Thanks to great trading regulation, a strong private economy, and a growing number of online brokers, Nigerian traders can trade pretty much anything they want online.
Yet, the market is still so new that many people don’t even know it exists and many who are aware of the market, aren’t sure of how it works or how to get started.
Therefore, we asked some of the learning trading experts in the world to provide us with an easy-to-use introduction and this is what they had to say.
1. Pick a Market
The first step is to decide which market you want to trade on. Even though you might be trading on several markets down the road, it’s recommended that you start with just one. The reason being that analyzing and trading forex is quite different from stocks and by mastering one, you’ll enhance your chances of succeeding.
Also, the great thing with using online forex and CFD brokers is that they offer a range of different markets and often hundreds of assets, that way you can continue using the same broker even when you switch markets.
2. Find a Broker and Open a Demo Account
With a market in mind, it’s time to find a broker to sign up with. There are certain aspects that a good broker offer and it depends on the assets and platforms they provide. However, the most important thing to keep in mind is to only use reliable brokers that are licensed to offer their services in Nigeria.
Now, you can either do all the research about brokers on your own. There is really nothing wrong with that. Although, in order to save time and be sure that you use a reputable broker, we always suggest you listen to what experts have to say. In this list of the top online brokers in Nigeria, you can find several of the best brokers for you.
We then suggest you open a risk-free demo account where you can trade using virtual money until you feel secure enough to deposit your own funds.
3. Learn the Basics
By now, it’s time to start studying the basics. Without an understanding of how the markets work and what affects the prices of the assets, you won’t be able to trade efficiently. Moreover, you have to learn how to analyze the market and find value.
Most top online brokers offer great educational material that you can use to get a hang of the basics. Then there is an endless plethora of free trading material on the internet that you can use as well.
In case you want to improve your skills even further, we suggest you sign up for a trading course or start paying for demos and video classes.
4. Start Trading with Real Money
As soon as you feel comfortable enough to start trading with real money, it’s time you make your first deposit. Now, you don’t have to be an expert to start using real money and you should deposit funds rather early on. You see, even though a demo account is a great tool to use, trading with real money is a different experience and the involved risk can often help us make better decisions.
5. Bonus Tip
Lastly, you have to remember that it’s not easy to learn how to trade. Therefore, you need to start small and set reasonable goals for yourself. It will require a lot of time and dedication to become efficient and you will, most likely, lose money in the beginning.
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