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In the beginning, was the word, and the word was with God, and the word was God. This famous bible verse implies that the creation of the world was based on the sayings of God.
In parts of the world, especially Ghana, most people ascribe anything to the dogmatic principle expounded in the Bible.
For people with such a school of thought, Ecclesiastes 1:9 permeates every aspect of human life and that everything that happens was foretold by the Holy Book.
Just as most people believe in the Bible to dictate whatever happens in the world, forex traders have found a bible verse which in their view is the solid rock on which their trade was established.
Investing in forex trading can be found in Ecclesiastes 11 verses 1 and 2.
From the Good News Translation bible, it reads that “Invest your money in foreign trade, and one of these days you will make a profit.”
“Put your investments in several places – many places even – because you never know what kind of bad luck you are going to have in this world,” the second verse read.
What is Forex Market
The forex market is where currencies are traded for the purchasing of goods and services across borders.
According to Investopedia, a 2019 triennial report from the Bank for International Settlements (a global bank for national central banks), the daily trading volume for forex reached $6.6 trillion in April 2019.
With this kind of trading, there is no central marketplace for foreign exchange. It is rather conducted electronically over the counter (OTC).
How to start forex trading
1. Learn about forex:
According to Investopedia, while it is not complicated, forex trading is a project of its own and requires specialized knowledge. For example, the leverage ratio for forex trades is higher than for equities, and the drivers for currency price movement are different from those for equity markets. There are several online courses available for beginners that teach the ins and outs of forex trading.
2. Set up a brokerage account:
An individual will need a forex trading account at a brokerage to get started with forex trading.
Forex brokers do not charge commissions. Instead, they make money through spreads (also known as pips) between the buying and selling prices. But sometimes, these brokers do take at least 10% commission from you as their service charge, ie, for helping you trade.
3. Develop a trading strategy:
While it is not always possible to predict and time market movement, having a trading strategy will help you in trading.
Remember that forex trading is a high-risk investment and one could make huge sums of money depending on how well the person knows the market trends.
4. Always be on top of your numbers:
Once you begin trading, always check your positions at the end of the day. Most trading software already provides a daily accounting of trades. Make sure that you do not have any pending positions to be filled out and that you have sufficient cash in your account to make future trades, Investopedia stated in their report.
