Why Invest in a Trading Mentor?

Why Invest in a Trading Mentor

The most common advice you will hear is that almost all successful people have had some kind of role model to show them how it’s done at some stage in their journey. It is no different in the trading game. Trading can be a difficult skill to master, and we believe investing in a trading mentor is a perfect solution.

Get yourself a trading mentor with experience

It is a process to become successful in trading. Many people think trading is an easy and immediate money-making process, but they could not be more wrong. Trading mentors are so valuable as they have been through the trading process and knows all the ups and downs. Mentors can teach you how to deal with this and avoid it.

Save time, learn from the experienced

Learning from someone with trading experience will save you a lot of time. Your mentor can share their story with you and give you advice on this so that you won’t make the same mistakes they did. Use your time strategically to better understand your trading style, psychology and the trading market.

You will save money

Trading can be a risky financial business, if you have no idea how to trade it. A mentor will teach you when to hold your money and when to release it. It’s all about timing and experience. You can potentially make thousands with the right advice and mentor.

You will have constant motivation

Sometimes trading can become lonely and you will feel demotivated. Spending time with a mentor who went through the same process as you in the beginning will help you stay positive and motivated. You can talk to your mentor and ask them questions whenever you feel the need. You will see the potential trading has, and you stay motivated.

Are you looking for a trading mentor? We can help you find a mentor and take the next steps in your forex trading journey.

The Key Attributes of a Successful Trading Mindset

Find The Right Trading Mindset

Online trading can be learned by anyone, but so many people lose their money. So, why is it so hard sometimes?

The problem is not always in the training process, but sometime in the execution of it, within the trading mindset.

The right trading mindset can be the difference between applying the process successfully or not.

What traits do the really successful traders have and what can you learn from them? In this article, we’ll find out by looking at some of the key attributes of successful traders’ mindsets.

Accept failure and take responsibility for your actions

Every successful trader relies on only themselves and doesn’t believe that anybody can give them their success. They believe only in experimenting and discovering their own strategies.

So, remember that no e-book will do your trading for you. Use guidelines but create your own strategy and action plans. Accept responsibility and you will eventually succeed, no matter how long it takes.

Be confident in your strategies and action plans

Confidence is the number one aspect of success; it all starts there. This probably sounds very obvious to you, but believe it or not, it is a trait that many traders lack most of the time.

When you are confident in yourself you won’t just go and follow any self-proclaimed “guru”, and confidence is need in the next few traits.

The key to success? Definitely discipline!

Discipline is a vital aspect of your trading success. A lack of discipline is probably a major reason for many trading failures. You need to be disciplined when following a trading strategy and through periods of losses, which will lead to long-term success.

Always keep in mind, that if there is no discipline to follow your personal strategy, then you don’t have a strategy at all and will fail.

You should be able to make up your own mind

Rely on yourself sometimes, because you are your only life-long companion. Listen to other traders, stay up to date with the latest news and you might learn something, but always be sure to formulate your own ideas instead of just following what others say. Don’t allow your emotions to interfere! This may or may not be your downfall.

Patience!

Patience is so important in forex trading. Not only do you need to have the patience to wait for the right signals, but you must also have the patience to execute your own trading strategy, through periods of losses.

Confront your own truth

You have to confront your own truth. The truth is your opinions doesn’t count, the only truth in this equation is what the market says, no matter what anyone thinks. The trading market is powerful and you need to know when you have got it wrong and be able to act on it.

Therefore you have to create a strategy or set of rules for yourself, that allows you to keep your emotions or weaknesses under control and allows you to deal with failure.

What is Spread in Forex?

Forex experts explain what Spread is in Forex.

A spread in Forex, simply defined, is the price difference between where a trader may BUY or SELL an instrument. A market maker determines these prices based on the prices he gets from the greater market. Traders that are familiar with equities will call this the Bid: Ask spread or bid and offer

A traditional broker earns his commission or fee from the difference in the spread. Which, is the difference between the buyer’s price, and the seller’s price. To the trader, this is the COST of the trade. The wider the spread the more expensive it is for a trader to trade that instrument

Remember you BUY at the seller’s price and SELL at the buyer’s price. This is also known as “crossing the spread” and it is the COST of trading. It is the broker’s commission or brokerage fee.

Since the spread is different amongst brokers, it’s worthwhile to a little online research before you open an account with a broker. If you’ve been with the same broker for a while you may want to research compare spreads with other brokers. You may find relevant information on brokers here.

The forex spread has two prices: the buying (bid) price for a given instrument, and the selling (ask) price. Traders pay a price to buy the instrument and must sell it for less if they want to sell back it right away.

The spread increase or decreases in forex when the volatility increases or decreases. Inactive trading hours or in volatile times market makers compete with each other to be the “best price” or first price in the queue. This in effect means jumping the queue to be the best price resulting in a narrowing the spread.

The opposite is true in less volatile or out of active trading hours. Traders are reluctant to be the best price. This causes a widening of the spread to avoid overpaying or selling too cheaply. Generally, the spread will widen when there is a great uncertainty as to Market direction.

Variable and Fixed Spread in Forex

The bulk of instruments trade with a variable spread. In a variable spread, the difference between the buy and sell price of a currency pair fluctuates in a range, depending on the volatility of the market, or the time you are trading an instrument.

A fixed spread is a spread that remains unchanged regardless of the circumstances, these instruments usually trade with a commission.

Understanding the general forex trade structure shows how the Forex Spread affects your trading. Brokers are the middlemen that conduct the trades. For processing the trades Forex brokers charge for their services. The charge or the difference between the bidding price and the asking price for a trade is called the spread.

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Forex Trading For Beginners To Learn The Basics

Forex Trading Basics Everyone Should Know

In this article, we cover the forex trading basics you should know if you’ve decided you’re going to open a live or demo trading account. The online currency trading market is the largest investment market in the world and continues to grow at a rapid pace. Online trading is a 24-hour market that is only closed from Friday evening to Sunday evening. There are three main sessions; the European, Asian, and United States trading sessions.

It is relatively easy to start trading, but it can be very difficult to become good and successful at it without proper guidance. The benefits of online trading have made accessible to everyone but not everyone is successful. According to statistics, about 90% of traders fail within their first year of trading! This showcases the importance of proper guidance, which we gladly provide, in order to successfully navigate through the trading waters.

Pairs and Pips

Currency Trading consists of pairs and pips. What does this mean? It’s not like the stock market, where you can buy or sell a single stock. You have to buy one currency and sell another currency in the online currency trading market. This will have to be done in pairs. With currency trading, it is priced out to the fourth decimal point.

A pip can also be called a percentage, which means that it is in point the smallest increment of trade. One pip typically equals 1/100 of 1 percent. Beginner traders often trade currency in micro lots, because one pip in a micro lot represents only a 10-cent move in the price.

What are the aspects that influence currency?

One of the biggest things that influence currency is “supply and demand”. Meaning that when the world needs more dollars, the value of the dollar increases and when there is too many circulating, the price drops.

There are other factors that will influence the markets like interest rates, new economic data from the largest countries and geopolitical tensions as well as unemployment rates. This is only a few of the events that may affect currency prices and one should stay up to date in order to trade effectively and efficiently.

The Conclusion

Learning about currency online trading is easy but finding the winning strategies takes a lot of practice. The most important thing is to consult experts in the field and let them help you find the road to trading success.

FICA Documents Required to Open a Trading Account

FICA Documents Required to Open a Trading Account

What are FICA documents?

FICA stands for The Financial Intelligence Centre Act, which came into effect on 1 July 2003.

FICA was introduced to fight financial crime, such as money laundering, tax evasion, and terrorist financing activities. FICA brings South Africa in line with similar legislation in other countries.

Why is FICA Important

The primary purpose of FICA is to protect companies and individuals by eliminating the possibility of money laundering AML (Anti -money laundering) and ATF (Anti-Terrorist Funding) from a transaction.

Why is FICA registration for companies essential?

Registration with the Financial Intelligence Centre (FIC) is a legal requirement applying to all accountable and reporting institutions Registration with the FIC is a legal obligation in terms of the FIC Act.

What is the maximum penalty for the company for noncompliance with FICA?

Penalties for non-compliance with FICA administrative charges, for a natural person R 10 Million and a maximum for a legal entity of R 50 million. If criminal charges are brought a maximum of 15 years ‘imprisonment or a fine not exceeding R100 million.

Prescribed Cash threshold

This means that all cash transactions exceeding R24 999.99 (being R25 000 or more) must be reported to the Centre in terms of section 28 of the FIC Act or aggregated smaller cash amounts exceeding the cash threshold in a specific period

What are suspicious transactions?

Suspicious transaction means a transaction whether or not made in cash which, to a person acting in good faith- Gives rise to a reasonable ground of suspicion that it may involve the proceeds of crime; or. Appears to be made in circumstances of unusual or unjustified complexity.

How does FICA prevent money laundering?

While POCA defines the money laundering offences, FICA compels the business community to take steps to control and prevent money laundering (AML). FICA creates a number of compliance obligations for institutions such as banks, estate agents, brokers, attorneys, insurance companies and motor dealers.

FICA Document Requirements

Full list of FICA Document that could be Required (some documents are mandatory)

Khwezi only requires ID and POA to open an account, PSG, Peregrine, and SAXO require far more but only ID and POA are mandatory.

INDIVIDUAL

Copy of ID document (SA Citizens) / Passport (Foreign Nationals)
Proof of residential address less than three months old (for example, utility bill, store account statement, bank document with residential address, DSTV account, municipal letter)
- Should you not have proof of residential address in your name, you may provide a declaration by a third party confirming that you share a residential address with them and provide the third party’s proof of ID and proof of residential address (less than three months old).
Copy of SARS document confirming income tax number
Copy of bank document confirming individual banking details (less than three months old)

MINOR

Copy of the birth certificate (abridged or unabridged) / ID document
In the case of a guardian, provide documents confirming legal guardianship.
Copy of SARS document confirming income tax number of minor
Proof of residential address less than three months old
- As the parent/guardian, you may provide a declaration confirming that:
  - You share a residential address with the minor.
  - The minor does not have a tax number
Copy of ID document (SA Citizens) / Passport (Foreign Nationals) and proof of residential address of parent/guardian
Copy of bank document confirming parent/guardian banking details (less than three months old)

NON-RESIDENT INDIVIDUAL

Copy of foreign ID document/passport
Proof of residential address less than three months old
- Should you not have proof of residential address in your name, you may provide a declaration by a third party confirming that you share a residential address with them and provide the third party’s proof of ID and proof of residential address (less than three months old).
Document confirming tax registration number
Copy of bank document confirming foreign bank details of the individual (less than three months old)
- For investment products (i.e. retirement annuity, equity-linked living annuity, voluntary investment plan, tax-free investment plan, and endowment), we do not make payment to non-resident bank accounts.
- For stockbroking products (i.e. local shares, offshore shares, and ETPs), we will be able to accommodate payments to non-resident bank accounts

ESTATE LATE

For the deceased we require the following:
- Copy of death certificate
- Copy of ID
Copy of bank document confirming bank details of estate late account
Resolution (if more than one executor)
For the executor/s we require the following:
- Copy of ID
- Copy of Letter of Executorship / Authority
- Proof of residential address (less than three months old)
- Copy of SARS document confirming the income tax number of the Deceased Estate (Estate must be registered with SARS as a Deceased Estate)
- Notice of death and police report where cause of death was not due to natural causes

TRUST

Copy of Trust deed (if applicable, any deeds of amendment of Trust Deed)
Copy of Letter of Authority
Copy of SARS document confirming Income tax / VAT registration number for the trust
Resolution signed by all Trustees nominating authorised signatory/representative
Copy of bank document confirming trust account banking details (less than three months old)
For the authorised signatory/representative, each trustee, beneficiary, and founder of the trust we require the following:
- Copy of ID
- Proof of residential address (less than three months old)
Proof of source of funds.

COMPANY

Company CIPC registration documents
Proof of business address (less than three months old), if different from registered address
Copy of SARS document confirming Income tax / VAT registration number for the company
Resolution on company letterhead signed by all directors nominating authorised signatory/representative
Copy of bank document confirming company banking details (less than three months old)
For the authorised signatory/representative and/or CEO, each director, and each person or corporation with a shareholding of 25% or more in the company, we require the following:
- Copy of ID
- Proof of residential address (less than three months old)
Register of shareholders / written statement from the entity showing ownership and control structure of the company (shareholding diagram)
Proof of source of funds.

NON-RESIDENT COMPANY

Copy of foreign company registration documents
Proof of business address (less than three months old), if different from registered address
Document confirming tax registration number for the company
Resolution on the company letterhead signed by all directors nominating one signatory/representative
Copy of bank document confirming foreign bank details of the company (less than three months old)
For the authorised signatory/representative and/or CEO, each director, and each person or corporation with a shareholding of 25% or more in the company, we require the following:
- Copy of ID/passport
- Proof of residential address (less than three months old)
Register of shareholders / written statement from the entity showing ownership and control structure of the company (shareholding diagram)
Proof of source of funds.

CLOSE CORPORATION

Copy of Founding Statement (CK 1) and Certificate of Incorporation (if applicable, CK2 for any amendments to the Founding Statement)
Proof of business address if different from registered address (less than three months old)
Copy of SARS document confirming Income tax / VAT registration number for the CC
Resolution on the CC letterhead signed by all members nominating one signatory/representative
Copy of bank document confirming bank details of the company (less than three months old)
For the authorised signatory/representative and each member we require the following:
- Copy of ID
- Proof of residential address (less than three months old)
Proof of source of funds.

PARTNERSHIP

Copy of partnership agreement
Proof of business address (less than three months old)
Resolution signed by all partners nominating authorised signatory/representative
Copy of SARS document confirming Income tax / VAT registration number for the partnership
Copy of bank document confirming banking details of partnership account (less than three months old)
For the authorised signatory/representative and each partner, we require the following:
- Copy of ID
- Proof of residential address (less than three months old)

UNINCORPORATED ENTITIES (E.G. CLUBS, CHURCHES)

Copy of document confirming a list of all individuals who exercise control over the entity (constitution or similar founding document)
Resolution signed by all individuals who exercise control over the entity nominating authorised signatory/representative
Proof of physical address for the entity (less than three months old)
Copy of SARS document confirming Income tax / VAT registration number for the entity
Copy of bank document confirming banking details of partnership account (less than three months old)
For the authorised signatory/representative and each member or partner, we require the following:
- Copy of ID
- Proof of residential address (less than three months old)
Proof of source of funds.

Now you know exactly what documents you need to prepare in order to open an account and start trading. If you haven’t found a broker yet we suggest you visit Khwezi Trade. For more insightful articles visit Forex Trading.

How Does Brexit Influence the Trading Market?

Brexit Influence on Trading Market

‘Brexit’ in the trading world has become almost a sort of taboo topic. In the month of October alone, there have been 17 significant happenings with regard to the Brexit debate, and the deadline for a set decision is nearly here.

What effect will Brexit have on the trading market?

Should the UK leave the European Union, and how will this influence the future of trading?

Back when Brexit was announced as a possible move forward for the UK, the forex market took a fall with the British pound dropping with 10% at the level of 1.3230 to the dollar (the lowest since 1985), and the Euro dropping with 4% to the level of 1.0945 to the dollar. EUR/JPY also suffered greatly, reaching an all time low for the last 15 years. If these trends are expected to carry through and possibly worsen when Brexit happens, what is foreseen for the future of the trading market?

Both the British pound and the Euro are expected to remain under pressure and investors are likely to tread safer areas as far as finances are concerned. The likelihood that these currencies will experience a greater decline is also not a far-fetched idea, and a recession may be imminent taking into consideration the uncertainty around global markets and little hope for recovery anytime soon should the losses be fatal.

So, how do traders protect themselves in the event of a Brexit fallout and the worst-case scenarios come into play? The best moves may be to not take risks for the moment being – playing it safe and scouting out the market before moving forward with a risky trade is in your best interest. Try not to commit to long term deals as yet. The future may seem bleak, but a contingency plan like monitoring the market may help you spot trends and avoid the worst of the negative effects on the market by taking calculated steps.

Trading For A Living: Can Online Forex Trading Be A Full-Time Job?

Trading For A Living

Making a career move is always daunting and stressful even for the most confident person. You have to make sure this is something you really want to do; you have to be ready for it. Are you ready to make a commitment towards online trading, to grow and to become better? The biggest commitment to online trading for a living will be less human interaction and more screen-time.

We have put together some of the biggest factors that will influence your decision towards online trading as a full-time job.

Are you willing to take it one step at a time?

The secret to trading is discipline and patience. It takes time to build and test the perfect trading plan. It is a process to acquire the skill set to win in the world of trading.

Do you love data or are you an analytical person?

Does it satisfy you to see technical analysis charts every morning? If numbers and patterns get you excited, then the answer is yes.

Do you have a back-up income or income that will keep you afloat for the next couple of months?

It’s easy to say you want to quit your day-to-day job, but you must keep the monthly expenses and obligations that must be paid in mind. Make sure you have enough money to keep your life running smoothly until you can generate an income consistently.

The main thing to remember is that small profits will lead to big wins. It all takes time, just put in the energy, do research and start planning. This can be your key to financial freedom!

Why Invest in a Trading Mentor

Get yourself a trading mentor with experience

Save time, learn from the experienced

You will save money

You will have constant motivation

Further reading:

Find The Right Trading Mindset

The right trading mindset can be the difference between applying the process successfully or not.

Accept failure and take responsibility for your actions

Be confident in your strategies and action plans

The key to success? Definitely discipline!

You should be able to make up your own mind

Patience!

Confront your own truth

Further reading:

Variable and Fixed Spread in Forex

Further reading:

Forex Trading Basics Everyone Should Know

Here are the essential Forex trading basics every beginner should know.

Pairs and Pips

What are the aspects that influence currency?

The Conclusion

Further reading:

FICA Documents Required to Open a Trading Account

What are FICA documents?

Why is FICA Important

Why is FICA registration for companies essential?

What is the maximum penalty for the company for noncompliance with FICA?

Prescribed Cash threshold

What are suspicious transactions?

How does FICA prevent money laundering?

FICA Document Requirements

Full list of FICA Document that could be Required (some documents are mandatory)

INDIVIDUAL

MINOR

NON-RESIDENT INDIVIDUAL

ESTATE LATE

TRUST

COMPANY

NON-RESIDENT COMPANY

CLOSE CORPORATION

PARTNERSHIP

UNINCORPORATED ENTITIES (E.G. CLUBS, CHURCHES)

Further reading:

Brexit Influence on Trading Market

What effect will Brexit have on the trading market?

Further reading:

Trading For A Living

We have put together some of the biggest factors that will influence your decision towards online trading as a full-time job.

Are you willing to take it one step at a time?

Do you love data or are you an analytical person?

Do you have a back-up income or income that will keep you afloat for the next couple of months?

Further reading: