Forex trading is the act of buying and selling currencies. It’s a lucrative market, as it can be seen as one of the oldest trading ideologies, as currencies, especially fiat currencies, have been around for a long time now. There is quite an interesting dip and rise that happens within currencies, depending on what’s happening in a country and this is essentially what you try to capitalize on in trading. On the other hand, you have commodity trading, which is the act of buying and selling commodities, such as gold or silver – the same principles, different items.
This article aims to shed light and what Forex trading and commodity trading are, the importance of finding the right payment method platform when you are engaging in either one of these and then tips and tricks for approaching forex and commodity training as a newbie. So, without further ado, it’s time to dive in.
What is Forex and Commodity Trading – A Brief Overview
As mentioned above, forex trading is the act of trading currencies. This means that you could purchase USD at a certain value, hopefully when they’re cheaper and then sell them when the currency becomes stronger. You can also do this with pounds or rand or any currency that is currently on the forex exchange.
Then you have commodity trading, which is the act of buying and selling commodities. These commodities vary quite significantly, as they can either be raw materials or primary goods and again, these can be physical or financial. Good examples would include metals, such as silver, gold and copper and then energy resources, agricultural products and even livestock.
Finding the Right Payment Method Platform
One of the most important aspects of trading is the safety of the platforms that you use when transferring funds. After all, the whole point of trading is to transfer funds and hopefully receive bigger funds than you transferred out. In Africa, there are special payment method platforms that are tailored to the needs of their customers, so for forex trading in Kenya using MPESA is quite a popular option as it’s a mobile payment service that allows users to send and receive money and is available in many African countries. It’s quite an essential tool as it bridges the gap for people who don’t have bank accounts and helps increase economic activity in communities in Africa.
It is vital that the payment method platform that you use is one that is safe, reliable and licensed. If you feel that the payment method platform that you’re using is not one of these things, then do not engage. Always look for the eligibility and credibility of the platform before using it and don’t forget that you can also seek out user reviews and testimonials to help understand whether or not a payment method platform is good or bad.
Tips and Tricks to Approaching Forex and Commodity Trading as a Newbie
The thing about forex and commodity trading is that it requires a lot of know-how, you have to invest a lot of time and energy to understand it and there are a few tips and tricks that you can apply to make your journey into this trading sphere a little bit easier.
- Do Your Research: one of the most important things is doing your research. There is nothing more important than understanding what is happening in countries and their political situation and economic situation as this massively affects currencies when it comes to forex trading. The same goes for agricultural or cultural news when it comes to commodity trade. If there is a strike happening at one of the coal or gold mines in South Africa, this can greatly impact the value of a commodity such as gold, which is something you need to be aware of.
- Diversify Your Platform: the idea of diversifying your platform is also massive. It might be a little bit hard at the beginning, as a newbie, however, once you’re more into the idea of trading, it’s important that you have investments in currencies but also look into trading commodities, as this can create a better base and equilibrium for your stocks.
- Don’t Over Invest: never ever over-invest, especially as a newcomer. Always start with a small amount and then see how things transpire. Also, in the beginning, go for the more robust or reliable investments, such as the dollar or the pound, as these fiat currencies have been around for a long time and don’t typically experience that many ups and downs, so it’s a little bit on the safer side.
- Take it Step by Step: keep an account of everything you do and take it step-by-step. Do not try to rush the process or think five steps ahead. Just start at the beginning, do your research, think about smaller investments, don’t get overexcited and essentially keep your ego and pride out of it.
The World of Trading
The world of trading is not always an easy one to understand. However, with the tips and tricks mentioned above, you should have a little bit of an easier time navigating it. Furthermore, ensuring that you always keep safety and security, in terms of the payment methods that you use, in mind, is critical.
Well, now that you know a little bit more about forex and commodity trading, do you think this is something that you might engage with?
