Trading is a trendy career direction, and it is more than a fad. Young people in South Africa make money online even before they finish studying. The largest financial market is at their fingertips – a click or a tap away. Becoming a trader is an attractive prospect. Here is why.
How Trading Works
The word ‘trading’ may conjure up an image of a stock trader from classic Hollywood movies. It is an old-school way to buy and sell financial instruments. Today, everything takes place online. Unlike the stock exchange, Forex has no physical centre. Buyers and sellers connect online through intermediaries. These are called brokers.
The process of currency exchange is familiar to all travellers. International import and export are built on it. Every day, trillions of US dollars circulate in a gigantic financial marketplace, the largest in the world. Since the 1990s, it has been accessible to individuals (i.e., retail traders). They buy low and sell high, cashing in the difference. Here is how to get started:
- choose a Forex trading broker;
- register a demo account;
- download and install the recommended platform or app;
- practice demo trading for free;
- switch to a live account;
- start real-money trades.
What Software Is Used
Forex is reached through various software. Every broker has its own range of recommended systems. The most popular trading platforms are universal and used across the industry. Some brokers invest in app development and focus on proprietary solutions like FXTM Trader.
Young people are used to doing everything on the go, using smartphones and tablets. Forex providers keep up with the trends. Today, one may open a position via their laptop, modify it from a tablet and close via a smartphone, or in any other order. All versions connect to the same servers and share data instantly. Nobody is tethered to one’s PC anymore.
Increased Accessibility of Forex
A lion’s share of the daily Forex trading is generated by institutional players. The foreign exchange is where large banks, hedge funds, and corporations buy and sell currencies in immense volumes. In comparison, individuals account for a tiny fraction.
You do not have to invest thousands of dollars. Global brokers are tailoring their offerings to the needs of South African youth. Education and demo trading are free. In addition, Forextime allows you to open a live account with only $10. A range of payment methods is accepted.
To trade online, you need a platform and a registered account. Knowledge is shared through articles, books, webinars and even YouTube tutorials. Channels like Warrior Trading have a wealth of insights for traders of all levels.
Beyond Retail Trading
Retail traders are their own bosses. They use their capital for lucrative decisions. There is no supervisor to report to and no colleagues to tolerate. The industry also offers regular job opportunities, but these require formal qualifications – often, a degree in finance or economics.
With the right credentials, you may become an employee of a broker. This could be the same intermediary you have been working with! Career opportunities are plentiful. The list of existing positions includes:
- Forex Market Analyst
- Forex Account Manager
- Institutional Trader
- Forex Industry Regulator
- Forex Exchange Operations Associate, etc.
In addition, brokers need professionals for generic positions like an HR manager, PA or accountant. They have offices, and their hierarchies are similar to companies in other fields. Therefore, you do not necessarily need a finance degree.
A Few Caveats
Currency trading is always risky. The forces that set rates in motion are beyond any trader’s control. You cannot influence the monetary policies of entire nations, oil prices or international diplomacy. Profit is based on accurate predictions. Sometimes, force majeure disrupts profitability – just think of any major market shock like the Great Depression or the latest pandemic.
Risk is not inherently evil. Failures are inevitable – they are experienced even by the most distinguished experts. Traders learn to keep the damage under control. Every strategy includes a risk management plan. This involves using Stop Loss, limiting risk to 1% of capital, etc. Learn as much as possible about this side of trading.
Achieve Financial Independence
Young Forex traders can start small and turn their passion into a career for life. The opportunities are not limited to retail trading – the industry offers a range of 9 to 5 positions for those who want the security of conventional employment.
Millennials and Zoomers are adept at using digital tools. These skills can help them achieve financial freedom early in life. Forex does not discriminate – it gives everyone a chance to make money. With persistence and diligence, you can achieve a lot. Remember to check your broker’s background though – licensing is crucial.