#1 Forex Trading Course
What is Forex Trading ( Our #1 Course )
Forex, also known as foreign exchange, FX or currency trading, is a decentralized global market where all the world’s currencies trade. In one of our forex trading courses, you will learn step by step when to buy and sell and much ( with a healthy profit off course )
With more than 15 Years of training beginners to professionals the latest trading techniques – SA Shares accredited Forex Course is by far the most attended in the country.
- New* Finance Available when signing up to the 5-day course – Best Price in South Africa.
What will you learn on your 5-day Professional full-time forex trading course?
- Foreign Exchange Market
- Mechanics of Currencies
- Psychology of Trading
- Banks, hedge funds, Corporations
- Short and intermediate-term trading
- Technical currency analysis – basic to advanced
- Currency Pairs
- Applying Fundamental Analysis to report outcomes
- Retail Sales
- Industrial Production
- Consumer Price Index
- Interest rates
- Professional Trading Strategy
- Risk Management
Make an Enquiry Now about our Forex Courses
Benefits of this Accredited World Class Course
- Understanding the Markets
- Learn your trading instruments: CFD’s and Forex
- Analysis: Technical and Fundamental
- Calculate Risk and Reward
- Place a Trade Chart and Trade on a Trading Platform
While entering the forex market in South Africa is as simple as ABC, deciding if you have the appetite and aptitude for forex trading is another matter altogether.
Despite what some companies many claim, not everyone will be a successful trader. Why not? Because unless you have a magical crystal ball, predicting how currencies will perform, your success will largely depend on how much you know and understand about the world economy.
In this complete beginner’s guide to forex trading in South Africa we unpack the foreign exchange market and provide a step by step guide on how to decide if forex trading is for you.
Step 1: Discover the world of forex trading
There are some fundamental tenets of forex trading that will either pave or inhibit the way for you. Like with anything in life, learning something new can be challenging. The learning curve from beginner to mastery is expected, however it is important to know that making money with forex trading will not result in instant success.
Trading currencies carries a risk and you should never trade with money you are not prepared to lose.
If you read this article and have any doubts about whether you have what it takes, we urge you to dig a little deeper – speak to someone who is successful at trading, take an introductory course, read a book. Whatever you do, make sure you are comfortable that this is something you will succeed at. If you hate economics and don’t have the inclination to read newspapers or follow world news, then trading forex is probably not for you.
Why you need to understand how the world economy works
Forex trading at its very core is about speculating on currency changes. If you do not understand what makes currencies rise or fall, you are dead in the water before you even begin. Yes, you can turn to global macro models and analyst expectations, but wouldn’t it be much more rewarding to succeed using your own knowledge and skill? After all, if you are going to spend time trading forex you may as well enjoy it. It has been proven that people who enjoy the work they do are more likely to be motivated, learn faster, make less mistakes and make better business decisions. Even if you are doing forex trading from home, it translates that enjoying it will result in greater success.
What affects the price of currency?
There are many factors that affect exchange rates from differentials in inflation and interest rates to current account deficits, changes in investor sentiment, public debt, escalating trade conflicts, geo-political developments, political instability and economic performance.
If you are going to trade in forex you need to learn how the economies of various countries work and how they are inter-connected. Understanding the fundamentals of what drives currency values and learning how to forecast currency exchange rates with proven economic models, will enable you to trade with confidence and foresight.
What is forex?
Forex simply means foreign exchange (FX) and is expressed by a country or group of countries’ as a monetary unit, such as the US dollar or the South African Rand. Foreign exchange is just the system of accessing foreign money so that payments can be made using a currency acceptable to that country.
The forex market is the largest market in the world with a daily trading volume average of just over $9 trillion.
Step 2: Find out how forex trading works
Forex trading is about buying and selling currencies with the aim of making a profit. With forex trading you always trade in pairs, that is with two currencies. You buy one and sell the other. The idea is to make a profit when the currency you buy increases in value against the currency you sell. The difference in price is where you either make a profit or a loss.
Money is traded in Forex and that’s why it’s the most liquid financial market with a daily turnover of trillions of dollars. A person changing a few Rands at an airport or purchasing any item in a foreign country, is involved in a foreign exchange transaction, just the same as a company that is changing millions of Rands in order to make an investment in another country.
The most traded currencies
The forex market is made up of a thousand or more currency pairs, for example US dollar and the Rand, the EURO and the Swiss Franc, the Japanese Yen and the British Pound. In reality, there are only eight major currencies that are actively traded on the Forex market and these are:
· USD – the US Dollar is the most widely traded global currency
· GBP – Great British Pound
· Euro – Currency of the Eurozone
· CHF – Swiss Franc
· JPY – Japanese Yen
· AUD – Australian dollar
· CAD – Canadian dollar
· NZD – New Zealand dollar
About the major currencies
The US Dollar is the most widely traded currency and is one of the worlds’ dominant reserve currencies. Therefore, foreign exchange participants are constantly exposed to news coming out about the US Dollar. The US Dollar is the largest national economy in the world, with a GDP of nearly 14 trillion US Dollars.
The UK maintained its own currency, the Great British Pound, even while it was part of the EU. The Great British Pound served as a dominant reserve currency before the US dollar became the international reserve currency. Nonetheless, the GBP is the fourth most traded currency in the forex market.
The Euro is the currency of the European Union (EU) and is the second most traded currency internationally. Altogether, the EU represents the world’s largest economic region with a gross domestic product (GDP), of more than 14 trillion US Dollars, like the US. The economy of Europe is heavily focused on services, although manufacturing represents a greater percentage of GDP than it does in the US. As a currency union the euro is very dependent on political factors related to the EU and its fiscal and monetary policy structures.
The Swiss Franc is the currency of Switzerland. Our currency ranking show that the most popular Switzerland Franc exchange rate is the CHF to EUR rate. The Swiss Franc has a reputation for being a haven or hard currency; it is often purchased during financial uncertainty due to its reliability and stability. Regularly used as a global reserve currency, the Swiss Franc is the sixth most traded currency in the world.
As one of the largest global economies, Japan is a significant exporter throughout the world. Because of Japan’s large amount of trade with US, Asia, Europe and other countries, multinational corporations have a regular need to convert local currency into Japanese Yen and vice versa. As a large industrial exporter, the Japanese is favoured by a weaker yen which makes Japanese products more cost effective in export markets.
Although Australia is a very isolated country with a small population, it was ranked the 13th largest economy by nominal gross domestic products in 2011, making Australia the fastest growing developed economy in the world. Australia is a very large exporter due to its rich deposits of natural resources in gold, iron, coal and aluminum, as well as being a large producer of agricultural commodities.
As of 2011, the Canadian dollar is the seventh most traded currency in the world and several central and commercial banks keep the Canadian dollar as a reserve currency. The US is a very important trading partner for Canada, with 84.2% of Canada’s exports going to the U.S. Canada also has large quantities of natural gas, timber and oil, making the Canadian dollar very sensitive to commodity prices.
The New Zealand dollar ranks the tenth most traded currency in the world, with the value of the currency highly correlated to commodity prices due to the country’s many natural resources and large agricultural sector. The economy is dependent on international trade, mainly with Australia, EU, U.S and Asia.
How do you trade in currency pairs?
On the forex currency exchange, there are three kinds of pairs: major currencies; minor or crosses and exotic pairs.
Major currency pairs
Major currency pairs all have the USD on one side
With major currencies, when paired they all contain the US dollar and they are the most frequently traded ones.
Minor currency pairs
Minor currency pairs or crosses as they are known are pairs that do not have the dollar on one side. A cross will always have the same currency in each pairing like this…
You get a variety of crosses such as the Yen above, the GBP Pound and the Euro.
Exotic currency pairs
Exotic pairs are also traded in and they have one major currency paired with an emerging currency such as USD/ZAR or Euro/Turkish Lira. These pairs aren’t traded as often as the Major or Minor pairs.
Step 3: Go on an introductory Forex course to get you started
Investing in courses will speed up your learning curve significantly and some companies offer free introductory sessions for you to get a feel for the company and course.
Forex trading courses will give you a good understanding of how to trade using the best strategies for success. There are some excellent courses offered in South Africa, ranging in duration from 5 days to 3 months, they are competitively priced and well worth the investment.
When selecting a forex course, you need to consider a few factors:
· If you are anything like most South Africans, your time is limited. Look for a course given through an online training platform which you can access from wherever you are via your laptop, tablet or even your phone.
· Research the company providing the courses and ask who developed them? Courses developed by professional forex traders with a record of success is key.
· Look for a company that can give you personal support in your own time zone, especially as you are starting out, you will need all the help you can get.
· It is important that the course has been accredited with BANKSETA, the statutory body of the banking and alternative banking sector. This will ensure that you are receiving the highest standard of education in this field.
Get to know the lingo through your course
There is this weird trading lingo in the world of Forex trading such as pip, quote currency, bid price, ask price, spread, lots, leverage, long, short and so on. It is very important that you understand the lingo because all forex trading platforms use the same language. Get to know what a base currency or quote currency is, the bid price and ask price; the spread;
Step 4. Find a reputable forex trading broker
If the training company has a trading platform you will not have to choose another company: just move on to step 5.
Here are some things to consider when choosing a forex trader:
· Choose a South African company or at the very least a company from a regulated country. Our financial environment is highly regulated with strict standards to ensure your money is secure and brokers operate professionally. Don’t just sign up on any platform because it is easy.
· Make sure the broker has a track record and research what other customers say about them on reviews.
· Check their commission structures for total transparency.
· If you are a beginner make sure that there are a few ways to get customer service in your time zone – telephone, email, What’s App. There is nothing worse than needing help and you must wait days to get an answer.
· Look for a company with an advanced online platform giving you control of your account on a device of your choice – laptop, mobile, tablet
· Use a broker who is accredited and has an advanced trading platform to practice on. You can make all the mistakes you want with forex trading on a demo account first, without risking any of your actual money.
Step 5: Open an Account
The process of opening an account on your broker’s platform should take minutes to setup and is usually free to create. Thereafter you will need to add funds to your account, and then start trading.
It is simple to start trading forex and it is cheap to get in the market. You can choose from three types of lots from standard, mini to micro. A lot is basically the number of currency units you can buy or sell. A standard lot has always been 100 000 units of currency. However, now you get mini, micro and nano lot sizes so you can basically start with smaller lots where price movements are smaller with much less volatility. For example, you can trade with as little as US$100 compared to US $1000 or US$10 000 with standard lots.
In conclusion, there are fundamentals of forex trading that you need to learn before diving in, but do not let that put you off. If you find a good course provided by experienced and professional coaches that you can interact with daily, it will be no time before you are trading like a Pro.