With Zero Account it is 0. So, if you are a trader trading high volume, it would be right decision to open your trading account with Zero Account for saving on the broker's trading fees.

Many brokers offer a lot of options when it comes to opening accounts with them. All these accounts require a minimum account balance.

This would ensure that a sizeable position could be taken in trading and a good profit could be earned on positive market movements. However, it should be kept in mind that a position would depend on the balance maintained and the leverage offered by the broker.

Though COVID did not impact the health of Kenyans significantly at the time of writing, the economy was hit hard socially and economically. The more you invest in learning, the easier it becomes to succeed in the market. FP Markets. FXCM offers 39 currency pairs, 82 CFDs, copy trading, and spot trading. There are plenty of Forex trading courses and training available in Nairobi offering a trader more than just strategies and markets. Pepperstone is an online forex broker based in Australia, offering a collection of CFDs too.

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