10 Tips for Beginner Forex Traders in Kenya

Pulselive Kenya Pic 10 Tips for Beginner Traders Kenya

As a beginner trader, you can easily get lost or feel overwhelmed by the wealth of information at your disposal. The best thing that you can do as a beginner trader, is start at one point and work through everything systematically.

Becoming a more seasoned trader requires time, patience, and dedication. There is a substantial amount of information on how to get started including guidelines, tutorials, videos, webinars, and more.

Beginner traders in Kenya can easily start trading by following the following ten tips.

1) Learn the basics first

Beginners may want to jump into starting to trade in the markets with a live account without any prior trading knowledge, information, skills, or experience. Kenyan traders who are just starting out need to ensure that they build a solid foundation first.

This will help Kenyan traders obtain a solid understanding of forex before they can start learning a trading strategy.

2) Learn one trading strategy and master it first before moving on

This is one of the largest mistakes that beginners make, and Kenyan traders who are starting in trading can avoid this easily. Do not change trading methods too often. When you have selected a trading strategy that you would like to use, learn it, and master it before you explore other strategies.

Professional traders often only have one or two strategies that they use. Multiple strategies do not guarantee success, they might lead to great losses instead.

3) Choose the right broker

Kenyan traders who are beginners must ensure that they choose the right broker who can cater for their trading needs and objectives. Traders must ensure that they only make use of well-regulated and reputable brokers, and that the regulation is from respected and reputable authorities.

4) Make sure you have a reliable internet connection

In a rapidly changing market, execution speed is imperative. Thus, Kenyan traders must ensure that their internet connection is fast enough so that trades are executed at the best price possible.

5) Do not get overwhelmed

It is very easy to feel overwhelmed with information and trading strategies as a beginner. The best way for beginner Kenyan traders to avoid this, is by limiting the flow of information. Decide on one educational source to teach you forex trading and focus on one thing at a time before moving on.

6) Do not panic when a trade moves against you

This is a very important tip as most traders, especially beginners, panic or over-react when they see that a trade is moving against them. This problem is apparent especially in live trading and Kenyan traders must realize that it is normal.

Ensure that you set your stop-loss in a logical and safe place and try not to micro-manage trades.

7) Have realistic profit expectations

Forex trading is not a get-rich-quick scheme that will make you a millionaire overnight. This is a misconception that results in traders losing substantial amounts of money. It takes time, patience, and dedication to grow into a position where profits can be made.

Kenyan traders need to learn from their mistakes and take note of the strategies and market conditions when they achieve success. This can be done by keeping a trading journal where all trading activity can be written down for future reference and analysis.

8) Manage how much you trade effectively

Do not put more capital on a trade than you can afford to lose. Beginner traders lose substantial amounts of capital in thinking that opening large positions will guarantee them large, immediate profits.

Kenyan traders must ensure that they understand their risk/reward ratios and place trades accordingly.

9) Know where to place stop-loss

It takes some traders a substantial amount of time, and capital, to figure out where to place their stop-loss. Kenyan traders need to ensure that they place it at a safe distance, away from the entry price.

By placing them too close, you will be stopped-out for a loss before the market has really had a chance to move in your favour.

10) Always make use of risk management tools

Kenyan traders must ensure that they do not expose their capital to undue risk. Make use of the risk management tools offered by brokers.

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