Forex Trading in South Africa: 6 Crucial Things You Should Know

Mihai Cristea 19/04/2021 | 14:06

The surge in popularity and curiosity around forex trading in recent years has been nothing short of incredible. This once niche sector has exploded into life and gained followers, users and teachers all over the world at a rapid pace.

 

Whether you knew much about forex trading before, you’ve probably seen it promoted or spoken about on social media or other online avenues over the past few years and months. 

As with anything that could provide a high return and give us some extra value in our lives, forex trading requires a large amount of care, attention and understanding in order to get right and actually make money.

Trading involves you being a constant student and trusting in the process. There is a wealth of information out there and before you launch yourself into it, take things slowly and gradually build your understanding of this space. It might seem really new and exciting at first, but you will probably soon realise there is more to it than meets the eye.

Investing and trading money at any level needs your full attention and you need to be aware of the fundamentals before getting started. If you are looking to enter into forex trading in South Africa, there are some crucial things you should know.

This Is Not A Get Rich Quick Scheme

Regardless of how the lifestyle and image is portrayed online around forex trading and the potential upside of the whole thing, you will not suddenly become wealthy overnight. There is not even any guarantee you will become wealthy at all, so don’t trust unknown individuals who might try and sell you the dream because you are new to the game and could come off as vulnerable and an easy target.

Use Trusted Sources Of Information

As with anything in life, there are always good and bad sources of information, It’s tough to admit sometimes but there are people or groups out there who don’t have your best interests at heart and simply want to take what’s yours. Be aware of false prophets and always do some reading around the sources you are thinking of following in order to get your forex information. A reliable source of information around this topic is from SA shares website. You probably have a fairly good understanding already about using the internet and giving yourself the best chance of not being taken advantage of. Use the same experience and intuition you’ve learned over the years with your forex learning and safeguard yourself against bad people or misinformation.

Take Your Time

There’s absolutely no rush to throw yourself into trading, regardless of any enticement to get going fast with the threat of missing out on opportunities if you don’t begin straightaway. Some of the best things in life are built from the ground up and require a real investment of time over longer periods. The feeling of delayed gratification will all be worth it if you become a real student, invest in yourself and understand how trading in South Africa works.

Understand The Basics

Only begin real trading when you feel like you have all the information in each area, from the most basic and simple stuff all the way up the more complex. There are many aspects and layers to forex trading and for beginners it can potentially feel overwhelming. Knowing and understanding the basics will give you the best possible chance of success, as you will then be able to move onto the more difficult aspects of forex trading with a deeper interpretation and increased decision-making skills.

The Rules Might Be Different

It’s worth noting that financial and fiscal rules or regulations differ country to country. Before you invest any money and begin your forex trading journey, have a read around the guidelines and see if you have everything in order and don’t get caught out. If you are looking to make a real good go at this and invest properly, you want to do everything by the book and build a long-term asset or business for yourself. The absolute last thing you want is for you to get negative feedback or a bad reputation when you just start out that could impact your overall plans. Put the time into the research and it will pay dividends in the long run.

Your Capital Is At Risk

There are no guarantees with forex trading and it’s imperative you know that your capital is at risk. This is why it’s so very important to take your time, understand the basics and learn your trade from reputable and reliable sources. Depending on your own personal financial situation, you might build your hopes up with forex trading and believe it can change your fortunes around. However, this may not the case at all and if you are worried, speak with your family and friends before engaging in any trading to get their thoughts and do a bit of a sanity check. Yes we can always earn more money but if you have been saving up to begin forex trading, it’s always good to be somewhat of a realist and understand this will take time, effort and you may well lose some capital to begin with when you are learning the process and building from the ground up.

Forex trading has become somewhat of a phenomenon in recent years and you might want to join the train as it leaves the station. The fast-moving industry and growing sector is definitely attractive for the first-time investor, but you need to be aware that there are many factors involved with being a successful forex trader. At first it will take up a lot of time without any real returns, as you learn your trade and build your knowledge on this subject.

So now you’re a bit more equipped with some of the fundamentals related to forex trading in South Africa, you can take the leap and throw yourself into this exciting space. Chances are you might make friends and new colleagues or acquaintances, building relationships and a circle around you of people you can bounce ideas off of and get advice from.

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