NIGERIA: MYTHS ABOUT ONLINE FOREX TRADING

A lot of wrong impressions have been created about online forex trading in Nigeria by some overzealous promoters of online forex trading. These promoters make some outrageous claims about the reward of trading in forex online. A comparative analysis of promotions about online forex trading in Nigerian dailies shows that they claim that one can make between $100 and $600 daily from online forex trading. This is obviously more than the monthly take home pay of a lot of Nigerians.




It is easy to see why a lot of Nigerians are ready to do what ever is necessary to improve their livelihood. A number of unsuspecting Nigerians have lost their money in the online forex trading gold rush. Most often the loss is not because the online forex trading opportunity is false, but as a result of the outcome not meeting the often hyped expectations.

These promotions have also painted online forex trading in bad light. Some Nigerians now see it as a get rich quick scheme. Others see it as an extension of the dreaded yahoo yahoo business. The fact is that forex trading is a real investment opportunity just like the stocks and commodities markets. Only the intelligent survive in these markets. To survive in the online forex market you need to be intelligent, persistent, and patient.

A successful online trader should also be aware of international politics and how it affects currency value. If all you watch is home movies don’t even think about forex trading. Online forex trading is for the well informed. Forex trading is neither for the poor nor the faint hearted.

Below are some myths currently flying around in Nigeria about online forex trading. In each case an attempt is made to counter such myths and to paint the true picture about the online forex opportunity.

YOU CAN MAKE UPTO $500 PER DAY IN ONLINE FOREX TRADING

This claim is bound to attract a lot of attention, especially in a country like Nigeria where poverty is king. The sponsors of these forex trading seminars know this that is why it is usually the headline. No doubt about it one can make $500 in a day from online forex trading, just like in the stock market or even in selling mobile phones.






What is however false, is that one can make this amount day after day all year round. Also any investor that knows his onions should be able to ask one simple question. How much do I need to invest in other to make $500 in a day? Investments are evaluated on the basis of the percentage return on investment. For example does it mean that no matter the amount of money I invest (even $250) I will still be able to make $500. If you invest $250 today and make $500 the next day you would have made a 100% return on your investment. If you do this consistently every day for a month (assuming 26 working days) you would have made $13,000 (1.6 million naira) from your initial $250 investment. This adds up to a 5100% return on investment. Staggering I hear you say.

These online forex trading promoters mix up information. Yes you can make $500 in a day from forex trading but you will have to invest a substantial amount of money.

One can make between 50% to up to 800% return on investment in a year from online forex trading. Your return on investment in the forex market depends on your guts, discipline, dedication (by always being up to date through reading) and foresight.

ONLINE FOREX TRADING IS A POVERTY ALLEVIATION SCHEME

Online forex trading is not for the poor. To really make money on the short term in the forex market you need to have some real money to throw around. Having a reasonable amount of money gives leverage. For example you can open an account with a minimum of a $100 on some online forex trading platforms, but what happens if the market goes against you and your account falls below the minimum to say $95. You stand a chance of loosing some or even all of your money.

Having enough money helps manage your risks. You can sit and wait until the right time to sell. You simply set your target and wait. It is recommended that an individual should not even think about online forex trading except he has about 250,000 naira to set aside full time for trading on forex online. In addition it is recommended by some online forex trading experts that you should not trade with more than 10% of your forex account.

For example if you want to bid 15,000 naira each on 2 different currency pairs, that gives a total of 30,000 naira. It is recommended that you have at least 300,000 naira. So as you can see you need a deep pocket to really break into online forex trading. Do not use your last card to attend a seminar hoping there is light at the end of the tunnel. Save money and study and one day you might be able to play in the online forex trading market.

ONLINE FOREX TRADING IS FOR EVERYBODY

Online forex trading is not for the poor neither is it for the faint hearted. It is important at this point to define who a poor man is so that you do not get me wrong. My definition of a poor man is a man with a savings of less than 400,000 naira. If you can also sell your assets worth more than 400,000 naira without considerably affecting your life style then you are not poor.

To make it in online forex trading market you must be disciplined, result oriented, self motivated, intelligent, persistent and patient. You must have a strong belief in your self and on your platform. You also need lots of guts and a reasonable amount of money.

ONLINE FOREX TRADING IS RISK FREE

Online forex trading is very rewarding. In fact it is one of the most rewarding investment opportunities in this planet. As a result online forex trading is very risky. It is one of the most risky ventures online.

Online forex trading like any other investment opportunity comes with its risks. It even comes with a higher amount of risk. So do not be deceived.

YOU CAN LEARN ALL YOU NEED TO KNOW ABOUT ONLINE FOREX TRADING IN A FEW DAYS SEMINAR

You cannot have a full grasp of online forex trading by simply attending a one to three day seminar. In fact you have no business attending one of those online forex trading seminars until you have exhausted all the information on the internet. The only good reason to attend an online forex trading seminar is the network that you build. You must study hard, open a demo account and test your understanding before even investing a dime.





ONLINE FOREX TRADING IS A FRAUD

It is equally wrong to claim that the online forex trading opportunity is a fraud. This investment opportunity is real all you have to do is to do a detailed study of the online forex trading opportunity. Open a demo account and try to understand the platform before investing real cash. Good luck.

These are some of the myths about online forex trading, I will add more in the future. You can also include yours via the comment page.