Catching up on Forex Trading

When you hear the word FOREX you might be overwhelmed or think it is something too difficult to learn but in actuality, many Nepalese in major cities of Nepal have experience of a forex transaction.

Being in Nepal everybody knows a person or two living in foreign lands. You also must have heard about exchange rate differences when exchanging Nepalese Rupees to Indian Currency(IC), US Dollars, Baht, Yen or Ringgit. This exchange of Nepalese Rupee to other country’s currency in layman’s term is forex. . 

The forex market, similar to our share market, is a place where currencies are traded.    

The exchange rate between two currencies is based on the demand and supply of the currencies in question. Let’s say you are going to exchange Nepalese Rupees (NPR) to US Dollars (USD), the price you can buy one USD depends on the demand and supply of a USD in the market on that day at that time. That is why one day the value of a USD could be Rs. 101.25 and the next day it could shoot to Rs. 105.20 or drop to Rs. 97.45.  

What people did previously only when traveling to other countries is now a common investment practice.  Some people take it as an investment opportunity others as sports. But one mustn’t underestimate the necessity to understand the market and keep yourself updated whether you are a new or an old player in the forex market. Here are a few tips you should take into consideration. 

Do not procrastinate
Successful people do not put off anything for tomorrow. They are always on top of things and get things done instantly. So, keep up with the dynamic forex market and start learning from all the sources available to you    the internet, books or people who are trading. 

Practice and keep learning - As in every field, the popular statement ‘practice makes perfect’ applies here too. You are unlikely to succeed on your very first try so you need to be consistent with your trading efforts to get the desired results. Keep experimenting and learning a little bit every day. As the forex market keeps shifting, you will keep learning about how it works and what strategies you need to adopt. 

Recognize the risks 
Never dive into anything without considering the risks associated with the same. You should accept the possibility of failure, even if you are a seasoned player. You must be realistic about your Forex trading methods and goals. Remember to invest only what you can bear because you could be failing more than earning in your early days.

Start with a single currency pair - The unpredictable nature of the forex markets alone is enough to make it complicated. For this reason, it advisable to begin by focussing on a single currency pair. It may be better to choose one with the currency of your nation or one which is widely traded. 

Control your emotions - Giving into feelings of panic, greed or excitement is a sure shot way of ruining your trading career. Don't get carried away with your emotions. It can be very difficult at times, especially when you have a losing or a winning streak. But having a level head will help your make rational and competent choices.

Keep a record
Keep track of all your investments and strategies along with your success and losses. These records are one of the key steps to being successful in the trading market. 

Keep in touch with the trends
One particularly important Forex market tip is to learn about trends. The ability to spot trends is a valuable one. Trends can show you what to expect in the market, so you can pro-actively adjust your trading strategy. 

Now, you might be curious about how Nepalese currency is performing in terms of global trade. Nepalese currency is among the sea of weaker currencies in the market. It has held its value at more than a hundred rupees against a single USD for quite some time. The rate is even changing and Nepal experienced an all-time high in October 2018 at Rs 119.33 for $1.