WILDLIFE AND ENVIRONMENT SOCIETY OF SA
Associations in Durban

Forex trading is the trade of one currency for another. Doing this to make money involves predicting which currencies are going to strengthen or weaken against others, and buying and selling to make a profit on the trade. This means that there is no cap on potential profits, and it is attractive to those who like to take risks. For the average South African, the idea of a flexible, self-employed lifestyle with the potential for big rewards is clearly proving an idea worth exploring. The Rand is not a particularly valuable currency, but it is a stable one, making it a good starting point for trading. As the Forex market is open 24 hours per day, it is completely flexible, although the most popular times for trade still centre around GMT and EST. South Africa is perfectly positioned in the middle of these two time zones for day trade. The other advantage is that you can invest with a 50-1 leverage, rather than the 2-1 offered on the stock market. On the other hand, it is a volatile and unpredictable market when compared with the stock market, where you have to rely on graph trends. The current popularity of Forex trading in South Africa means that there are a lot of self-proclaimed experts who will give you bad advice, and the lack of regulation means that they are free to do so. If you suspect a broker of fraudulent behaviour though, the FSB have a complaints line by which you can report them. Before you let loose on the market, it is a good idea to get a bit of training; we can’t all be Sandile Shezi. Learn the terminology, get a mentor to run your ideas first and find out a bit of knowledge on patterns and predictions before you put down your first few thousand rand. Even more importantly though, at the beginning, is to make sure that your trainer is reputable and has some kind of certification, so that you aren’t losing money before you’ve even started trading!