Is it worth the risk for the average person?
What effect does Angela Merkel have on an online trade in South Africa? What does a twitter comment by Donald Trump have to do with an ever changing US and South African market, the Rand vs the Dollar? What does the VBS bank scandal have to do with trading, how will it affect my trade? “These are questions often asked by budding traders and while the answer is quite simple, understanding how to get there needs to be explained” says Daniel Kibel, CEO of online trading company CM Trading.
“The ever changing political and economic situation in any country has an effect on trading, on share and commodity prices and on the strength and weakness of your trade. A good general knowledge of the world around you would help immeasurably. Read the news, listen to the news, watch the news. While it might not be as exciting as watching a reality series or a sitcom, I cannot stress the importance of knowing the implications of your immediate economic climate as well as international situations.”
“As a would be trader, with no experience, we do offer the Make Me A Trader programme which guides and directs the inexperienced individual on how the market works and how to hopefully trade successfully and ultimately profitably that would either enable them to better their lives, to buy that car, to pay those school fees, or to enable them to reinvest in a new or existing share or commodity – this programme is offered at no cost to the individual but rather encourages responsible and informed trading with less risk.”
“That is not to say that there is no risk in trading. People need to use their heads, they need to use their knowledge and have a good sense of the direction they want to go in. With all that in their arsenal the trader has more chance of long term success in the market. As long as you have the know-how and you are able to ‘read’ the markets, no move should be catastrophic as you would be able to make or change your trade at the appropriate time.”
“In South Africa for example, the government has always tried to encourage savings, but it has been conventional savings, that is, putting your money in a savings account and earning interest. However, if you look at the rate of inflation, it seems that you are actually taking your money and burning it with a 1 – 3% loss, meaning that the rate is higher than what you are getting back – it hardly seems worth it!”
“Some banks offer an interest rate of 10% on a fixed deposit over 5 years, some 6% for a 3 month fixed deposit, all their terms and rates are different but generally they are better for a fixed deposit – meaning your money is tied up for the amount of time agreed upon with your banker. With trading on the other hand, you can make your money in a matter of minutes (obviously when properly informed and when understanding the markets around you). You can do the trade from the comfort of your home or your laptop, ipad or mobile phone from wherever you are – it is quick, easy and through responsible trading with a regulated company, can be lucrative.
“All that being said, trading is high risk but I really believe in my heart of hearts that more people should trade, there is so much to be made, to be done and it is an exciting business to be in – every day you wait is a day lost – don’t lose anymore!”
About CM Trading: An FSCA-regulated company, CM Trading offers the best trading experience both locally and internationally and is a source of information and a conduit to successful trading on any and all trading platforms including: Forex Trading, CFD Trading, Stocks, Cryptocurrencies, Indices Trading, Commodities Trading and Currency Trading.
For more information on CM Trading please visit their website https://www.cmtrading.com/, or contact them on +27 10 500 80 26 or via email email@example.com . You can also follow them on Twitter @CMTrading_FX and Facebook @CapitalMarketsTrading.