Developing a Forex Trading Strategy in Kenya
Forex trading in Kenya has seen a rapid growth in recent years. However, it is still a relatively new business, and it is highly recommended that you develop a winning strategy before you invest your real money. One of the best strategies is to have patience and pick the right moments to take advantage of opportunities. In other words, you should know when to enter a trade and when not to, as another opportunity could be around the corner.
Once you have a general strategy, you can begin experimenting with the markets. Try out different indicators and determine when to enter or exit a trade. Once you’re comfortable with the basics, try using a demo account to practice trading. For many traders in Kenya, this is the first step towards learning about forex trading.
The standard account, meanwhile, offers variable spreads and leverage up to 1:30. It also has negative trading balance protection and a variety of tradable assets. The downside to this account is that there’s no local phone number to call to get help. A standard account has more limitations than a mini account and allows traders to trade with small amounts. However, it is still a very safe and secure option to begin your forex trading career in Kenya.
Trading in the foreign currency market in Kenya has become very popular in recent years, and the number of forex platforms in the country is on the rise. It is important to choose a broker who is licensed by the Capital Markets Authority of Kenya (CMA) and is based in Kenya. Forex brokers licensed by the CMA should have significant financial services companies as clients, as opposed to consumer-oriented firms.
If you want to maximize your chances of success in the Forex market, you need to develop a trading strategy that focuses on fundamental factors, such as the state of the economy. Fundamental traders will monitor news and refer to forex calendars to gauge trends. On the other hand, technical traders will use chart patterns and indicators to make predictions on currency movements. These traders will typically use supply and demand, trendlines, and support and resistance. Moreover, they will also look at different time frames to determine the optimal size of their positions.
The capital markets authority of Kenya regulates forex trading in Kenya. This means that traders must open an account with a licensed broker to protect their funds. This ensures that traders receive compensation for losses in the event that the broker goes out of business. The CMA regulates six Forex brokers in Kenya. When you open an account with a CMA-regulated broker, you can expect to be eligible for compensation of up to Kes. 50,000 if the broker is not able to pay you.
