Nigeria Forex Signal Trading - Scammers Collect Money for Training

Many Nigerians today dream of hitting a fabulous fortune from working on the Internet. While there is absolutely no harm in dreaming big, for some, it is sheer greed. Greed that makes them ready to believe just about anything they read or hear about making money online.

A case in point is forex trading in Nigeria. On my recent trip to Ibadan, I saw several advertising drives, aimed at recruiting forex traders. Huge posters and banners have defaced just about any available public space in some parts of the ancient city. Many of them were advertising “forex training”, while others were advertising e-gold funding/exchange.

Wikipedia describes the term Foreign exchange market (forex trading) thus:

The foreign exchange (currency or forex or FX) market exists wherever one currency is traded for another. It is by far the largest financial market in the world, and includes trading between large banks, central banks, currency speculators, multinational corporations, governments, and other financial markets and institutions. The average daily trade in the global forex markets currently exceeds US$ 2–2.5 trillion [citation needed]. Retail traders (individuals) are a small fraction of this market and may only participate indirectly through brokers or banks.

It is indeed possible to make money from forex trading online but then what the “trainers” do is to massively hype the returns one could make from forex trading. Thus, many Nigerians are attracted because they are informed that they could earn very high returns on their investment capital.

These hypes have resulted in many loosing their money due to mis-information and have ended-up denting the reputation of the forex trading brokers to the extent that Fx Solutions (FxSol) had to stop dealing with Nigerians completely. A mail from FX Sol has been making rounds in online forums recently:

Dear Trader,

Thank you for registering for a practice account. However, FX Solutions, in an effort to help protect the citizens of Nigeria from fraudulent schemes, is no longer accepting live trading account applications from Nigeria.

FX Solutions is taking this action as the company has noticed a rapid increase in instances of fraud that promise unrealistic expectations in foreign exchange trading, while specifically targeting Nigerian citizens. Nigerian citizens should be aware that there are risks associated with all trading, and there is no methodology that can eliminate risk or guarantee performance.

If you are still interested in trading foreign exchange, please consider opening a practice account with another broker.

Regards,
FX Solutions

These “trainers” charge between 15,000 naira and 100,000 naira (between $115 and $781) for training sessions that last for between 1 day and 3 days! Now, how someone can learn the nitty-gritty of a sensitive activity like forex trading in 3 days (talk-less of 1 day), beats my imagination! What such “trainers” only do is to introduce their audience to the basics of forex trading and expect them to figure out the rest themselves. The charitable ones among them give their trainees some printed or CD tutorials, and thus the money spent on training is exhausted.

Do not get me wrong. Forex trading is real and a trillion-dollar industry. It is indeed possible to make money from the foreign exchange market. What Nigerians need to be careful about are scammers who would only give you rudiments and collect your money in the name of training.

Forex Signal Trading Tips

Tip 1. Gamblers go to casino. All unproved, spontaneous actions in Forex trading — are a part of pure gambling.
Any attempt to trade without analysis and studying the market is equal to a game. Game is fun except when you are losing real money...

Tip 2. Never invest money into a real Forex account until you practice on a Forex Demo account!
Allow at least 2 month for demo trading. Consider this: 90% of beginners fail to succeed in the real money market only because of lack of knowledge, practice and discipline. Those remaining 10% of successful traders had been sharpening and shaping their skills on demo accounts for years before entering the real market.
A good demo account to start practicing with could be, for example, FXGame from Oanda.

Tip 3. Go with the trend!
Trend is your friend. Trade with the trend to maximize your chances to succeed. Trading against the trend won't "kill" a trader, but will definitely require more attention, nerves and sharp skills to rich trading goals.

Tip 4. Always take a look at the time frame bigger than the one you've chosen to trade in.
It gives the bigger picture of market price movements and so helps to clearly define the trend. For example, when trading in 15 minute time frame, take a look at 1 hour chart; trading hourly would require obtaining a picture of daily, weekly price movements.

If a trend is hard to spot — choose a bigger time frame. Up and down market patterns are always present. Always make sure you know the dominant trend, unless you are a scalper. Scalpers have no need to spend their time studying big trends, what's happening in the market here and now (during 5-10 minute time frame) should be of only importance to a Forex scalper.

Tip 5. Never risk more than 2-3% of the total trading account.
One important difference between a successful and an unsuccessful trader is that the first is able to survive under unfavorable conditions on the market, while an unsuccessful trader will blow up his account after 5-10 unprofitable trades in the row.

Even with the same trading system 2 traders can get opposite results in the long run. The difference will be again in money management approach. To introduce you to money management, let's get one fact: losing 50% of total account requires making 100% return from the rest of money just to restore the original balance.

Tip 6. Put emotions down. Trade calm.
Don't try to revenge after losing the trade. Don't be greedy by adding lots of positions when winning.
Overreaction blocks clear thinking and as a result will cost you money. Overtrading can shake your money management and dramatically increase trading risks.

Tip 7. Choose the time frame that is right for you.
Choosing wise means that you are comfortable and have time enough to analyze the market, place and close orders etc. Some people can't wait for hours for the price to make a move, they like action and therefore prefer smaller time frames. On the contrary, for others 10-15 minutes is a hustle to be able to make the right decision.

Forex Signal Guide - An Introduction to Forex Signal Trading

Firstly, I'd like to say welcome to this site! This site was designed to provide information for new traders and investors looking to learn about the forex market and what it can offer.

Getting Started: Self-Traders

Your first step should be to educate yourself about the market and trading in general. Read books, take courses, learn strategies, and practice, practice, practice! Most brokers offer demo accounts which will allow you to practice trading without risking real cash.

For some background information on the foreign exchange market, visit the Forex Market Snapshot to learn about the size of the market, the most widely traded currency pairs and where most of the trading takes place. For more detailed information about the terminology used in the forex markets as well as some general and specific forex trading terms visit Forex Basics.

Trading Tips

Rule #1. Learn or develop a profitable trading strategy. Visit the ebooks, courses, books and manual forex systems pages for some ideas.

Rule #2. Don't over-leverage your account! This may be one of the most common reasons besides not having a profitable trading strategy that many new retail traders blow out their accounts. A good rule of thumb is to not leverage your account more than ten times its value. What that means is that you don't open positions worth more than ten times the value of your account. For example, you wouldn't open trades worth more than $10,000 if you only had $1,000 in your account. For a more detailed explanation on leverage, click here.

Choosing a Broker

Surprisingly, this may be one of the most important decisions you make outside of developing or learning a profitable strategy and not over-leveraging your account. You need to find an ethical broker who will not play tricks with you with their pricing and stop you out of trades in order to fatten their wallet! This is typical behaviour of market makers who have an economic incentive for you to lose when they are on the opposite side of your trade. Not all market makers act in this way, so it is a good idea to do your research on all brokers and market makers before placing your money with them. The Forex Broker Ratings section of this site endeavours to help you make the right decision when it comes to choosing a broker.

Managed & Semi-Managed Investments

Some market participants may prefer not to take the self-trading route but instead opt for a managed account, automated trading system or auto-trading provider. Again, don't over-leverage your account when using an automated system or autotrading provider. Ask your managed account provider how much leverage they use when they place their trades so that when a drawdown occurs it will be limited to a reasonable level. It is also a great idea to diversify your investments amongst several providers, systems and/or trading styles. When one is up, the other may be down and vice versa.

With those ideas in mind, this site has been arranged in a way to take you through many aspects of the retail spot forex market so you can learn at your own pace and visit the sections that interest you most.

Site Structure

This site is categorised into five main sections:

• Forex Education - This section provides a background to the forex market to help you learn, discover and become informed about various aspects of the foreign exchange market.
• Forex Products - This section provides more indepth forex education and specialty investment products, including forex books, ebooks, courses, manual systems, automated systems and the like.
• Forex Services - This section provides services for those already in the market looking to assist them in their trading and/or invest in the forex market.
• Forex Brokers - This section covers how to choose a broker, broker listings, comparisons, ratings and reviews.
• Forex Resources - This section provides a wide range of free resources.

Good Luck and Happy Trading!

Steve Moxham
Managing Director
GoForex.net Limited

More info: goforex.net

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