Kenyans have a few benefits when it comes to foreign exchange trading, so if you've been on the fence about making the leap, now is the time to do so.
In particular, since the government has increased its oversight of forex brokers in the country, Kenyans have access to both the major currency markets and a wide range of exotic currency combinations, putting them in a better position to capitalise on a variety of positions and generate substantial profits.
Let's examine some helpful hints and strategies for trading on the foreign exchange market as a Kenyan.
Get the right software and connection
The first thing you should do is have a decent internet connection and a suitable trading equipment for online forex trading in Kenya. At the very least, you need something with download speeds of 10 to 20 Mbps and upload speeds of at least 5 Mbps. The provider you choose must also be dependable.
You can trade using a smartphone, laptop, desktop computer, or tablet. Make sure the tablet or laptop you purchase has a powerful processor and lots of RAM. Aim for 5 to 8 GB of RAM and a processor that is above average for its category.
Sign up with a reliable broker
The next step is to locate a reputable forex broker in Kenya that is licenced and uses MetaTrader 4 or 5. Look for advanced analysis tools, technical indicators, market scanners, and a news board to help you measure market sentiment.
Check that the platform you use provides a lot of educational resources, a friendly community, and easy-to-reach customer service.
Start with the majors
Even if you intend to trade exotic pairs, you should begin with basic pairs because they are easier to monitor and have a high volume. The most important currency pairs to focus on are USD/JPY, EUR/USD, GBP/USD, and USD/CHF. Look for any pairs between the USD and the New Zealand currency, the Australian dollar, or the Canadian dollar.
Once you're comfortable with these pairs, you can move on to a few African currencies. The CFA franc, cedi, dinar, dirham, and Nigerian naira are among the most essential currencies to monitor.
Learn how to conduct technical analysis
After that, you may begin looking at charts and performing technical analysis. While keeping up with the news is important, it will not allow you to regularly make effective trades.
Announcements must be supported by indicators such as the RSI and stochastics. It's also critical that you understand how to read candlestick figures and recognise patterns like Fibonacci.
Final Thoughts
All of these suggestions should give you an advantage as a Kenyan forex investor. Spend as much time as possible learning about crucial indicators of economic growth, start with well-known pairs, and seek as much assistance as possible from the trading community before you begin.
Lastly, it is crucial that you open a trading account with a regulated Forex broker that offers competitive trading conditions.
Also Read: Trading Forex in Kenya: All You Should Know