Kenya as per last year recorded a 39.1% unemployment rate. This happens to be the highest rate of unemployment in eastern Africa. While this menace of joblessness continues to hit Kenya hard, there are some of the ways some of the people should do to avoid this merciless wave of unemployment. Today I’m going to take you through Forex Trading, and the reason you should consider it as a business
Forex trading literally means Foreign Currency exchange and it is the exchange of one currency over another. In simple terms, It is the buying and selling of currencies. People normally buy the currency for example the USD when it’s cost is low, hoard it and sell it when its price shoots for better profit. When you are involved in trading forex, you are basically exchanging one currency over the other and when you either buy or sell, it always involves two currencies, which we refer to as a currency pair. An example of a currency pair is EUR/USD. It is a highly volatile currency as prices keep going up and down in high frequencies. This is because, in Europe the major currency is the Euro while in the USD is more of a global currency and the bulk of forex traders and institutions are based in Europe.
What you will need to start trading Forex in Kenya
– Training: You need to know the basics of how to trade
– A forex account: Most brokers offer these for free. Try Marketiva
– A trading software
– A domiciliary account or Liberty reserve if you want to do live trading.
How much can one make from Forex Trading?
There is really no limit to the amount of money to be made from forex trading and you can even borrow money from your broker in order to trade larger lots. If you start with something like Ksh10,000/$100, you can still make some profit from it which can be a much as Ksh 1000/ $10 a day if your position is favourable else you could also lose $10 a day. There are a lot of people who make as much as Ksh 10000/ $100 a day just from an initial investment of $1000 and you still get to withdraw your $1000 after closing a profitable trade. So think of price appreciations going as high as 10 – 20 points on a pair like the EUR/USD and with $10,00 trade
Keep in mind to always set an exit stop loss in order to minimize your losses assuming the trade goes bad. Decide how much you are willing to lose before entering a position and this will keep you long in the business.
Written by Mwai Anthony