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The Hardship of Using a Complex Strategy

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Global Sell off - Investors King
  • The Hardship of Using a Complex Strategy

Many people try to follow a complex strategy and fail to make a profit. The profit can be easily made if the people know how to use the strategy at the right time and at the right moment. Most of the investors follow the professionals who are skilled in the industry. These people have a lot of experience and know what they are doing. When the hard tactic is used, a novice person may not understand but a professional can easily use to make the money. This article will tell about the problems that a trader may face when trading with a hard game plan. Keep in mind, not every person will have the same conditions- they will depend on the skill and knowledge a person has, the results will vary.

Creating false signals

New Singaporean traders are always fascinated with the complex trading strategy. They are trying their best to make things complex with the hope that it will generate more profit for them. When it comes to real life trading, they start losing money on a regular basis. They simply find a way to blame themselves for not following their complex trading system.

But do you really think the problem lies within the system? The simple answer is NO. The biggest problem a trader can have is lack of knowledge. You don’t need to super hard trading system to make a consistent profit. All you need is access to the best Forex trading account in Singapore and a balanced trading strategy. Many traders at Saxo is making millions of dollars just by using a simple support and resistance level trading strategy. So stop making things complex in trading business.

Not understanding the concept properly

The first problem is that people are unable to understand the idea of the trading strategy. The industry is changing and what it needs to become successful is a trading plot that can adapt to the volatility. The old plans may not work and that is why the people are looking for a complex formula. Using this technique, first, make sure you have understood how to use the blueprint.  A person can be given much advice but only follows what he thinks is best. A renowned concept can have many followers but without knowing the idea behind the strategy and understanding it properly, there is no way to improve the profit. A simple system can be easily used when a complex technique needs experience and skill.

The result can be unexpected

Most traders say the result is not what was expected in the trade. The goal was to make a profit but the planning has turned the result. It is for the lack of understanding of the concept. The sector is volatile and there are uncertainties. Even the best people cannot predict successfully future movements. It is best to stick to the common way and avoid the risks. We have seen many wonderful traders started off well in the beginning. These people used simple methods but achieved an amazing result. As they grow older and professional, the plans begin to change and the result was not as good as it was before. It did not take them a long time to understand where the fault was and returned to the first method.

The chances of mistakes are high

With a simple solution, any beginner can follow the advice. However, the hard method can confuse the investors and the flaws can be high. Imagine you have only started the career. The broker will only give the simplest platform to get you started. If a professional looking platform was provided at the beginning, it would take years to understand how to use the different options in Forex. Slowly a person needs to adapt to the industry. A simple way can also be successful if it helps to make a profit. What is important in Forex is to make the money, not to follow a hard plan.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Naira

Nigeria Hits Historic High as Currency in Circulation Surges to N3.69 Trillion

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Nigeria’s currency in circulation surged to a historic high of N3.69 trillion, according to data released by the Central Bank of Nigeria (CBN).

This figure represents an increase of N43.07 billion or 1.18 percent from the total of N3.65 trillion reported in January 2024 and a 13.64 percent year-on-year rise from N3.25 trillion reported in February 2023.

Currency in circulation encompasses the physical cash, including paper notes and coins, actively used in transactions between consumers and businesses within the country.

The latest statistics indicate a considerable uptick in the availability of cash within the Nigerian economy.

The surge in currency supply comes amidst lingering concerns over a potential cash crunch following the monetary policy adjustments by the CBN, particularly the aggressive tightening stance of the Monetary Policy Committee (MPC).

Analysts attribute this spike to various factors, including the fear factor stemming from the cash crunch experienced in 2023 and lingering uncertainties surrounding the administration of physical currency.

Despite the surge in currency in circulation, Nigeria’s economic growth remains sluggish, with projections indicating growth rates of around 2.9 percent to 3.1 percent for 2024.

Also, inflation remains a significant concern, with the headline inflation rate climbing to 31.70 percent in February 2024 from 29.9 percent reported in January 2024, according to data from the National Bureau of Statistics (NBS).

The CBN’s proactive approach to monetary policy, including a historic increase in the monetary policy rate (MPR) to 24.75 percent, underscores the central bank’s commitment to addressing economic challenges and fostering stability amidst persistent pressures.

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Naira

Nigerian Naira Surges to N1,350 per Dollar in Parallel Market

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New Naira notes

The Nigerian Naira has appreciated to N1,350 per dollar in the parallel market, a significant gain from its previous rate of N1,430 per dollar just a day earlier.

Similarly, in the Nigerian Foreign Exchange Market (NAFEM), the naira strengthened to N1,382.95 per dollar, indicating an upward trend across key forex segments.

Data from FMDQ revealed that the indicative exchange rate for NAFEM fell to N1,382.95 per dollar from N1,408.04 per dollar on the previous day, representing a gain of N25.09 for the naira.

This surge in the naira’s value has widened the margin between the parallel market rate and NAFEM to N32.95 per dollar from N21.96 per dollar previously.

Analysts attribute this impressive surge to recent foreign exchange reforms implemented by the Central Bank of Nigeria (CBN).

These reforms, including the consolidation of exchange rate windows and liberalization of the FX market, have contributed to bolstering the naira’s strength against the dollar.

The CBN’s proactive measures aim to promote stability, transparency, and liquidity in the foreign exchange market, fostering confidence among investors and strengthening the national currency.

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Forex

CBN Governor Reveals $2.4 Billion Forex Forwards Under Investigation

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Naira Exchange Rates - Investors King

Governor Yemi Cardoso of the Central Bank of Nigeria (CBN) disclosed that law enforcement agencies are currently investigating foreign exchange forwards valued at $2.4 billion.

This announcement came in the wake of the Monetary Policy Committee (MPC) meeting held in Abuja on Tuesday, March 26.

Governor Cardoso shed light on the meticulous forensic audit conducted on these transactions, which uncovered numerous discrepancies, rendering them ineligible for payment.

The CBN, while settling certain tranches of FX backlog, encountered transactions riddled with issues concerning their authenticity.

To address these concerns, Deloitte management consultants were enlisted to conduct a comprehensive forensic analysis spanning several months.

The audit revealed a multitude of irregularities, including allocations disbursed without corresponding requests, lack of proper documentation, and instances of outright illegality.

Cardoso emphasized the gravity of the situation, stating, “We refused to validate them because, apart from the fact that documentation was not satisfactory in many cases, they were outright illegal.”

He underscored the commitment of law enforcement agencies to investigate these transactions thoroughly.

Despite concerns about potential backlogs among stakeholders, Cardoso assured that the market remains open and transparent for addressing any outstanding contractual obligations.

The CBN has diligently verified and settled recognized backlogs of forward transactions.

This revelation comes at a critical juncture as Nigeria grapples with economic challenges, including inflationary pressures.

The MPC’s decision to raise the benchmark interest rate to 24.75 percent reflects efforts to stabilize prices and restore the purchasing power of the average Nigerian.

As investigations unfold and regulatory scrutiny intensifies, the CBN’s commitment to transparency and financial integrity will be closely monitored by stakeholders across the nation.

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