How to Trade Forex successfully in Nigeria

Forex Trading Nigeria

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Posted by on Thursday April 12, 2012 15:16:25:

Nigeria has a growing number of forex traders but only very few achieve what we can call success at doing it. It is one thing to try your luck and another thing to trade forex professionally. If you have been trading forex, one question you should ask yourself is - Am I a trader or gambler?

How does one trade forex successfully in Nigeria? Well, it is simple - Follow the rules. Follow a strategy that works for you.

Here are some tips of how you can trade forex in Nigeria:
- Don't risk more than 1 to 2% of your capital in a single position
- Have a set target
- Try to maintain good capital requirement to avoid margin call.
- Have a strategy
- Use a good risk:reward e.g. 1:2
- Stay informed on forex news and reports. A good site is

Let me give an example:
Assuming you have $1000 as your capital and want to trade the EUR/USD. Then you should risk only about $10 per trade or position. By the time you make 100 trades and lose consecutively, you would have lost your capital although this is unlikely unless you don't study the market direction.

So this means that you will still be able to trade for 100 times even if you are a perpetual loser. Now what makes you successful is that by the time you make a couple of trades, you would have learnt how to follow the market and make even little trades that end up accumulating to big gains.

It doesn't really make sense to open a trade that puts $500 at risk when your capital is $1000. It may only be good to risk $500 if you actually have $50,000 as capital. SO if you have $1000 trading capital on EUR/USD, don't open a position worth $1 per pip but rather about $0.1 per pip when we know that that currency pair ranges about 50 to 100 pips a day.