Back in 2015, Dalasi, the national currency of Gambia was experiencing its worst depreciation in history, against many major currencies such as the Euro and the American dollar. The situation has changed as of 2016 when the forex rules and the market determination of the national currency’s exchange rate loosened. This development along with other reforms has moved the country’s gross domestic product (GDP) from $1.3 billion in 2015 to $1.9 billion in 2020. The increase is projected to continue with increase reforms leading to more infrastructural developments e.g Senegambia Bridge, new road etc.
If you are a Gambian looking to participate in Gambia’s up-and-coming global prospects or if you wish to find out more about forex trading especially online, then keep on reading this article.
The Basics of Forex Trading in Gambia
To become financially savvy when it comes to forex trading in Gambia, you must start with the basics. When getting to start trading forex, should work with a broker commonly called the Forex Bureau and check that they are regulated by the Central Bank of Gambia or another important international financial authority. If you are trading your personal funds, there is a limited restriction but trading the account of others with the right licences is illegal.
If you are doing online trading, then you should choose your trading platform based on the ones provided by your broker, or you can find an ECN forex broker yourself. Start testing out the system using a demo account, then start trading when you are ready.
Learn about Forex Trading
Forex trading can sometimes seem complex and difficult. However, with dedication, you can learn all the key strategies on how to make money from forex. Learning benefits in two ways: Minimize the risk of loss as forex is a risky business too with high returns. It also helps you learn some of the best know strategies. Let us share with you some of the strategies.
The next thing you want to do is to come up with some strategies to help you get started with your trading in Gambia. One of the most common strategies used by traders is breakout trading. Breakout trading happens when the price moves beyond a specific level and it can either break above its resistance level or below its support level. That being said, you want to make sure to enter a trade at the right time, when the trending power is in your favor. Another strategy you can use is the return to the mean strategy. The basis of this strategy is that extreme prices are hard to sustain in the long run and that they usually tend to return to their average levels. Other strategies you can use are carry trading, retracement, or reversal trading.
No matter the strategy, or the strategies you plan on using for trading forex in Gambia, make sure to read and educate yourself about all the possibilities and options available.
Choose Your Currency or Forex Pair
Since you are trading forex in online or in the Gambia, you want to make sure to read and choose your currency or forex pair for trading wisely. To maximize your chances, you can choose among the major currency pairs such as EUR-USD, GBP-USD, JPY-USD, CHF-USD, with the first being the strongest one and the following three being more volatile. Additionally, you can use any of the hard currencies with local Dalasi. There are also secondary pairs or exotic pairs you can choose from, depending on your needs and your risk tolerance.
Start Earning Money
Now that you have read some key information about the basics of forex trading, the strategies you can use, and currency or forex pairing, you can start earning money. To maximize your earnings, you can use tools such as shorting currency pairs (selling and then buying a pair at a cheaper price), trading CFDs or currency pairs without actually owning any currency or binary options.
Finally, starting out with forex trading in the Gambia can be intimidating, but with the help of this article, you are now one step closer to reaching your trading goals. Simply learn, test with demo accounts and start to trade live.