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Financial wellbeing: Make R7750 per month extra through strategic forex trading

(Partner Content) The basis of financial wellbeing is the presence of several sources of income, including passive ones.


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With the development of Internet technologies in South Africa, many ways of getting an extra money appeared. These days one does not even have to leave home in order to be financially secure and make money. Forex trading became one of the means to do that.

The South African financial market

The South African financial market is considered to be one of the most developed in the continent. Recently due to some economic reasons, South Africa has emerged on the world’s forex map and started to attract traders from all over the world. Also, there are about 190 000 South African forex investors who trade or invest in forex on a daily basis. 

A lot of South African traders are beginners and have only started their trading path since the booming popularity of forex in SA during the last few years. Statistically, most of the beginners plan on making some extra income trading while getting the knowledge of it to become a professional. So, is there a strategy to help make that extra R8000-9000 per month?

Trading strategies

Each trader chooses a strategy on his own. This means that he needs to consider his personality and develop a strategy that suits him. What may work well for one trader may be completely unacceptable for another. Conversely, a trading strategy that has been underestimated by others may be right for someone else. Since each trader has different goals it would be helpful to list the tips for making some extra cash that would fit most of the investors in South Africa.

First and the most essential part of forex trading is learning. Only the right knowledge of it would help to make a huge impact and have success in forex trading. It is important to remember that forex trading is a never-ending process, and traders need to continue learning to keep with the dynamic forex market. One of the ways to avoid the consistent losses is to update or change the strategy and the learning can definitely ensure it. Beginners and experienced forex traders alike must keep in mind that practice, knowledge, and discipline are key to getting and staying ahead.

Pick a financial broker

It is also very important to pick a well-regulated reliable broker to trade forex with. With a regulated broker, traders can be sure their funds are safe and protected. Regulation also ensures that proper trading conditions and environment are maintained by the broker – like leverage caps, direct market access, no malpractices by the broker, proper grievance redressal. The Financial Sector Conduct Authority is the South African local regulatory body. It is recommended for South African traders to trade only with forex brokers regulated with FSCA as it ensures safety of funds. 

Tip: Only trade on ECN accredited forex brokers.

Find the right currency pairs

Another important trick is finding the right currency pairs to trade. It is best to trade during those peak periods that guarantee liquidity, which is basically the ability to sell a position. This is much easier to do when the market is most active. It means one of the most profitable currency pairs for South African traders to trade (besides the major ones) would be USD/ZAD pair. There are two key strategic approaches associated with this exotic currency pair, including speculating and hedging. This also includes monitoring the economic calendar so as not to miss the events which may cause volatility in the currency pair.

It is critical to understand what drives the chosen currency pair and also take some time to investigate and learn about this chosen market. After doing the needed studying and research the next step is to select a few positions and hold them for a longer period of time. It is much more profitable and has more value to look at longer-term trends (daily/weekly) instead of looking at hourly or even four-hour charts. In order to minimize any losses, another wise move would be putting in stop-loss orders with all the trades. Such orders as stop-loss or setting limit can ensure a trader does not miss opportunities to enter or exit positions.

Traders, especially newbie traders in South Africa should know and try to avoid the mistake of adding to a losing position in order to make the most of this position. Most of the times, those who do that still hope that the losing position will revert to profit, however it does not happen often and as a result such accounts are simply wiped out.

However, the forex market is very volatile. This makes it risky for all traders if the proper strategy is not implemented. Strategies such as trading specific currency pairs that are at play during the times of day, looking at longer timeframes, implementing price action methods and employing technology will contribute to the success of those who would want to make extra money. Risk tolerance and leverage must also be taken into account for any trader’s broader strategy.

Read more about personal one on one forex courses in South Africa.