Want to Venture into Forex Investing in Kenya? Here’s Key Considerations to Make

Looking to diversify your investment portfolios? Looking to gain for multiple opportunities forex has to offer? For investors venturing into the largest decentralized financial market, there are some key considerations they should think about.

Kenyan Enterprise has compiled a list of factors to keep in mind as more forex brokers establish themselves in Kenya

1. Forex Demo account

For forex beginners, it would be wise to utilize demo accounts, especially with unlimited trials. This will assist the individual to harness fundamental and technical analysis of the forex markets without financial losses. One must learn as much as possible about forex before placing your hard-earned cash. The markets severely punish ignorance.

2. Trading platform

There are good forex brokers that have platforms that are not user-friendly, An individual should consider a good forex broker offering a user-friendly platform, especially for beginners.

3. Verified Broker

In Kenya, the Capital Markets Authority(CMA) regulated all forex brokers. It ensures market integrity and investor trust.

Forex brokers regulated by the CMA  are bound to be under the institution’s oversight and must be transparent in their operations. Investors who deal with a verified broker  have their finances protected in case of any disputes

4. Trading strategy

There are different forex strategies and they work out based on the individual’s knowledge and skill in coping with forex markets. Some of these strategies are scalping, day trading, position trading, and swing trading.

The scalping strategy is fast-paced, the traders are mainly focused on rapid trades and comfortable with high volume trading periods. Day trading is only during the day, unlike scalping which is not as fast-paced. Position trading strategy is considered by conservative investors who can focus on the long term and will hold positions for months or years. Swing trading is also for conservative traders who are cautious and will hold positions for days. Traders will take advantage of swing lows and swing highs in forex/

5. Stop-loss orders

In forex, there are wins and losses,  a forex trader needs to manage the risks. By using a stop-loss order, a trader can manage the level of loss he can take in a single trade. Wider stop-loss orders are likely to wipe out the gains made in other trades.

7. Risk to reward ratio

Any business venture requires the individual to assume the risks he would want to incur in exchange for financial returns. As an investor, you should not stake what you are not willing to lose.

8. Technology

There are venture capitalists, individuals who have capitalized on technology to give them an advantage in the world of forex. High-frequency trading has become widely used due to its efficiency, this utilizes powerful computer programs to analyze the markets and execute trades in a fraction of a second.