«

»

May
09

Forex-Everyone is talking about it!

I dont know this guy from Adam but when I asked him to do a write-up on Forex today. He obliged me with this beautiful piece. Please readers, kindly say thank you to Jerome Obada; words can not mention how grateful I am. Enjoy as you venture into the world of Forex – over to you JO:

My thots: Most of the HYIPs in

Nigeria claim that they are into Oil and Forex; if they can make so much money by investing our money in forex, why can’t we do the same? 

Let me first start by saying I’m not a Forex expert; my first journey into the world of foreign currency trading started in March 2007 when a colleague told me he made and lost $10,000.00 from online forex trading. I’ve come a long way since then and now make between 20% and 100% on my investments everyday, 5 days a week. 

FOREX or Foreign Exchange trading is a financial vehicle that can give you a conservative ROI (Return on Investment) of about 20% or more every day 5 days a week but you can also lose all you money in the blink of an eye if you don’t know what you are doing. The truth is, every Forex trader loses money but the trick of the game is to lose little and gain a lot. 

The Forex market is the largest market in the world and has a daily turn over of about $2 Trillion compared to $30 billion in the futures market, this market never sleeps because as one country sleeps, others go to work. The diagram below depicts the different open and close market times for different Time Zones. 

 

Time Zone

New York
GMT

 

From here onwards, I will dwell on my own personal experience in Forex trading. 

Armed with the reality that my friend made $10,000.00 from Forex (I mentally blocked out the fact that he later lost it), I googled “Forex” and “Foreign Exchange trading” in as many different phrases as I could think of and noticed that www.fxcm.com was prominent in all my search results and also have the best customer service culture (my opinion). 

To cut a long story short, I read most of the materials available on the site – webinars, videos, literatures – and also contacted one of their sales person through chat, he called me and we spoke for about 36 mins. I was advised to start with the practice/demo account to get accustomed to trading in the real market before risking my hard earned dough in the mini ($300) or standard ($2000 and above) accounts. 

The practice account allows you to trade with $50,000 demo money in the real market with a leverage of 1:1000 i.e. you can control $100,000 with just $100. This leverage can amplify your profit but also works the other way; you can lose your money if the market moves in the opposite direction to what you bided for. Pls go to www.fxcm.com or www.fxcmtr.com to learn more, I also found the following links very informative; 

www.babypips.com www.realtimeforex.com http://forex.acrobat.com/p75775177/ www.forex.acrobat.com/webinars www.fxcm.com/forex-trading-video.jsp  

I lost $15,000 demo money on my first day; this happened because I rushed in without understanding the fundamentals of forex trading. The loss really affected me but I shrugged it off and decided to educate myself more on tools and tricks that the real traders use; I will advise all forex newbies to read babypips.com before starting and also understand the concept of Fibonacci ratios/retracement, Elliot Waves theory and Buy/Sell signal software. These tools and the 25mins video at fxcm really helped me. 

The time difference between major trading countries can also be used to make quick profits especially when there is an overlap i.e. Tokyo closes by 9.00 GMT while London opens 1hr before that; the GBP/JPY currency pair is normally at its lowest around 7:30 GMT (this is referred to as “morning low”) so you can buy at this time then wait till about 10:30am before you sell. You also make a certain percentage if you keep your open position for more than 24hrs. 

Trend and Range – The fluctuations of currency pair’s can be broadly divided into 2 i.e. “Range” and “Trend”. Ranging currencies stay within a range (more or less) so you can easily predict how low/high they will go; buy @ low and sell @ high. You can also sell @ high then buy @ low. Trending currency pairs e.g. all pairs that include the USD can move 100 to 200 pips in less then 20 seconds but these movements are not easy to predict so you can either make it big or lose it all. This is for high risk takers. The GBP/JPY is my all time favorite ranging pair even though the spread is quite high (about 8 pips) compared to EUR/CHF, GBP/USD that have spreads as low as 2 or 3 pips. 1 pip is the lowest value a currency pair can appreciate or depreciate and it value lies somewhere between $8.3 and $10 in a standard account and $1 or less for mini accounts. 

If USD/JPY = 119.01, 1 pip for this pair will be $0.01, this may look small but the1:1000 leverage allows you to make a sizeable profit because a movement of $0.01 becomes $10 and it’s further amplified by the amount you invest. 

Spread: Spread is the difference between the buy and sell price and it’s the only commission your Forex broker will make from your trading.  

Fully armed with all these Forex knowledge in my pocket, I was able to increase my $35,000 demo equity to $48,000 in 3 weeks by making an average of $1,000 profit a day. I’ve since moved from demo to mini account which I opened with $400 and made $62 on my 1st day. My all time favorite is the GBP/JPY which oscillates within a band – 239.75 Pressure and 236.44 Support – though it may once in a while out shoot these values. 

 

CURRENCY DATE TIME LOW TIME HI

GH
PIPS

 

Trading Stations: Pls go to http://www.fxcm.com/trading-platform.jsp to view the flash video on how to use a trading station. Most trading stations include a feature that allows you to plot the real time graph of any currency pair over any period of time; this helps you to know the history of the pair’s performance and also watch as the price fluctuates in real time. 

You can also read some of my posts at http://www.dipotepede.org/2006/08/28/nospetco and http://www.dipotepede.org/2007/03/22/coup-is-coup for some answers I’ve given to various questions on Forex. 

 

NOTE: Forex prices can be influenced by a lot of factors especially news from the Central Bank of major players like USA, Britain and Japan, I lost $130 in my mini account because I ignored a particular Trading news in my squawk box; the squawk box gives you real time news from different countries and predictions from prominent Forex traders around the globe. 

Happy trading!!!

Listen to this podcast Listen to this podcast

About the author

Dipo Tepede

Dipo is a Project Management Coach and Consultant - he qualifies as a Six Sigma Black Belt (SSBB), Project Management Professional (PMP) and a Masters in Business Administration (MBA). He is the founder of the first Project Management eLearning Center in Nigeria called PMtutor. He aims to please... Welcome to his world and ..... Enjoy!!!

272 comments

3 pings

  1. mrsoke says:

    If you are interested in buying e-bullion, I have $250 worth of e-bullion for sale at
    N140. If interested, you can call me on 07028197636, 01-8716673, 08029879354,
    you can also mail me on mrsoke@yahoo.com.

  2. Iton says:

    Is cool and to say hello.
    Checking in to see if everybody.
    Best site!

  3. shola says:

    pls i want to know how genuine this guys are. Although, i’ve opened real account with liteforex.org and fun it. pls i want to know if i will be able to withdraw back my money.Also i will like u to recommend broker that are reliable and accept e-gold.

  4. Achu Godwin says:

    Hi all,
    i have been into the fx biz for some years now, i cant judge myself if i am an expert in it or just fair. But i can tell you that i am more than both. The reasons are because if i dont know how to trade then i have an alternative way to earn from forex.recently i found a reputable nigerian that can pay me betwwen 15% to 23% monthly on my investment, secondly i am trying to analyse this people using EA (ROBOTS) to trade if they are really making good monies, but i wonder if some one can make up to 10% a day of his capital then why should he be thinking of trying to sell it for peanuts like #5,000 or even less when you can use that to make millions of dollars for your self. If that robot REALLY WORKS then i will buy my dream car soon http://images.google.com/imgres?imgurl=http://robson.m3rlin.org/cars/wp-content/uploads/2007/03/audi_rsq_concept_2004.thumbnail.jpg&imgrefurl=http://robson.m3rlin.org/cars/audi-rsq-concept-car/&h=375&w=500&sz=23&hl=en&start=15&tbnid=1yJhVJoGj–inM:&tbnh=98&tbnw=130&prev=/images%3Fq%3Drsq%26gbv%3D2%26svnum%3D10%26hl%3Den
    thats the one million dollars Audi rsq. Ok back to business, we have heard about forex, stock, futures, ecurrencies, e.t.c most of us have money to invest most of us dont. How about a business that can give you 1-3% and above daily that is genuine, infact the companies are publicly listed companies in their respective countries. I really mean clean and honest earnings i am willing to disclose this business here because it requires huge capital outlay ranging from between $2000 to $10,000. Note in this business of mine you will make money calculate 2% by 300 days in a year, you are surely going to make above 300% profit. Just call me if you want to be my partner in this sport business i am giving out free info. My 3 years+ presence online is no joke, if you are really serious then call me now for the free info 08039286937. Have a nice day.

  5. ehis says:

    comprehensive forex training. u will know all that u need to know about forex and end up being a professional.it is a one on one training programme and will last 4 one month.if u are interested u can call 08037597085

  6. yetty says:

    For those who can’t……, , we can do the marketing for you based on a condition that the total payoff will be shared in ratio 60:40.
    Give it a try, it is the best deal in town.
    This travel program is working. This is the easiest way to turn $200 US Dollars to almost #2 Million Naira just in 5 months.
    When you purchase your Getaway club Platinum Pass for only $200 or #32,000, you are issued with a password protected to the “travel site.”
    The program is an automated system that work with the standard of 1 * 2
    There are four compensation plans as below:
    1st Bronze Cycle $100
    2nd Silver Cycle $200
    3rd Gold Cycle $2,500
    4th Platinum $15,000
    Come and let’s show you how home based entrepreneurs are making money through the power of the internet.

    IT IS REAL
    YOU CAN ALSO BE A MILLIONAIRE

  7. Asterix says:

    @Achu Godwin,

    The number you gave in post #256 appears to be invalid. What other number can you be reached on?

  8. afam says:

    @ all

    gooday to you all;

    this is another chance for you to take part in the initial public offering from ASSET AND RESOURCE INVESTMENT COMPANY(OWNERS OF DISCOVERY FUND) OFFERING FOR SUBSCRIPTION,
    50,000,000 UNITS AT N20 PER UNITS AND THE MINIMUM YOU CAN BUY IS 2,500 UNITS (N50,000)

    GET INVOLVED NOW .
    ENQUIRY ; http://www.arm.com.ng/agf
    08038673022 my name is AFAM

  9. Tolu Oke says:

    I have e-bullion for sale at the rate of N140. Anyone who is interested should call me on 07028197636, 01-8716673 or 08029879354. thanks

  10. EMONEY says:

    Simple & Legitimate Ways an Average Nigerian Can Make Money Online.

    *Note: 99.9% of all the Internet “Opportunities” out there are Outright SCAMS.
    Don’t fall for a scam! I will show you the REAL, SAFE & PROFITABLE Internet Opportunities! Plus all the Old & Latest Scams to avoid at all costs.

    It is a SCAM if you’re required to: Recruit people or to Deposit Money!
    If someone starts talking about recruiting people or depositing money, Run with your money – and FAST!

    ” I will show you how you can Make money Online, everyday. Starting within the next 24 hours.
    Using any of the never Revealed Secrets of Online money-making which lots of people do not want you to know!”

    You don’t need to know much about computers or the Internet. Your are not recruiting or inviting anybody and you are not
    depositing any money either.

    Sounds too good to be true? Don’t take my word for it. Here’s what some highly credible Nigerians have to say about this:

    “Is has designed a beautiful MONEY MAKING MACHINE for Nigerians…”.
    — Mr. CHRIS EGBULONU O.
    Consultant, Directhick Management & Consulting.

    “Impressive! Straight to the point!…Ikechukwu Iroegbu has done us all a great service…giving us an
    instruction manual that anyone can follow….e-Money might as well stand for easy money!”

    – Engr. GEORGE AKOMAS Jnr.
    http://www.GeorgeAkomasjr.com

    I am going to show you SAFE, SIMPLE & EASY proven methods which average people like You are Using to earn as much as N150,000 weekly.

    If you can check you email yourself you can do it!

    2 hours of browsing a week could be enough for you.

    I will Show you how; STEP-BY-STEP.

    This package costs just N8,000, yes that’s the price considering the fact that you’re buying a ‘license to print money’.
    But for a limited time only, we are giving it all away at an introductory price of N3,500 if you place your order before
    Saturday March 29th, 2008.

    Order Your Package Now!

    How to Order Your eMoney Package:

    Pay to any branch of Guaranty Trust Bank nationwide.

    Account Name: shittu R.A

    Account Number:2382268591590

    “Receive your Package within 24 hours!”

    After making your payment, send a confirmation email to ope_mine@yahoo.com with the Subject:
    ‘Payment Made’. Please include the following details in your email:

    Name

    Phone number

    Address and

    Payment slip number.

    After sending your notification email to us, your payment will be confirmed.
    And you will receive your package within the same 24 hours.

  11. alexbookhyip says:

    I have carried out large work and collected the most trustworthy
    sites about online investment in the Internet

    I choose only update and developing ones and collected them in the same place.
    They are accessible for everybody.
    I offer you to acquaint with them ( online investing bookmak http://www.ramnathinfotech.com/bookmarks.php/boksir124 )
    If somebody can supplement my list please publish here your research or bookmark

    PS I am sorry if my message out of forum topic or it`s not interesting to community.

  12. alexbookmin says:

    I have carried out huge research and collected the most interesting
    sites about online business in the Internet

    I choose only update and developing ones and collected them in the same place.
    They are accessible for everybody.
    I offer you to acquaint with them ( online investing bookmak http://www.whattup.com/bookmarks.php/boksir124 )
    If somebody can supplement my list please publish here your research or bookmark

    PS I am sorry if my message out of forum topic or it`s not interesting to community.

  13. brand says:

    check out http://www.bridge10.blogspot.com for new opportunity

  14. brand says:

    check out http://www.bridge10.blogspot.com for new opportunity

  15. Muyiwa says:

    Hello Jerome,

    I have done enough training on forex traiding and I am making an average of 10,000 USD per day on my demo account. The problem I have now is getting to open a live account as all the online forex trading companies do not want to have anything to do with Nigerian clients, i understand why , so I ask if there is any out there that is still unbiased. I need to go live as soon as possible. Thank you.

  16. jim says:

    forex is very hard to do but if you do it right you can make alot of money. You have to use good tools and software.

    forex trading forum

  17. jen says:

    If found this site very helpful in furthering my trading knowledge. I place their link below, let me know what you guys think or if anyone has other suggestions.

    Forex ReviewsThe Forex (currency exchange) market is full of brokerages and trader tools. Learn which companies are the most reputable with Forex Focus Daily’s Forex reviews.

  18. Forex trading beginner says:

    Forex is not for everyone. Traders has to do lots of research and read lots of books from expert traders……. Lot to learn..

  19. John says:

    Forex is Real but not meant for everyone.
    It takes adequate knowledge,patience and I can’t give up attitude to make a success out of it.

  20. Mr mike says:

    Dear Reader,

    Are you a good forex trader? To what extent can you grade yourself? How many years have you being trading? How much can you account for in a month? who is your mentor and how profitable are you now? How many account have you crash. Are you discourage already because you have crash a lot of account and you are just playing with demo. Although, i agree with you that no forex trader can do without demo as a play chat.

    However, i have good news for you. Did you know that there are some robort that can rake in money for you while you are sleeping. Robot like fapturbo, faps, megadroid. You may think you don,t need them but the point is are you a guru. Did you know that one of the reason why you crash account is because of your wrong analysis. Now all this robot i have trade them and they are raking in money for me.

    For more information e-mail me back. mikejames1235@yahoo.com

    Mr James
    07059333913

  21. Forex360 says:

    Alternative forex approach. Visit us today to discover the power of forex. We work for serious investors who want serious ROI.
    Trading History available.

  22. Michael @ forex mentor pro says:

    Forex and the way it is marketed on the net is a sure way to lose your shirt. It is not a get rich quick scheme but is a quick trip to the poor house, if you don’t get yourself educated, which doesn’t happen in 5 minutes.

    I have been trading on and off for years now and I found from all the courses I had done and thousands of dollars later that forex is not a push over.

    What changed it for me was not getting more and more education, but getting a mentor, someone who was a professional trader for a living and capable of teaching.

    So if you want to be a successful trader and it is not working for you, learn from a pro who is prepared to mentor you, it will turn your trading around, it did for me.

  1. Adeolu Schools Us on Robert Kiyosaki « beninmwangi.com says:

    [...] penny (kobo), one is done ahead of spending, called budgeting, and the other after spending, called accounting. Budgeting is planning, this is crucial to financial success. The pain of accounting is not [...]

  2. Dog Contact Tables For Myspace says:

    Dog Contact Tables For Myspace…

    I don’t agree with you in 100%, but you covered some good points regarding this topic…

  3. Cuban Currency says:

    Cuban Currency…

    A office of the Warsaw Stock Exchange will open in Kiev in June. The chairperson of the Warsaw Stock Exchange Ludwik Sobolewski believes that in this way it will be easier to encourage Ukrainian companies to float on the Warsaw Stock Exchange. Not only…

Leave a Reply

Your email address will not be published.

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>