Getting rich in kenya if you come from a humble background is like climbing mount Everest without resources to facilitate the journey. It is close to impossible for a poor person to become rich in kenya.
The root problem
In my observation, the leading problem affecting our economy is the lack of appropriate education.
The education curriculum in Kenya and around the world is still built on traditional and outdated concepts that fail to impart its learners with the necessary knowledge and skills crucial to dealing with the fast pacing changing times within the contemporary society.
Other problems
Many people will continue blaming the world but what we forget is that corruption is here to stay and corrupt people have and will remain being the order of the day. Main causes of poverty will not be eradicated by blaming the government. What is daunting is the fact that appointing leaders with integrity is not happening any soon in Kenya and Africa in general.
Bad leadership in Kenya
Yes, bad leadership is also a major problem as to why the poor continue suffering while the rich continue getting richer.
Forget what you learnt in school
As the subtitle suggests, forget what you learnt in school, its close to useless out here. Many people who failed in school are succeeding out here compared to those that passed with flying colors. Don’t get me wrong, its my observation and I’m certain you will second me. This is not to say that school wasn’t or isn’t important, what I meant is that many things that we were taught in class are not practical in the current world.
I earlier said that the educational curriculum in Kenya is not working since its built on traditional and conventional methods that are not practical. Many parents pressure their children to study with the hope that they will get decent jobs after graduating but that’s not the case. The rate of unemployment is very high in Kenya and that is why you will find many graduates in the streets doing jobs that they shouldn’t be doing.
Have you ever asked yourself why? For me its simple, people and especially the youth were fed with the notion of living a decent life has to come by being employed which shouldn’t be the case. Many people in kenya and especially graduates waste a lot of there time tarmacking hoping to be employed in a big company.
Things would have been quite better if people would have been told the truth. Education garnered from school is not the root of wealth or rather a good life. The only purpose of education was to inform, discipline, guide and provide exposure for networking. Education is not a ticket to a good employment. therefore, if you eliminate employment, you will find many graduates doing great things that they have never even thought of in the past.
–The poverty line in kenya is something to worry about.
Forex trading has become increasingly popular in Kenya over the years, with many people looking to make a living or earn extra income from the financial markets. However, success in forex trading is not guaranteed, and it requires discipline, dedication, and a solid strategy to achieve profitable trades consistently.
Therefore, there are several things that you need to know before venturing into forex trading. In this post, we will discuss some tips on how to be a successful forex trader in Kenya.
Forex trading in Kenya
6 Tips to Become a Profitable Forex Trader in Kenya
1. Education
Education and Training Before you start trading forex trading, it is crucial to invest in education and training.
There are many online resources, books, and courses that can help you understand the basics of forex trading, such as technical and fundamental analysis, risk management, and trading psychology.
You can also attend webinars, workshops, and seminars organized by reputable forex brokers and traders.
2. Forex Broker
Choose a Reliable Forex Broker Choosing a reliable forex broker is critical to your success in forex trading. The broker you choose should be regulated by a reputable regulatory authority. They should also have a good reputation, offer competitive spreads, provide a user-friendly trading platform, and offer a variety of trading instruments.
As a forex trader, it is your sole responsibility to check the broker’s customer support, withdrawal and deposit methods, and trading conditions. Some of the reputable forex brokers in Kenya comprise of Exness, HF Markets, Pepperstone, XM, IC Markets, AvaTrade, and FXPesa among several others.
3. Trading Plan
Develop a Trading Plan A trading plan is a blueprint that guides your trading decisions, and it should be based on your trading goals, risk appetite, and trading style. Your trading plan should outline your entry and exit points, stop-loss and take-profit levels, trading time frame, and risk management strategy. A well-designed trading plan helps you to minimize emotional trading, avoid impulsive trades, and improve your trading discipline.
4. Practice
Practice on a Demo Account A demo account is a virtual trading account that allows you to practice trading with virtual money without risking your capital. Practicing on a demo account helps you to test your trading strategies, fine-tune your skills, and gain confidence in your trading abilities. You should practice on a demo account until you are consistently profitable and comfortable with your trading strategy.
5. Risk Management
Manage Your Risk Risk management is crucial in forex trading, and it involves managing your capital, determining your risk-reward ratio, and setting stop-loss orders to minimize losses.
It is also advised never to risk more than you can afford to lose, and you should aim to preserve your capital while seeking profitable trades. A good risk management strategy can help you to stay in the trading game for the long term.
6. Track Performance
Keep a Trading Journal Keeping a trading journal is an effective way to track your trading performance, review your trades, and identify areas for improvement.
Sample forex trading journal
Your trading journal should include the date and time of your trades, the trading instrument, the entry and exit points, the reason for taking the trade, the result, and your emotions during the trade. A trading journal helps you to learn from your mistakes, refine your trading strategy, and develop your trading skills.
Summing up, forex trading in Kenya can be a lucrative endeavor if you approach it with the right mindset and strategies. By investing in education and training, choosing a reliable broker, developing a trading plan, practicing on a demo account, managing your risk, and keeping a trading journal, you can increase your chances of success in forex trading. Remember that forex trading is a journey, and you should be patient, disciplined, and persistent to achieve your trading goals.
Let’s be real. Kenya is full of young, brilliant minds with endless energy, fresh ideas, and the hunger to succeed. Everywhere you look, someone has a business idea that could change their life and maybe even create jobs for others. But here’s the catch—turning that idea into an actual, functioning business needs one thing that feels like a giant mountain to climb: money.
And where do most people think they’ll get it? A bank.
But if you’re a young person in Kenya, the thought of walking into a bank and asking for a loan can feel intimidating. The paperwork, the eligibility rules, the collateral you probably don’t have—it can seem like the doors are already shut before you even knock.
Here’s the good news though: it’s not impossible. With the right preparation, some smart planning, and a bit of patience, you can actually walk into a bank with confidence and walk out with the funding you need. This guide will show you how.
Step 1: Understand the Banking Landscape in Kenya
Before you even think about filling out a loan form, take a moment to understand the financial world you’re about to step into. Kenya has a pretty vibrant banking sector. You’ve got big names like Equity Bank, KCB, Cooperative Bank, NCBA, and Standard Chartered. Each of them has different loan products, different requirements, and different interest rates.
On top of that, the Kenyan government has created youth-friendly programs like the Youth Enterprise Development Fund (YEDF) and the Uwezo Fund, which exist to make it easier for young people to access credit without the heavy conditions that commercial banks sometimes impose.
So, before you rush in, research. Know who offers what. Sometimes, a smaller, more targeted youth loan fund could be a better fit than a traditional bank loan with strict collateral demands.
Step 2: Be Clear About Your Business Idea
Here’s a hard truth: banks don’t lend to vague dreams. They lend to well-thought-out, realistic business ideas.
So, before you even approach a bank, ask yourself:
What exactly is my business about?
Who will my customers be?
What problem am I solving in the market?
What makes my idea different from what’s already out there?
You need clarity. If your business can’t be explained simply, then you probably need to refine it more. Think of it this way—if you can’t explain your idea confidently in 60 seconds, how will you convince a banker to risk their money on you?
Step 3: Write a Solid Business Plan
Once you’re clear about your business idea, it’s time to put it on paper. This is where a lot of young entrepreneurs get stuck because they think a business plan is just for big, complicated businesses. Nope. Even a small kiosk idea can have a structured business plan.
Your business plan is basically your road map. It should include:
A simple description of your business
The target market and competition
How you plan to reach your customers
How much money you need and what you’ll use it for
A financial forecast (even if it’s just an estimate)
How you plan to repay the loan
Banks love details. If you can show that you’ve thought through every aspect—how you’ll make money, how you’ll manage costs, and how you’ll pay them back—they’re more likely to take you seriously.
Step 4: Choose the Right Bank or Loan Program
Not every bank is the same. Some have very strict lending policies. Others have products specifically designed for young entrepreneurs. For example:
YEDF and Uwezo Fund are government-backed and more youth-friendly.
Equity Bank’s Jijenge Loan or KCB’s Biashara Loan have flexible terms for small businesses.
Take time to compare interest rates, repayment terms, and eligibility criteria. Don’t just walk into the first bank you see. The right match could save you a lot of stress and money.
Step 5: Check the Eligibility Requirements
Here’s where many young people hit a wall. Banks usually have requirements like:
A minimum age (usually 18+ but sometimes 21+)
Kenyan citizenship or residency
Proof of income or a good credit history
Collateral (for some types of loans)
Now, if you’re just starting out and don’t have assets or a credit history, this might feel like a dead end. But there are ways around it. You can:
Join a group lending program where members guarantee each other
Use business assets or equipment as collateral
Start building a good credit history early by responsibly using mobile loans or small credit facilities
It’s all about being strategic.
Step 6: Gather the Necessary Documents
This part might feel boring, but it’s important. Banks won’t process your application without the right paperwork. Common documents include:
Your national ID or passport
A well-prepared business plan
Bank statements (if you already have a business account)
Proof of business registration (if applicable)
Any collateral documents
Evidence of your own contribution to the business (even a small amount)
The more organized you are, the better. Messy paperwork is one of the fastest ways to delay or even lose a loan opportunity.
Step 7: Build Your Financial Knowledge
Banks want to lend to people who understand money. That’s why many financial institutions and government programs offer free training on financial literacy and entrepreneurship.
Before applying, it’s worth attending these classes. You’ll learn how to:
Manage cash flow
Keep basic records
Understand interest rates and repayment schedules
Plus, completing such training looks good to lenders. It shows you’re serious about running your business responsibly.
Step 8: Submit Your Application and Be Ready for Questions
Once you have your documents, business plan, and some financial knowledge, it’s time to apply.
When you meet the loan officer, be confident but also realistic. Be ready to answer questions like:
How much money do you need and why?
How will your business generate income?
What’s your repayment plan?
And if they challenge your numbers or question your assumptions, don’t panic. They’re not trying to discourage you—they just want to see if you’ve really thought things through.
Step 9: Be Patient and Follow Up
Getting a loan approved isn’t like buying airtime on M-Pesa. It can take time. Sometimes days, sometimes weeks.
So, after you apply, don’t just sit and wait forever. Follow up politely. Ask if they need any more documents or clarifications. Stay professional. Meanwhile, keep building your skills and preparing for the day the money actually hits your account.
The Challenges You’ll Face—and How to Overcome Them
Let’s not sugarcoat it. Getting a bank loan as a young Kenyan entrepreneur has real challenges.
1. Lack of Collateral Most young people don’t own land, a car, or big assets. But you can explore group guarantees or use business equipment as collateral. Some government funds also don’t require collateral at all.
2. High Interest Rates Banks sometimes charge high rates, especially for unsecured loans. This can eat into your profits. Look for government-backed funds with lower rates or youth-friendly terms.
3. Strict Eligibility Rules Banks often want to see a history of stable income or previous loan repayment. If you’re just starting out, build your financial track record gradually. Start with small savings, join SACCOs, or use mobile loan products responsibly to show you can handle credit.
So, Is It Worth It?
Yes. It’s worth it—if you approach it the right way. A bank loan can help you scale faster, buy better equipment, or expand your reach. But it’s not free money. You need to plan how you’ll use it and how you’ll pay it back without drowning in debt.
The truth is, getting a loan isn’t about luck. It’s about preparation. If you understand the system, have a clear plan, and show that you’re serious, you’ll be surprised how many doors can open—even if you’re young.
Final Takeaway
If you’re a young Kenyan entrepreneur dreaming of turning your idea into a thriving business, don’t be discouraged by the challenges. Understand the banking landscape, refine your business idea, prepare a strong plan, choose the right institution, and build your financial knowledge.
Most importantly, be patient. Banks move slowly, but determination and preparation always pay off.
Your energy, creativity, and hustle can transform not just your life, but your community and even the Kenyan economy. A bank loan is just one tool to get you there—use it wisely.
Varieties of markets in Nairobi include open-air markets, meat and fish markets and vegetable markets as well as clothes or flea markets—known as “mitumba’’—where people go thrift shopping. It is always a delight when you visit a market and manage to get the things you’re looking for. Markets offer plenty of alternatives and a variety of designs for the sake of picky customers. There is also interaction in the market places. You also get to see the different marketing skills of the vendors, which contributes a lot to the overall competition.
Here are some of the many notable markets located throughout Nairobi City. This tour is not for the light-hearted and is full of adrenaline. If you would like to experience the hard-core urban life in Nairobi, you are at the right place.
Gikomba
Gikomba is the largest and most-famous clothes-flea market in Kenya. Kenyans love searching for vintage treasures in the market, and Gikomba is the place to start this hunt. If you are an early riser, go on Saturday morning and get yourself a new wardrobe. When it’s rainy, it can be so muddy! Its a labyrinth of narrow pathways, shouting vendors, and an amazing amount of clothes. A insider tip is to visit this market on a Saturday morning after 7 am because that is when the vendors bring their new bails of clothes.
2. Muthurwa
Muthurwa Market is very busy and noisy market where they sell all kinds of things including clothes and food. This market is very congested and noisy.
3. Mtindwa
Mutindwa market is situated between Buruburu and Umoja One Estate. One can find shoes and dresses ranging from Sh20 to Sh1, 500 here. You can get swimming costumes, shoes, bags, dresses, shoes and undies. If you want to look fabulous in the latest fashions without spending a fortune, this is the place to go. The market has a section of groceries as well.
There was a time when this was the best place to get all second-hand things but due to structural development in Buruburu not much is sold. It is a great place to get secondhand bags and shoes.
4. Maasai Market
The Nairobi Appeal parking lot is the busiest Maasai market in Nairobi. It is held at the vast law courts parking lot. With variety to choose from: curios, décor items, unique-African jewellery, and fabric. In Kenya, there are many Maasai markets. It happens every Saturday.
5. Kariakor Market
With over 200 stalls, people can buy wholesale jewellery, footwear, leather goods, baskets, décor items, and curios. Shoppers can get things for affordable prices and while Kariokor is mainly for people who want to buy and resell, patrons can also go there to buy one item. Companies and vendors in Kariokor produce goods for both local and international consumption.
6. City Market
City Market is under the management of the Nairobi City Council and is located on the junction of Market Road and Muindi Mbingu Street. The market has many stalls selling woodcarvings, art, sculptures, soap-stone pieces, drums, and paintings among other items. Vendors also sell flowers, fruits, and vegetables as well as meat ranging from fish, mutton, beef, pork, and chicken.
7. Ngara Market
The huge market in Ngara offers people fresh vegetables, grains, and fruit, and second-hand clothes. The stalls are found in the heart of the station. This market has an assortment of ingredients not found in other markets, but the market’s goods are more expensive than those found in other open-air vegetable markets.
8. Kamkunji Market
A Kenyan vendor sells second-hand shoes (locally known as mitumba) at the Gikomba open-air market
Kamukunji Market is an open-air market known for the wholesale of utensils. It has many vendors selling quality household goods from kitchen wear, toiletries, and many more.
A forex trading strategy is a method of determining whether to purchase or sell a currency pair by a forex trader. Traders can employ a variety of forex strategies, such as technical analysis or fundamental analysis. A good forex trading strategy enables a trader to analyze the market and execute deals with confidence using sound risk management approaches.
An Overview of Forex Trading Strategies
Forex methods are organized into a specific organizational structure that might help traders choose the best strategy for them. The figure below depicts how each forex strategy fits into the larger framework as well as the relationships between them.
Profitable Forex Trading Strategies
In order to develop a trading strategy that works for you, you must consider a number of elements. There are a plethora of tactics to choose from, but comprehension and familiarity with the plan is critical. Every trader has different aims and resources, which must be considered while choosing the best approach.
Traders can compare the suitability of different tactics using three criteria:
Time resource required
Frequency of trading opportunities
Typical goal distance
I have created a bubble chart to make it easier to compare the forex strategies based on the three criteria. The ‘Risk-Payoff Ratio’ is plotted on the vertical axis, with strategies at the top of the graph providing a bigger reward for the risk taken on each trade. The approach with the highest risk-to-reward ratio is often position trading. The time investment on the horizontal axis reflects how much time is required to actively monitor the trades. Because of the high frequency of transactions executed on a regular basis, scalp trading is the approach that requires the most of your time resource.
Forex Trading Strategies Comparison
1. Price Action Trading
Price action trading involves the study of historical prices to formulate technical trading strategies. Price action can be used as a stand-alone technique or in conjunction with an indicator. Fundamentals are seldom used; however, it is not unheard of to incorporate economic events as a substantiating factor. There are several other strategies that fall within the price action bracket as outlined above.
Length of trade:
Price action trading can be utilized over varying time periods (long, medium and short-term). The ability to use multiple time frames for analysis makes price action trading valued by many traders.
Entry/Exit points:
There are many methods to determine support/resistance levels which are generally used as entry/exit points:
Fibonacci retracement
Using candle wicks
Trend identification
Indicators
Oscillators
Range, trend, day, scalping, swing, and position trading are all types of price action trading. These techniques comply to a variety of trading restrictions, which will be discussed in greater detail further down. The examples demonstrate a number of trading tactics for various strategies, as well as a selection of bespoke alternatives for traders to pick from.
2. Range Trading Strategy
Range trading includes identifying support and resistance points whereby traders will place trades around these key levels. This strategy works well in market without significant volatility and no discernible trend. Technical analysis is the primary tool used with this strategy.
Length of trade:
There is no set length per trade as range bound strategies can work for any time frame. Managing risk is an integral part of this method as breakouts can occur. Consequently, a range trader would like to close any current range bound positions.
Entry/Exit points:
Oscillators are most commonly used as timing tools. Relative Strength Index (RSI), Commodity Channel Index (CCI) and stochastics are a few of the more popular oscillators. Price action is sometimes used in conjunction with oscillators to further validate range bound signals or breakouts.
An Example of USD/JPY Range Trading
Over the last few years, the USD/JPY has been stuck in a price range for quite some time. The chart above shows a distinct support and resistance band that traders utilize as entry and exit signals. The shaded blue and red boxes on the RSI oscillator show the timing of entry and exit points. – blue: overbought and red: oversold.
Range trading can result in fruitful risk-reward ratios however, this comes along with lengthy time investment per trade. Use the pros and cons below to align your goals as a trader and how much resources you have.
Pros:
Substantial number of trading opportunities
Favourable risk-to reward ratio
Cons:
Requires lengthy periods of time investment
Entails strong appreciation of technical analysis
3. Trend Trading Strategy
Trend trading is a simple forex strategy used by many traders of all experience levels. Trend trading attempts to yield positive returns by exploiting a markets directional momentum.
Length of trade:
Trend trading generally takes place over the medium to long-term time horizon as trends themselves fluctuate in length. As with price action, multiple time frame analysis can be adopted in trend trading.
Entry/Exit points:
Entry points are usually designated by an oscillator (RSI, CCI etc) and exit points are calculated based on a positive risk-reward ratio. Using stop level distances, traders can either equal that distance or exceed it to maintain a positive risk-reward ratio e.g. If the stop level was placed 50 pips away, the take profit level would be set at 50 pips or more away from the entry point.
Example: How to identify a trend
In the simple example above, EUR/USD exhibits an upward trend validated by higher highs and higher lows. The opposite would be true for a downward trend.
EUR/USD Trading on a Trend
When you see a strong trend in the market, trade it in the direction of the trend. For example, the strong uptrend in EUR/USD above.
Using the (CCI) as a tool to time entries, notice how each time CCI dipped below -100 (highlighted in blue), prices responded with a rally. Not all trades will work out this way, but because the trend is being followed, each dip caused more buyers to come into the market and push prices higher. In conclusion, identifying a strong trend is important for a fruitful trend trading strategy.
Trend trading can be reasonably labour intensive with many variables to consider. The list of pros and cons may assist you in identifying if trend trading is for you.
Pros:
Substantial number of trading opportunities
Favourable risk-to reward ratio
Cons:
Requires lengthy periods of time investment
Entails strong appreciation of technical analysis
4. Position Trading
Position trading is a long-term strategy primarily focused on fundamental factors however, technical methods can be used such as Elliot Wave Theory. Smaller more minor market fluctuations are not considered in this strategy as they do not affect the broader market picture. This strategy can be employed on all markets from stocks to forex.
Length of trade:
As mentioned above, position trades have a long-term outlook (weeks, months or even years!) reserved for the more persevering trader. Understanding how economic factors affect markets or thorough technical predispositions, is essential in forecasting trade ideas.
Entry/Exit points:
Key levels on longer time frame charts (weekly/monthly) hold valuable information for position traders due to the comprehensive view of the market. Entry and exit points can be judged using technical analysis as per the other strategies.
Example 3: Germany 30 (DAX) Position Trading
The Germany 30 chart above depicts an approximate two year head and shoulders pattern, which aligns with a probable fall below the neckline (horizontal red line) subsequent to the right-hand shoulder. In this selected example, the downward fall of the Germany 30 played out as planned technically as well as fundamentally. Towards the end of 2018, Germany went through a technical recession along with the US/China trade war hurting the automotive industry. Brexit negotiations did not help matters as the possibility of the UK leaving the EU would most likely negatively impact the German economy as well. In this case, understanding technical patterns as well as having strong fundamental foundations allowed for combining technical and fundamental analysis to structure a strong trade idea.
List of Pros and Cons based on your goals as a trader and how much resources you have.
Pros:
Requires minimal time investment
Highly positive risk-to reward ratio
Cons:
Very few trading opportunities
Entails strong appreciation of technical and fundamental analysis
5.Day Trading Strategy
Day trading is a strategy designed to trade financial instruments within the same trading day. That is, all positions are closed before market close. This can be a single trade or multiple trades throughout the day.
Length of trade:
Trade times range from very short-term (matter of minutes) or short-term (hours), as long as the trade is opened and closed within the trading day.
Entry/Exit points:
Traders in the example below will look to enter positions at the when the price breaks through the 8 period EMA in the direction of the trend (blue circle) and exit using a 1:1 risk-reward ratio.
Example 4: EUR/USD Day Trading
The chart above shows a representative day trading setup using moving averages to identify the trend which is long in this case as the price is above the MA lines (red and black). Entry positions are highlighted in blue with stop levels placed at the previous price break. Take profit levels will equate to the stop distance in the direction of the trend.
The pros and cons listed below should be considered before pursuing this strategy. Day trading involves much time and effort for little reward, as seen from the EUR/USD example above.
Pros:
Substantial number of trading opportunities
Median risk-to reward ratio
Cons:
Requires lengthy periods of time investment
Entails strong appreciation of technical analysis
6. Profitable Trading Strategy: Scalping
Scalping in forex is a common term used to describe the process of taking small profits on a frequent basis. This is achieved by opening and closing multiple positions throughout the day. This can be done manually or via an algorithm which uses predefined guidelines as to when/where to enter and exit positions. The most liquid forex pairs are preferred as spreads are generally tighter, making the short-term nature of the strategy fitting.
Length of trade:
Scalping entails short-term trades with minimal return, usually operating on smaller time frame charts (30 min – 1min).
Entry/Exit points:
Like most technical strategies, identifying the trend is step 1. Many scalpers use indicators such as the moving average to verify the trend. Using these key levels of the trend on longer time frames allows the trader to see the bigger picture. These levels will create support and resistance bands. Scalping within this band can then be attempted on smaller time frames using oscillators such as the RSI. Stops are placed a few pips away to avoid large movements against the trade. The MACD indicator is another useful tool that can be exercised by the trader to enter/exit trades.
Example 5: EUR/USD Scalping Strategy
The EUR/USD 10 minute above shows a typical example of a scalping strategy. The long-term trend is confirmed by the moving average (price above 200 MA). The smaller time frame is then used to target entry/exit points. Timing of entry points are featured by the red rectangle in the bias of the trader (long). Traders can also close long positions using the MACD when the MACD (blue line) crosses over the signal line (red line) highlighted by the blue rectangles.
Traders use the same theory to set up their algorithms however, without the manual execution of the trader.
With this practical scalp trading example above, use the list of pros and cons below to select an appropriate trading strategy that best suits you.
Pros:
Greatest number of trading opportunities from all forex strategies
Cons:
Requires lengthy periods of time investment
Entails strong appreciation of technical analysis
Lowest risk-to reward ratio
7. Swing Trading
Swing trading is a speculative strategy whereby traders look to take advantage of rang bound as well as trending markets. By picking ‘tops’ and ‘bottoms’, traders can enter long and short positions accordingly.
Length of trade:
Swing trades are considered medium-term as positions are generally held anywhere between a few hours to a few days. Longer-term trends are favoured as traders can capitalise on the trend at multiple points along the trend.
Entry/Exit points:
Much like the range bound strategy, oscillators and indicators can be used to select optimal entry/exit positions and times. The only difference being that swing trading applies to both trending and range bound markets.
Example: GBP/USD Swing Trading Strategy
A combination of the stochastic oscillator, ATR indicator and the moving average was used in the example above to illustrate a typical swing trading strategy. The upward trend was initially identified using the 50-day moving average (price above MA line). In the case of an uptrend, traders will look to enter long positions with the old adage of ‘buy low, sell high’.
Stochastics are then used to identify entry points by looking for oversold signals highlighted by the blue rectangles on the stochastic and chart. Risk management is the final step whereby the ATR gives an indication of stop levels. The ATR figure is highlighted by the red circles. This figure represents the approximate number of pips away the stop level should be set. For example, if the ATR reads 41.8 (reflected in the last ATR reading) the trader would look to place the stop 41.8 pips away from entry. At DailyFX, we recommend trading with a positive risk-reward ratio at a minimum of 1:2. This would mean setting a take profit level (limit) at least 83.6 (41.8 x 2) pips away or further.
After seeing an example of swing trading in action, consider the following list of pros and cons to determine if this strategy would suit your trading style.
Pros:
Substantial number of trading opportunities
Median risk-to reward ratio
Cons:
Entails strong appreciation of technical analysis
Still requires extensive time investment
8. Carry Trade Strategy
Carry trades include borrowing one currency at lower rate, followed by investing in another currency at a higher yielding rate. This will ultimately result in a positive carry of the trade. This strategy is primarily used in the forex market.
Length of trade:
Carry trades are dependent on interest rate fluctuations between the associated currencies therefore, length of trade supports the medium to long-term (weeks, months and possibly years).
Entry/Exit points:
Strong trending markets work best for carry trades as the strategy involves a lengthier time horizon. Confirmation of the trend should be the first step prior to placing the trade (higher highs and higher lows and vice versa) – refer to Example 1 above. There are two aspects to a carry trade namely, exchange rate risk and interest rate risk. Accordingly, the best time to open the positions is at the start of a trend to capitalise fully on the exchange rate fluctuation. Regarding the interest rate component, this will remain the same regardless of the trend as the trader will still receive the interest rate differential if the first named currency has a higher interest rate against the second named currency e.g. AUD/JPY.
Could carry trading work for you? Consider the following pros and cons and see if it is a forex strategy that suits your trading style.
Pros:
Little time investment needed
Median risk-to reward ratio
Cons:
Entails strong appreciation of forex market
Infrequent trading opportunities
Profitable Forex Trading Strategies: A Summary
This article outlines 8 types of forex strategies with practical trading examples. When considering a trading strategy to pursue, it can be useful to compare how much time investment is required behind the monitor, the risk-reward ratio and regularity of total trading opportunities. Each trading strategy will appeal to different traders depending on personal attributes. Matching trading personality with the appropriate strategy will ultimately allow traders to take the first step in the right direction.
Register on any reputable forex broker site and you can find many trading webinars in their training site covering various topics related to the Forex market like central bank movements, currency news, and technical chart patterns.
Stay up to date with major news events and economic releases by viewing our economic calendar.
Successful trading requires sound risk management and self-discipline. Find out how much capital you should risk on your open trades.
I’M JUST LEARNING TRADING and I thought it will be good to share with fellow newbies what I have learnt so far.
In the past, trading was a job done only by individuals or rather professionals working in big financial institutions, trading houses and brokerages. However, technology advancement has made it possible for anyone to learn and start trading at the comfort of their houses and in this case,
“You can trade from the comfort of your home”
If done right, I have come to find out that Day trading can be a very rewarding job. However, it is very challenging to start and you should never give up unless you know when it’s the right time to give up as outlined in this article;
Day trading is a form of speculation in securities in which a trader buys and sells a financial instrument within the same trading day, so that all positions are closed before the market closes for the trading day to avoid unmanageable risks and negative price gaps between one day’s close and the next day’s price at the open. Traders who trade in this capacity are generally classified as speculators. Day trading contrasts with the long-term trades underlying buy and hold and value investing strategies. Day trading can be considered a form of gambling.
Day traders are attuned to events that cause short-term market moves. Trading based on the news is a popular technique. Scheduled announcements such as economic statistics, corporate earnings, or interest rates are subject to market expectations and market psychology. Markets react when those expectations are not met or are exceeded–usually with sudden, significant moves–which can greatly benefit day traders.
Day traders use numerous intraday strategies. These strategies include:
Scalping: this strategy attempts to make numerous small profits on small prices changes throughout the day
Range trading: this strategy primarily uses support and resistance levels to determine buy and sell decisions.
News-based trading: this strategy typically seizes trading opportunities from the heightened volatility around news events
High-frequency trading (HFT): these strategies use sophisticated algorithms to exploit small or short-term market inefficiencies
What you need to be a successful day trader
Discipline
Sufficient knowledge and experience in the market
Enough capital
A good strategy
For more information on what you need to be a successful day trader, read this article below before proceeding
The Kenyan treasury released a 3.6 Trillion for the year starting 01/07/2021.This budget is expected to cement in President Uhuru Kenyatta’s 10_years in office which has experienced a tough setting due to a depressed household and cooperate earning amid the Covid-19 Pandemic uncertainties.
To begin with,The Kenyan treasury allocated the Health ministry with sh 121 billion, sh 294.5 billion to the Ministry of Defence, sh 202.8 billion to the ministry of Education, sh 182.5 billion to the ministry of transport and lastly sh 60 billion to the ministry of Agriculture.
First, the sh 121 billion set aside to the Health sector so as to support its programs is broken down as follows: sh 4.7 billion for the universal health coverage, sh 8.7 billion for the covid-19 emergency, sh 4.1 billion to maternity, sh 1.8 billion to the elderly and vulnerable persons,sh 3.9 billion for immunisation and vaccination programs and sh 14.3 billion for the purchase of covid-19 vaccines. In addition, sh 15.2 billion and 11.5 billion was allocated to Kenyatta National Hospital and Moi teaching and referral Hospital respectively so as to improve their health services.
Secondly, the ministry of defence was allocated sh 294.5 billion so as to cater for National police, Defense and intelligence services in order to improve its program. In addition, the treasury set aside sh 1.5 billion to the national communication and surveillance system so as to help fight against crimes in Kenya.
Under the Ministry if Education, sh 2.2 billion was allocated for its programs. Here,sh 62.2 billion is for the free primary and secondary education, sh 4 billion for the K.C.P.E and K.C.S.E candidates and then sh 4.2 billion for the primary and secondary infrastructure. A further sh 281.7 billion was allocated to the Teachers Service Commission while sh 15.8 billion was allocated to the Higher Education Loans Board and sh 2.5 billion was set aside for the recruitment of teachers.Furthermore, sh 5.2 billion was allocated for the TVET students, sh 323 million for National Research Fund and Lastly sh 76.3 million for Universities.
In the Transport sector, sh 182.5 billion was allocated. Sh 700 million is to cater for the Nairobi Bus Rapid transport system, sh 7.2 billion for the construction of the second phase of the Standard Gauge Railway which is running from Nairobi to Naivasha.Sh 7.5 billion is for the Lapset project. A further sh 100 million was channeled to the Nairobi Metropolitan Services to aid in it’s infrastructure projects and also sh 111.2 million for the construction of footbridges.
Lastly, The Agriculture sector was allocated sh 60 billion to cater for food security and its development program. Here,sh 1.5 billion is set aside for the development of the Agricultural sector and sh 1 billion for the construction of a fish processing plant in Lamu so as to boost exports. much of the resources will be set aside for livestock production whereby the government will set up a meat processing plant in Lamu to provide a ready market for livestock which will aid in increasing the farmer’s income.
