Trading has taken South Africa by storm over the past few years. Is it the allure of quick riches that’s drawing the masses? I don’t know, but what I can tell you is that a number of individuals have managed to elevate their standards of living thanks to forex and binary trading. Instagram and Facebook is replete with pictures and videos of young traders, many of them below the age of 30, flaunting their wealth thanks to trading. Whether it’s a flashy new ride, or a mansion somewhere in the leafy suburbs of Johannesburg, these traders make others aspire to be like them. If you are interested in hopefully becoming like them some day, please read on. Hopefully this article will make a little sense for those who are still complete beginners to forex trading in South Africa.
What you need to understand before getting too excited is that trading isn’t a get-rich-quick scheme. Get that out of your head. You may call it a get-rich-slow scheme. If you want overnight riches, you are free to try your hand at the national lottery. If you are indeed lucky, then perhaps you will emerge as the winner of the next jackpot.
If you are a complete novice to trading, you may be a little confused when you look at the charts. All you see are vertical bars or lines on a chart, going up and down. What are you supposed to do next ? This is where the beginning of your training commences.
With forex and binary trading all you need to do is basically guess where the asset price will end up after a specified time. It can be anything from a minute, to the end of the month. Let’s take an easy example. You are trading the USD/ZAR (United States dollar to the Rand). The current price shows 162.9. Will it be more than that figure, or less, in say, 5 minutes ? Easy, right ? Not really. You cannot just look at it and determine what the outcome will be. However, don’t panic, as there is something that can assist you with this.
Introducing indicators ! In trading it is vital that one uses indicators. These become your guides, as they give you an indication of the possible price movement. There are a plethora of these around, and they measure everything from the momentum to the trend direction, to whether an asset is volatile or not. Some popular indicators include the Stochastic Oscillator, MACD, Fractals, and CCI, for example.
In order to make significant profits in anything, one must invest a sizeable amount of money. Trading is no different. If you want to profit R5000 in a trade, it doesn’t make any sense to have a R500 balance, for instance. The more you invest, the better.
Opening a forex trading account in South Africa is very simple. You can start your trading adventure in under 10 minutes. What makes it even more exciting (and easy for you) is that you can open a ZAR trading account. Who knows ? Maybe in a few months you will be South Africa’s next trading millionaire !