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INVESTMENT AND BUSINESS PLANNERS
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BUSINESS IN AFRICA™
FEATURED ARTICLE
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Businessafrica.net Newsletter
ISSN 1563-4108
INVESTMENT AND BUSINESS PLANNERS Fax: +1 202 478 0432 Click here for contact & support console |
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TAKE CARE OF BUSINESS IN AFRICA™ |
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ISSUE - 38 - JUNE 14 - JULY 15, 2002 FEATURED ARTICLE |
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Mr Ian Mvula, is the Chief broker (CEO) at Online Forex Trading in Lusaka, Zambia. He has pioneered many new ventures in Zambia and the surrounding region including the first Card payphones, the first Internet cafe and now the first International forex brokerage firm. Mr Mvula strongly believes this business is the future of investment banking. |
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DISCLAIMER:
Mr.
Ian Mvula is not a member of AFRICABIZ ONLINE's editorial board.
This is a featured article published by AFRICABIZ on behalf of the
author. Views and opinions expressed are Mr. Ian Mvula's. |
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Risk involved / Is Forex trading affordable? / Is it legal? / How it compares to other Investments / How safe are my funds? |
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Imagine
a business with.. no clients, no selling of any kind, no set hours,
no billing, no collections or high cost to operate, Spot payment guaranteed!
Welcome to the Internet Forex Trading! |
| WHAT IS INTERNET FOREX TRADING? |
Internet
trading of Forex is the changing of one currency to another electronically via
the Internet It is the process of attempting to take small profits in a
very short period of time, from the constant price fluctuation of foreign currencies,
and unlike the stock market, it really does not matter if the currencies traded
are going up or down.
Forex is not a "market" in the traditional sense. There is no centralized location
for trading activity as there is in currency futures or stock market. Trading
occurs over the telephone line and through computer terminals at hundreds of
locations worldwide.
The use of new sophisticated computer programs now offer an outstanding ability
to give precise buy and sell signals to take the guesswork out of trading
while limiting risk. It is not unusual for a person with a reasonable amount
of risk capital and a comprehensive training program to make a profit within
several hours or days of trading.
Using the computer and a good risk management strategy, traders can limit
their losses. Currency traders only assume a risk for which they are well
prepared. Traders profit on currency movements according to a predetermined
strategy and methodology. Forex trading software offers techniques to limit
losses to less than 10 points per lot, per trade. Working with the computer
and Forex trading tools like charts takes much of the financial risk out for
currency traders. So long as traders follow the various calculated signals
they will make money more often than they will lose.
| WHO CAN TRADE? |
Virtually
anyone with Internet access anywhere in the world. Telecommunication technological
advancement has attracted many to this industry, Individuals, small businesses,
banks and multinational corporations. Trading can be conducted any where- in
the office, at home, on an aeroplane, bus, or ship. It is, paperless and offers
no set hours, no billing, no collections, no selling of any kind or high costs
to contend with. Trading can be done anytime and anywhere in the entire world
on the computer or telephone.
| HOW CAN I START TRADING THIS EXCITING MARKET? |
As a
beginner you will need to establish a demo account and place practice trades
until you are familiar with Forex trading. The software for demo trading
and all other Forex tools like charting software can be download free of
any charge at the OFT web site www.forexplatform.com.
While DEMO trading, you will place these trades without worrying about profit
/loss or making mistakes. By placing these practice trades each day you will
begin to experience both winning and losing trades and develop a "feel" for
the market and trading itself.
| WHERE CAN I GET TRAINING? |
Yes! Currency
trading may be answer but Learning is the key. Understanding the currency
markets takes some time, there is additional Forex Education offered at the
OFT web site with
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Live Courses· |
It is important
to practice with dummy money (demo trading) in the real market until you are
confident enough to trade "real money". But most importantly you need
to undertake some training offered above.
| IS THERE ANY RISK IN TRADING CURRENCIES? |
Yes!
Trading currencies is a risky business. But the risk is that which the
trader is well prepared for. The use of Forex trading tools, for example charting
software takes the guessing out of trading. There are also Forex signals (trades
and trading patterns of experts) which a trader can follow to reduce risk
and maximize profits.
But the bottom line is this; to become a successful Forex trader it is crucial
to receive as much training as possible and to use the Forex trading tools.
If you sticks to the rules (all which you will receive in the tutorials)
you will make money, but if you are not disciplined you could lose
an entire investment in a very short period.
| IS
FOREX AFFORDABLE? |
Yes. Judge
by yourself!
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Demo software is free at this site www.forexplatform.com |
| IS
FOREX TRADING LEGAL? |
Yes!
Perfectly legal. Although exchange control regulations will vary from
country to country. However this is what your local bureau de change and commercial
bank does for business every day- in physical-walk-in-contact style of business.
In fact, many commercial banks overseas and other business houses are already
making as much as 70% of their net earnings trading the currency markets on
the Inter Bank Foreign Exchange Market (IBFXM).
| COMPARISON TO OTHER INVESTMENT OPPORTUNITIES |
How is
the Forex trading opportunity compared to the stock market, features, bonds,
commodities and other investment opportunities?
No matter what business opportunity you may consider this is the ultimate
business. At 150 times larger than the US stock, this industry is one of the
fastest growing today. The Forex market is huge; in September 1992 The
Wall Street Journal estimated the trading volume at $1 trillion per day. Today,
it is believed to have grown in excess of $1.5 trillion per day
- Liquidity
This market can absorb trading volumes and per trade sizes that dwarf the capacity
of any other market. On the simplest level, liquidity is a powerful attraction
to any investor as it suggests the freedom to open or close a position at will
- Access
A substantial attraction for participants in the Forex market is the 24-hour
nature of the market. In Forex, a participant need not wait to react to a news
event, as is the case in most markets. Global Interbank Foreign Exchange Market
(Forex) is open 24 HOURS A DAY.
- Flexible
Settlement Many professional investment managers have a particular time horizon
in mind when they establish a position. In the Forex market, a position can
be established for a specific period of time, which the investor desires.
- Global Interbank
Foreign Exchange Market (Forex) is opened 24 HOURS A DAY, Sunday 7:00pm
EST to Friday 3:00pm EST (for USA) Trading can be done any time day or night.
In Forex there is no need to worry about tomorrow's market opening 200 points
against you - the brokerage Dealing Desk accepts market, entry, limit and stop
orders AROUND THE CLOCK via the Internet or by phone.
| WHO WILL LOOK AFTER MY FUNDS ON MY REAL ACCOUNT? |
A "segregated
account" is the best available protection against the potential
bankruptcy of a brokerage company. OFT and its partners are only brokerage
offering such accounts for clients with an account balance of $10,000 and
over.
Under a segregated account, the funds of a client are completely separate
from the company's operational accounts. OFT will open an individual account
in your personal name with the JP Morgan Chase Bank (formerly known as the
Chase Manhattan Bank), where all your funds are safely held while you are
trading.
You may receive banking statements by request. The JP Morgan Chase Bank sends
all statements to the company's main office; a copy of a client's statement
is faxed or mailed to him/her on an individual basis, with a small charge
per statement.
The segregated account is not a money-bearing account. Your account
balance will be updated monthly in accordance with your trading results. All
transactions will be reflected in your monthly statements.
To withdraw funds from your segregated account you must close all trading
open positions, fill out a withdraw request form and fax, mail or scan and
email it .
In next issue I will discuss the history of Forex Trading, the primary factors
influencing exchange rates and also I will compare Forex with other instruments.
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Online Forex Trading is an affiliate of Capital Market Services LLC.
Capital Market Services LLC is a full member of NFA (US National Futures
Association) and received the FCM (Futures Commission Merchant) status
from CFTC (US Commodity Futures Trading Commission) as it is required
in accordance with the Futures Modernization Act 2000, accepted by US
Congress in December 2000.