Forex Trading in South Africa Complete Beginner’s Guide 2025

The winners are always in it for the long haul, as they understand that this is a time game of compounded, small wins, not the roulette table at the local casino. Well-informed, responsible trading decisions, a perpetual willingness to learn, and an unwavering commitment to disciplined risk management are the keys to success. In addition, the ability to profit in both rising and falling markets sets forex apart from traditional stock trading. Since currencies are always traded in pairs, there’s always potential for profit, whether a particular currency is strengthening or weakening.

The forex market is for active traders, meaning investors who regularly buy and sell. The first reason is that returns to passively holding foreign currencies are low, similar to the money market. When U.S. investors buy euros in the forex market, they invest in the EU’s money market. Money markets worldwide generally have low expected returns, and so does forex. It’s best to start using little or no leverage and gradually increase it as profits and experience grow. With trillions of dollars changing hands daily, traders can typically enter and exit positions with minimal slippage, even for large trade sizes.

How Do You Make Money Trading Currencies?

Businesses trading internationally often use it to protect themselves from currency value changes. For instance, a company buying goods in a foreign currency might trade forex to secure a better exchange rate and avoid unexpected costs. If you are serious about becoming a better all-round forex trader – then you must learn how to perform technical analysis. This means that you will be using chart drawing tools and technical indicators to find trading opportunities. The best way to learn how to do this effectively is to practice via a demo account.

• In the intricate realm of Forex Trading, understanding the dynamics of currency markets is paramount.
• Traders use charts, technical analysis, and news events to predict short-term price movements.
• These include the Euro against the US Dollar, the US Dollar against the Japanese Yen and the British Pound against the US Dollar.

Begin With a Small Investment

• You might decide to trade the most popular currency pair EUR/USD because it tends to display the tightest dealing spreads and a relatively smooth market.
• On any given trade there is a chance that it could be a win or a loss.
• Traders need to stay informed about these factors and analyze their impact on currency movements to make informed trading decisions.
• In fact, expert traders rarely close their trades manually as they rely on their take-profit or stop-loss orders to close the trades exactly when the price reaches the value they want.
• Analyzing forex market trends, monitoring and reviewing trades, and continually educating yourself are essential components of a successful trading journey.

These markets are often used to protect against possible future changes in currency prices (this is called hedging). One of the best ways for beginners to make consistent profits is by focusing on forex trading strategies that require minimal time commitment yet provide an edge. Either way, if you want to trade currencies online – you will need a good forex broker on your side. EToro stands out for us, as the broker is heavily regulated, offers nearly 50 FX pairs, and charges some of the lowest fees in this industry. Forex trading can be an overly emotional marketplace for beginners. how to make money from forex trading After all, even the most seasoned of traders will lose money at some point – as this is just part and parcel of speculating on forex prices.

Supported payment methods include debit/credit cards, Paypal, Neteller, and a bank wire. This included thousands of shares from 17 international stock exchanges, as well as commodities, indices, cryptocurrencies, and ETFs. If you are interested in the previously discussed Copy Trading tool – which allows you to access the forex arena passively, eToro is the best broker for the job. The platform is home to thousands of verified forex investors and you can use the Copy Trading tool fee-free.