Forex Trading In South Africa
Sawubona! Goeie Dag! Molo! Dumela! Heita! Howzit... So, you're a South African resident interested in learning to trade forex? Well, you've landed on the right page. I shall attempt to make it as simple for you to understand and hopefully get you on your way to becoming a successful trader. Consider this your free forex trading training all on one page. No need to fork out thousands of Rand for a 3-day course.
You shall learn the different indicators used by traders, and how to deposit cash into your account to get you on your way. Upon completion, you should be able to open your ZAR forex trading demo account. Forex trading for beginners in South Africa just got simpler! Keep reading below....
Please note that what you will learn also applies to binary options trading. There is no difference.
forex trading platform
The first thing we need you to do is download the IQ Option platform on which you shall be trading. Tap or click on the button that applies to you.
OK, so by now you must have downloaded the IQ Option platform onto your mobile device. It's a small file, so you don't need plenty of data on your MTN, Cell-C, or Vodacom device.
Once you open the app (on your mobile) you might come across something that looks like this. Yours might look a little different (it might not necessarily show Stellar), but that's not an issue.
Your next question is obvious. What do I do now ? Ndibhidekile ! Ke ferekane ! Ek is deurmekaar ! Don't worry. The purpose of this page is to make trading become second nature to you. If you're on a laptop, you should see something similar to the image below.
OK, just so you know, everybody gets a FREE $10,000 demo trading account to practice with. In order to access it, all you have to do is tap/click at the top-right (next to the "Deposit" button. You should see a drop-down menu with two options. The second one is the demo. Go ahead and select that.
How do i start trading forex?
So, trading consists of guessing whether the price will go up or down, right ? Not quite. Experienced traders use something known as indicators to help them increase their chances of closing a successful trade, and minimise losses. Sometimes you cannot just look at the chart and guess where the price will end up after 5 minutes, or 5 hours. Before we continue, watch the video below that explains the different types of charts contained within IQ Option.
Is this all starting to become less confusing ? Good. Let's move onto the next step now. Let's teach you about the different indicators used for trading forex.
Selecting an asset to trade
How do we choose what asset to trade? Do you see the + at the top-left? Tap that, and you should see a drop-down menu that you can select from. You have Crypto (where you will find bitcoin and the likes), Digital, CFD (company stocks), and Forex. This is on the mobile phone. On the PC/laptop version, there is a fifth option, and it's called Options. This is where you will trade binary options. Unfortunately, it's not available on the mobile app.
Trading forex or binary options without the use of indicators is tantamount to driving blindly - it's not smart, and quite dangerous. When it comes to trading, it's very risky indeed.
There are a total of 99 indicators (101 on mobile) on the platform that are at your disposal, and you can use these to your advantage. South Africa, are you ready to learn trading ? Let's get this ball rolling. Open up your platform (if you're on a mobile phone), and look for that symbol at the bottom-left that's circled.
If you're on a laptop/PC, then it should look something like this (see image below). The Indicators button is right at the bottom. Don't worry about those lines and dots. You're about to learn all about them. Those are some of the indicators, by the way. :-)
Once you click the button, you should be presented with a list of some of the most popular indicators available on the platform. Let's briefly run through a forex trading indicator tutorial for each of them, shall we ?
This is used to determine the trend strength. ADX stands for Average movement Directional Index.
Traders use the ADX to determine when a trend is moving upwards or downwards, and whether the trend is strong or not.
Click Here to learn more about this indicator.
Traders use the Alligator to determine the direction of a trend. It is also used to pinpoint when a trend may be forming, as well as when there's an absence of one.
The Alligator is an interesting indicator to have in your trading arsenal, and you can learn more about it by visiting this page.
ATR stands for Average True Range, and it's used to measure the volatility of an asset. Its creator intended for it to be used when trading commodities like gold and silver, but traders also utilize it to gauge the volatility of stocks as well. You may decide to use it for the same purpose.
Read up on it here.
This is a technical tool that warns traders of a possible trend reversal. It also measures the market momentum. The A.O. has three main strategies, and you can learn about them here.
The Belkhayate is a new one on the block for IQ Option. It consists of three zones; a red one, a green one, and a middle one that has no color. When you see the price chart touching, or within the red zone, one would generally expect the price to go down. Similarly, when it touches the green, this normally signifies the beginning of a bullish (upward) trend. What if it's in the middle? You do nothing!
Do you see those three lines (blue, white, and yellow) in the image above? Those are Bollinger Bands. Like the ATR, they also measure volatility, but in a different fashion.
To learn more about this indicator, please visit this link.
CCI stands for Commodity Channel Index, and it's also an oscillator. It tells the trader when an asset is in the overbought and oversold zones. Confused? Enrich your knowledge from this page.
This indicator is used to determine reversal points (because the price an asset will always go up and down). It's best used with the Alligator. To see how this is done, get more information here.
When you first open this indicator you may begin to feel dizzy! It looks like a seismograph, and not a tool for trading. To see what we mean by this, just take a look here. This indicator is primarily used on JPY pairs.
This indicator is very similar to the Stochastic Oscillator. It consists of one more line than the Stochastic, the J-line, and that's how it gets its name. Learn more about the KDJ Indicator here.
This is a very popular tool amongst traders. It basically shows you whether the price is moving upwards, or downward. There are four types of M.A's, and you can learn more about them if you go to this page.
The MACD is also a form of moving average indicator, and it's short for Moving Average Convergence/Divergence. It can be used for stock trading, as well as trading currency pairs like the USD/JPY, or USD/ZAR, for instance.
Educate yourself about the MACD here.
Wouldn't you like to know what's going to happen to an asset in the future? Whether it will go up or down....? This is where the Parabolic SAR comes into play.
Do you see the dots in the image above? That's what it is. Learn more.
RSI is short for Relative Strength Index, and it's a very popular indicator amongst experienced traders. It can tell you when you should BUY or SELL, and this can be extremely helpful. Read up more !
This indicator helps traders determine when a trend could be ending. Like the CCI above, this tool can also inform a trader when the asset is in the oversold or overbought zone. Learn about the Stochastic Indicator by clicking this link.
IMPORTANT NOTE: It is recommended to use around 2-3 indicators to be certain of whatever signals one is giving you.
So, by now you must have an idea of how trading works. Now it's time to put it into practice. Have you downloaded the platform yet? Don't forget that you have to register and verify your new account. This shouldn't take too much of your time at all. You should receive an OTP via SMS, and you'll be on your way.
In case you have yet to get your free binary and forex trading demo account, you can do so below.
RISK WARNING: YOUR CAPITAL MAY BE AT RISK
By now you should have probably gone through all the indicators that IQ Option has to offer for your binary and forex trading options. You want to deposit real cash. Don't forget that you can open a ZAR trading account.
Don't forget that you get a FREE $10,000 demo trading account with IQ Option. This equates to about R153 000. It's recommended you use this until you feel comfortable.
Let's say you are ready to start trading with real funds, how do you go about it? You can use your VISA/Mastercard from any of the major South African banks. These include FNB, Capitec, Nedbank, ABSA, and Standard Bank. If you have an account with any other bank, it shouldn't be a problem. All you need is either a VISA or Mastercard debit or credit card. Now, a lot of people ask themselves whether they can start trading with R100, or even R200. This is fine.
NB. During your first deposit attempt, the transaction may decline, and this is expected. What you must do is call your bank and just inform them that you are trying to make a deposit to IQ Option. Once they authorize your card, it should go through the second time.
For illustration purposes, let's see what the deposit screen looks like on a mobile phone. You can see the options given to you. Now, the minimum you can deposit is $10 (about R152), but for trading, this is too small an amount. It is recommended that one deposit an absolute minimum of $100 (R1520). If you can start with $5000, then all the better! Your profits will be higher. $5000 is about R76 300. Don't worry though. Start with whatever amount you are comfortable with. If you want to start trading with R200, that's fine.
The minimum you can use per trade is $1. It's recommended that you use no more than 5% of your balance for trades. For example, if you have $300 in your IQ Option account, then the most you should trade with is $15.
don't trade with emotions
This is a very important section, so read it carefully.
Whenever you are trading it is imperative that you do not let your emotions take over. Let's illustrate this better.
Let's say you are trading, and you have won the majority of your trades. You have already profited enough for the day. You get excited, and say to yourself that you should trade some more, and then you lose the first trade. You try to recoup your recent loss, and then lose some more. You repeat this process until eventually you wipe out your entire account. At this point people start saying that trading is a scam. It's not. You just weren't a smart trader. Once you get your 3 or 4 wins, STOP FOR THE DAY.
This, ladies and gentlemen, is how people end up losing all their money. Don't fall into this trap.
Trade responsibly, and remember that trading is risky. Learn the indicators properly.
Well, South Africa, there you have your tutorial on binary/forex trading. Make sure you have downloaded your platform already. The links are above.
If you're reading this from another country, this still applies to you. You may also download IQ Option, and start trading too.