Forex trading school kenya

For the KYC, it is essential that you submit valid documents as this will prevent any issues during withdrawals. 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.

How much do you need to Start trading Forex 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. Trading positions also depend on the lot size that one opts for. One can trade in Standard lots , units , Mini lots 10, units or Micro lots units. Knowing this information is very helpful as this would help in determining the level of risk one can take and what position to take in the trades. The broker offers a leverage of and 0. Generally, the very liquid forex pairs have changes in the range of of pips.

So, one can generate a good return if you invest wisely with low leverage. However, the risk appetite should also be kept in mind. With this method it can generally take upto 24 hours for the broker to credit your trading account. Generally both these methods are instant for funding, and it takes few hours in case of withdrawals. But it takes few days for withdrawals in your bank account. It is really important to understand the risks, so you can take preventive action to minimize them.

In this chapter we will highlight some of the main risks that most traders ignore. Risks of Forex Trading The 4 main risks involved in forex trading are: Forex Market can be highly Volatility Forex deals with exchange rates and currency pairs. Forex market is quite volatile. As per the global financial markets, the fluctuations in exchange rates could be various economic, geopolitical, social, etc.

The currency pair which can give a profit today may incur a loss tomorrow. Therefore, to cover the volatility risk, one has to study the exchange rates and currency movements very carefully. Poor Risk Management and High Leverage In forex trading, the risks of incurring huge losses should be covered using hedging instruments like derivatives. High leverage means trading on the capital which is not owned or is borrowed.

So, if the leverage is high then the losses on that becomes a double burden on the investor to pay off. To safeguard the money invested and to cover oneself from any fraudulent practices, one must always trade with regulated brokers. Unpredictable markets The risk-reward ratio should be calculated before investing as the markets are volatile and an investor should be sure how much money is expected to be gained and what is the maximum loss that can be incurred.

The predictable loss should always be less than the predictable profit. There must be a limit stop loss order in place that protects against loss to the minimum. Here are some tips that Beginner traders should stick to: Always keep track of any Economic news that could affect the currency values.

Forex and CFDs are risky products and should be studied well before starting to trade. Remember, Trading CFDs are risky instruments as they involve a leverage. The loss incurred may be more than the money invested. Hence, these products should be tracked and tested on demo before trading live. The traders in the financial markets lose money, as losing is one of the aspects of trading.

Most traders use Technical analysis in their trading, but it is still important to learn both. Fundamentals affect the outlook of an economny. A bad economy would mean a bad currency, and vice versa. So it is important to undertand the basics of Fundamental trading. The following Economic indicators could impact a currency: Country's Central Bank's Interest rates decision Inflation rates Unemployment data Technical Analysis Technical analysis involves trading based on the charts, reading the patterns, using charting tools, indicators etc.

Traders that use technical analysis read the chart using methods like candlestick patterns, Supply Demand, trendlines, support resistance etc. Below is an example of how a trading chat looks like. A technical trader would analyse different time frames as well during analysis. If you are just starting out, it is really important to spend as much time as you can to learn about the concepts of Forex, CFD trading; it's risks, strategies etc. Once you have learned the basics, start by opening a demo account with a broker of your choice.

Trade using that demo account until you have a good strategy that works, and has been tested over a period of months minimum. Ony once you are fully comfortable, then you can start by investing real money. Start with low capital, and trade mini lots only. Follow all the money management lessons. We have created comprehensive guides to help you get started with online forex trading. Kibet Maureen Graduate I take this opportunity to express my gratitude to God and a well-blended team of Management, experienced Lecturers, Support Staff and the entire U.

E family for giving us diverse range of dynamic academic and life experiences. In life, what counts is not your physical look or stature but God given potential. Thank you U. E for enabling us to unlock our potential. Lilian Cherono B. Sc Microbiology, Graduate The knowledge, skills and the many experiences I gained especially in the field of microbiology have uplifted me to greater heights.

I believe I can speak with authority, stand and defend the nature by explaining the significance of the very tiny organisms on earth. The university is unique it produces quality students in every field, the students and courses they take are always a match made in heaven. Protus Ochopai Nyamu B. Sc Enterpreunership, Graduate University of Eldoret has been a good experience, from my fellow students who through discussions doing assignment on time and personal commitment to studies have taught me that through thick and thin everything is possible.

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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. Broker's Spread 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.

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. Forex Lot Sizes The value of your order will depend on the units of a currency traded. Generally these units are referred to as lots. There are 3 Lot Sizes: Standard Lot - , units Mini Lot - 10, units Micro Lot - 1, units 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. 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. It is recommended that you choose the only brokers that are licensed by CMA. Only this will ensure that you are trading forex legally. 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. 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 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. How much do you need to Start trading Forex 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. Trading positions also depend on the lot size that one opts for. One can trade in Standard lots , units , Mini lots 10, units or Micro lots units. Knowing this information is very helpful as this would help in determining the level of risk one can take and what position to take in the trades.

The broker offers a leverage of and 0. Generally, the very liquid forex pairs have changes in the range of of pips. So, one can generate a good return if you invest wisely with low leverage. However, the risk appetite should also be kept in mind. With this method it can generally take upto 24 hours for the broker to credit your trading account. Generally both these methods are instant for funding, and it takes few hours in case of withdrawals.

But it takes few days for withdrawals in your bank account. It is really important to understand the risks, so you can take preventive action to minimize them. In this chapter we will highlight some of the main risks that most traders ignore. Risks of Forex Trading The 4 main risks involved in forex trading are: Forex Market can be highly Volatility Forex deals with exchange rates and currency pairs. Forex market is quite volatile.

As per the global financial markets, the fluctuations in exchange rates could be various economic, geopolitical, social, etc. The currency pair which can give a profit today may incur a loss tomorrow. Therefore, to cover the volatility risk, one has to study the exchange rates and currency movements very carefully.

Poor Risk Management and High Leverage In forex trading, the risks of incurring huge losses should be covered using hedging instruments like derivatives. High leverage means trading on the capital which is not owned or is borrowed. So, if the leverage is high then the losses on that becomes a double burden on the investor to pay off.

To safeguard the money invested and to cover oneself from any fraudulent practices, one must always trade with regulated brokers. 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. Chapter Basic Forex Trading Strategies Technical vs Fundamental Analysis 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 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. Fundamental Analysis 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.

Instead of spending their time working with and analyzing charts, fundamental traders study economic reports and stay in tune with global news. There are hundreds of economic reports released from many countries on a daily basis. Support and Resistance Understanding support and resistance is critical to becoming a successful forex trader.

One of the great advantages to trading forex is that it tends to react similarly at price highs and lows. Highs are areas in price movement where a currency runs out of steam and a price retracement or reversal is eminent. Lows are the same thing accept in the opposite direction. When the market reaches a certain high and cannot break through it, that price becomes market resistance.

Likewise when the market reaches a low price and can not break through it it becomes price support. The more times the price hits a certain high or low and fails to break through it, the stronger the resistance or support of that price. Often times when price finally breaks through the support or resistance, that past support becomes future resistance and likewise the past resistance becomes future support.

Support and Resitance Foreign currency trading, or forex, is easily one of the best ways to make money in your own time from the comfort of your own home. It is totally legal to trade forex in Kenya. The industry is regulated by the Capital Markets Authority CMA , making sure that retail traders like you are me are safeguarded from unfair trade practices by forex brokers.