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4 Smart Ways To Avoid Losses In Forex Trading In Nigeria

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avoid losses in forex trading

4 Smart Ways To Avoid Losses In Forex Trading In Nigeria

Forex trading is like a two-edged sword. One edge is sweet while the other is bitter. You can losses in forex trading here. Forex trade can be a fortune to some, while On the other hand, to the rest it’s the greatest of misfortunes. They find it difficult to avoid losses in forex trading.

Whether Forex Trading becomes a fortune or misfortune to one depends on the individual’s trade practices. This is a function of what one does, how he does them. This act alone is the strong determinant of whether or not the trader makes profits.

Forex if well traded can rake in lots of profits, but can also lead to devastating losses, if badly traded. In essence, all that matters in forex is good trading practices. In that light, this article is here to share practical and out-of-experience tips on how to make huge sums from forex trading and at the same time avoid losses in forex trading.

Kindly read and digest the tips below and you are on your way to wealth:

Ways to avoid losses in Forex trading in Nigeria

  1. Avoid Taking excessive risks.

Beginners in the forex world ought to do themselves and their new careers a huge favor by desisting from huge risks. It’s not advisable to trade huge amounts as a beginner, even if you can afford to. This is because it’s a sure way of gradually losing it all.

Losses in the market are inevitable not minding how experienced the trader is, but as a beginner it’s always more frequent. Hence, the beginner can do himself a whole world of good by minding the loss margins he’s risking at any point in time.

Experts in forex trading have advised that beginners in the market should risk a margin of not more than 1%. This is to give them solid fortress in times of losses. A loss of 1% per trade implies that it would take the trader 100 trades to lose all his deposits. That’s a long trade margin. On the other hand, if the trader risks 10% of his funds, it will take him Just 10 losses to go bankrupt.

Related: Three trusted ways to fund your forex account in Nigeria

The beginner should always do well not to over risk his funds. This will help him avoid losses in forex trading. When you are just starting out in the Forex market, it can be really easy to get caught up in the leverage of the market.Keeping yourself grounded is the best way to make sure you use the Forex market to your best potential.

Over-leveraging one’s trading account, also known as risking too much, is probably the single biggest reason forex traders lose money in the market. You must understand and effectively implement a sound forex money management strategy if you wish to survive long enough in the market to build up your trading account.

Many traders make the mistake of becoming over-confident as they experience an early bout of success in the markets and as a result begin to risk more than they can afford to lose on any given trade. This makes it impossible to avoid losses in forex trading.

Define your money management strategy in your forex trading plan before entering any live trades and you just might be able to avoid this most ubiquitous of trading mistakes and build your forex trading account much faster.So, It’s advised to cautiously trade in bits till you master the market and is able to make more successful guesses about the trend.

  1. Over Trading kills.

Avoiding over trading is another way to avoid losses in forex trading. The frequency with which a particular trader navigates the market is a deciding factor to how long he lasts in the market. Experiences have shown that the most successful traders are not really frequent traders. This is resultant from many reasons.

There are many factors that affect the forex market and these factors determine the profitability of the market at each point in time. Trading can only be profitable when these factors are profitable. These factors range from Government policies, demand and supply of currency, international trade etc. It would be foolhardy to go into trading when these factors are unfavorable and volatile.

A beginner is advised to always take caution to know when it’s Favorable or not to trade. This will save him some unfashionable losses. Probably one of the biggest reasons why traders overtrade is because they think they will somehow build their trading accounts faster by trading the market with a higher frequency.

On the average, traders who trade smaller numbers of transactions each year typically make more money than their counter-parts because this is a smart way to avoid losses in forex trading.. Experience has shown that forex trading has favorable time paths. These time paths record more wins than losses. It’s mostly in the mornings in Nigeria. You should only trade if there is a sound logical reason, such as a very well defined pin bar setup or other price action setup. If you are trading just because you want to be in a trade or you are trying to make money “faster”, you are going to seriously delay increasing the value of your trading account.

  1. Commence Profit Taking

This has to do with the perfect exit strategies. This may seem novel to many but it has been the stronger foot of experts in the market and the weak foot of most beginners and losers.The failure to come up with an exit plan is capable of turning a promising trade into a lost one. An exit strategy can help save the trader from losses in case of sudden reversals in the market trend and also forecast future trends.

When this strategy is not in place, the trader seems to be in a mess.

Most traders concentrate most of their technical analysis on their entries with the attitude of, “I’ll figure out my exit strategy after I enter the trade…I wanna see how it does first”. The problem with this thinking is that you are setting yourself for an emotional exit, which will almost necessarily result in you losing money or making less than you otherwise would have.

The only way YOU can successfully TRADE the market is by pre-defining all aspects of your trading actions, otherwise the MARKET will “trade YOU”, which means instead of mapping out your plan of action before the battle begins you will be forced to compete with your emotions during the heat of battle, and this almost always results in lost money.

You can avoid losses in forex trading if you focus on commencing profit.

  1. Get a Forex Trading Plan

The idea of a forex trading plan may seem too ambiguous to many. To put it as simply as possible, a forex trading plan is simply a sum total of every other smart tip discussed above.

Getting a trading plan is as simple as documenting the above smart tips. A forex trading plan is a necessity for every trader who wishes to succeed in the business. Having a tangible forex trading plan is the basic effort towards eradicating emotional practices in the market.

Trading plan will give your forex adventure more credence. It further substantiates the the place of forex trading as a business rather than a pass time. For someone who wishes to take the act of trading forex more seriously as a business, the trading plan is an inevitable tool.

A forex trading plan help you avoid losses in forex trading. It should not be viewed as a one-off static document, but rather an ever-evolving accountability tool that you can use to master your own emotions and as a result master the market and also audit your personal progress at same time.

Caution ON Simple Ways To Avoid Losses In Your Forex Trading

  1. Don’t put all of your eggs in a basket

    This is true for any investment and Forex is no exception. Forex should only be part of your investment portfolio, not all of it. Another way to achieve diversification and tackle market volatility in forex is to trade in more than a single currency pair.

  2. Don’t over-risk it

    It’s easy and tempting to leverage yourself a 100 times over. It also makes it pretty easy to lose your shirt. Don’t take huge leverages when a negative outcome could prove too costly for you. It’s easy to lose all of your deposit that way in just one quick fluctuation of the market.

  3. The Stop Loss and stop limit techniques are inevitable

    Trading without a stop loss is like jumping out of a plane without a parachute. You’re going to get splattered and it’s going to be ugly. Also, once you set a Stop Loss, you never take it down. Otherwise, it’s like jumping with a parachute but never intending to open it.The Stop limit helps One get off the emotional boat associated with trendy stock hikes which most times act like a bubble and bursts suddenly beyond imagination. When there is a stop limit, the trader identifies at what point of decline to cash in after a continuous rise.

  4. Do not fight the trend

    Unless you’re a position trader and you plan to hold a position for years based on in depth knowledge of the economic Future, you shouldn’t go against the trend. Remember, there are players With stronger influence on the market. You’re not going to wrestle the market to the floor. What would you rather do, swim with the current or paddle in the opposite direction?

  5. Educate yourself continuously

    The best way to know Forex risk management rules and become a successful forex trader is to know how the market works. This is a continuous thing, so keep at it with the requisite patience.

  6. Use software to help you

    To achieve Forex success, make use of trading software and analysis programs which can help you make a better decision. These systems aren’t perfect, but you can still use them as advisors and something to fall back on. Don’t depend solely on Your manual analysis, it’s Less accurate.

  7. Manage your emotions properly 

    Let all your actions in the market be based on logic and other scientific means and not your beliefs or other sentiments. This will help the trader avoid all avoidable losses.

Do you have anymore tips? Feel free to comment it below!

 

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A Brief Analysis Of The Nigerian Paint Industry

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For decades, Paint manufacturing companies have long been in operation in Nigeria, mostly as subsidiaries of foreign paint companies. As time passed, however, indigenous paint industries sprung up and completely bought over the shares of these foreign firms and continued to expand with every passing year. Several technological advancements have been witnessed since then, with the Nigerian paints industry contributing a significant quota to Nigeria’s economy and employment scheme.

The existence of paint manufacturing companies in Nigeria dates back to as early as the nineteen sixties. Recently, there has been a high demand for paint due to the increase in construction of buildings for private and commercial purposes. This factors thus makes the paint industry a profitable one to invest in.

An Analysis of the Nigerian paints industry

A Brief Analysis Of The Nigerian Paint Industry

A Brief Analysis Of The Nigerian Paint Industry

It has been estimated that the about 128 million litres of paints are consumed in Nigeria within a year. In the year 2012 alone, the Nigerian paints and coatings industry was estimated to be worth about $200m. this grew to about $218m by 2013, signifying an estimated 9.01% growth rate.

There are two major components of the Nigerian paints market. Lack of sufficient access to funds and technical imbalances needed for the production and management of industrial coatings constitutes a major yardstick for distinguishing between the industry players. The first sector is the organized sector which comprises of companies possessing sufficient capital and efficient distribution system.

The second sector is the decorative paint sector, which houses both the organized and unorganized players. This component does not need advanced technological inputs. With a good governmental backing, it is quite easy for new entrants into the Nigerian paint market to thrive in the system.

This sector is dominated by about 5 key companies, each of which’s annual revenue is estimated to exceed $7m, with several other small and medium-scale companies scattered across the country.

So, as it stands, the decorative sector of the Nigerian paints industry accounts for about 60% of the total sales volume and/or value. The industrial coatings segment of the market, on the other hand, is said to constitute about 40% of the total sales volume and 29% of total production volume.

As Frost & Sullivan report, in 2012, the decorative paints & coatings sector of the Nigerian paints industry was said to possess a significant synergy with the real estate industry and estimated at 71% of the overall volume of coatings and pains in the country.

Nigerian paint industry Regulatory Bodies and Associations

The regulatory body for the paint industry in Nigeria is the standard organization of Nigeria (SON).

They are entrusted with the responsibility of ensuring that all manufacturing industries in Nigeria are duly certified, their products are safe and guarantee maximum consumer satisfaction through compliance with government policies.

SON encourages healthy competition amongst manufacturers and also give room for continuous improvement on quality of manufactured products.

Paint Industry Manufacturers Association of Nigeria (PMA)

Asides SON, another regulatory body in the paint industry is the PMA. PMA caters to the welfare of the Nigerian paint industry. It is headed by a chairman and serves as a voice as well as a monitoring body for paint manufacturers in Nigeria.

PMA caters generally for issues bothering on productivity and development of the industry. In 2016, an exhibition was commenced which now holds yearly.

The exhibition which is centered on annual raw materials, equipment and painting show held on the 23rd of October and was tagged “PMA Nigeria Coating Show”.

The event had exhibitors from the United Kingdom, Germany, Greece, Turkey, South Africa and India in attendance. The major aim of the exhibition is to develop strategies on how to handle the issue of high cost and scarcity of raw materials for local production which is a major challenge faced in the industry and to promote paint Technology by sourcing for local contents.

PMA (Paints manufacturers association of Nigeria) functions collectively with SON (standard Organization of Nigeria) to guarantee an acceptable global quality standard for manufactured products.

Challenges and Prospects of the Nigerian Paint Industry

These include:

1)     NEGLECT BY THE GOVERNMENT

The paint industry is one of the most neglected in Nigeria. There are no incentives provided and routine checks are not always carried out. This, in turn, puts a restriction on the percentage of the paint industry’s contribution to the gross domestic product of the country.

Also, the lack of an efficient regulatory system increases the emergence of new industries which lead to a decline in the standard of products manufactured.

2)     ACCESS TO FACILITIES

This can be said to be a major limitation for investors in the industry. These facilities include: constant power supply, access to funding, unavailability of raw materials, lack of proper facilities for certification and test purposes.

Prospects of the Nigerian Paint industry.

These include:

1)     QUALITY CONTROL

Due to the effort of the Paint Manufacturers Association of Nigeria and the standard organization of Nigeria, the quality of paint produced has improved tremendously.

2)     HIGH DEMAND

The increase in demand for paints is as a result of the increase in building construction in the country which has also helped the sustenance of the industry.

LIST OF PAINT INDUSTRIES IN NIGERIA

Paint industries in Nigeria include:

  1. Premium paints,
  2. Dulux Paints,
  3. Meyer paints, Berger paints,
  4. IPWA,
  5. Nigerian German Chemicals,
  6. African Paints
  7. CAP Plc.

I hope we have made your search complete.

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How to Pitch Your Idea to Investors in Nigeria

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Are you an entrepreneur in Nigeria with a business idea that you want to pitch to investors? But you don’t have the finance to invest in the business and the only option left is to look for investors in Nigeria who would love to invest? Read this simplified guide to learn how to pitch your idea to investors in Nigeria in a professional way.

You see, Nigeria is a country with many people with money that don’t know what to do with it. A large chunk of these people will be very happy to invest their money in places that will bring them maximum profits or a good return on their investment. Having the opportunity to meet this class of people (i.e., angel investors) to share your business idea with is one problem.

Here’s what you should know…

You see, it is one thing to have a good business idea, but a completely different thing to know how to pitch it to potential investors. You need the skills of how to convince potential investors within minutes to invest in you, because if you don’t know how to do it professionally, investors won’t be able to understand what you’re trying to relate with them or how best to help you.

The importance of rehearsing your pitch is one thing I can’t stress enough in pitching potential investors in Nigeria. As an entrepreneur, you might think that you know your business in and out, and that when it comes to pitching it to investors, it will be easy just like singing the National anthem (is that even easy?). Well, this is not always the case most times. Cases abound where entrepreneurs freeze in front of investors while pitching, and ramble on and on. Many entrepreneurs don’t put the same effort they used in preparing their business plan to pitching their plan to investors. As such, you should take the time to acquire the needed skills of business idea pitching to pitch your business idea to investors in Nigeria with ease.

How to Pitch Your Idea to Investors in Nigeria

How to Pitch Your Idea to Investors in Nigeria

How to Pitch your Idea to Investors in Nigeria.

1. Start with a story, end with your solution

If you can relate your story to the problem you are solving in the market place, then do it. Nothing engages people better than a good captivating story. Start your pitch with a story that will catch your audience or investor’s attention, the complaint and address it to how your business idea will be the solution to the problem in your story.

So, don’t just keep talking about the problems all day, pitch your idea by showing potential investors how your product or service will solve the hungry market’s problem. Make it easy for the investor to understand how you plan to execute the solution with your idea.

2. Niche down to the exact market you are targeting.

Every product, service or business idea has a specific market it is made for. Don’t lie to investors saying that your product or services is for everybody on earth. It is too broad. Everybody is no market. Tell your investors the market needs your idea is meeting.

3. Analyze Your competitors

A quick analyses of your potential competitors is very important as every business has a competitor even if the competitor is located far away in another continent. Tell the investors how different your business model or approach to solving the problem is from that of your competitors and how much market share you are likely to take if your idea comes to the limelight through their support.

4. State the exact amount you need

Don’t beat around the bush about the exact amount of money you need to fund this idea. Tell investors the exact amount of money that will be required to fund the business idea to success, as well as how much have been invested (if any). Also, give a detailed breakdown of why you need the exact amount you have stated and the intended outcome of the money too. You can do this using slides, charts, tables, diagrams, etc.

These are few tips to know on how you can pitch a business idea to investors in Nigeria. I hope with this  information, you have gained clarity on how you can pitch your idea to investors in Nigeria. Go ahead and put it into practice.

If you have any questions on this topic or a related on, let me know in the comments box below.

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5 Ways to Spot Exceptional Employees in Nigeria

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The Nigerian labor market is very flexible with a skilled, low labor cost, highly motivated, and productive workforce. High level of education and efficiency are common factors for spotting exceptional employees. Besides, exceptional employees are easily self-motivated and self-managed.

Another important factor used for distinguishing an exceptional employee is the personality of the employee. This informs why some people are more successful at work than others? Travis Bradberry of Forbes magazine stated that following a research done around 2016, it was concluded that the key to exceptional performance is in the personality of the employee. Bradbery (2016) stated that the results indicate that “78% of leaders consider that personality distinguishes great employees, much more than cultural adjustment with 53% and even the skills of an employee (39%)”.

However, the qualities that the leaders pointed out as part of the personality are those of emotional intelligence. Unlike personality (which never changes), emotional intelligence can be transformed and improved. So executives don’t need to look for employees who have these skills. His duty, and also that of the company, is to help the entire team to enhance their emotional intelligence to become exceptional.

In essence, a typical team does all of its planning to achieve goals, with minimal intervention from management. Exceptional employees are also known to be healthily self-critical, with a willingness to learn and a commitment to making improvements both in production and performance.

It is clear, therefore, that the key indicators of exceptional employee are high level of education, efficiency at work, self-motivation, self-management, great personality, and emotional intelligence.

However, how can we see these playing out to determine how exceptional an employee? How does one spot the level of education, efficiency at work, self-motivation, self-management, great personality, or emotional intelligence of an employee? It is by observing if the employee has the following characteristics before and after employment.

Exceptional Employees in Nigeria

Spotting Exceptional Employees in Nigeria

5 Ways To Spot An Exceptional Employee.

 Exceptional employees may be spotted using the 5 indicators below:

(1) The Employee Is Willing To Delay Gratification.

Exceptional employees work outside the range of job descriptions. Rather than expect recognition or compensation to come first, they move forward in their work, confident that they will be rewarded later, but they don’t worry if they aren’t.

(2) Exceptional Employees Tolerate Conflict.

While exceptional employees don’t seek conflict, they don’t run from it either. They can maintain their composure while presenting their positions calmly and logically.

(3) Exceptional Employees Are Focused.

Exceptional employees are not distracted by grumpy customers or disputes in the office. Rather, they know how to detect the important issues and that is why they stay focused on what matters.

(4) An Exceptional Employee Is Judiciously Brave but Courteous

An exceptional employee is willing to speak up, ask a difficult embarrassing question, or challenge an executive decision. Besides, an exceptional employee chooses the best time to do act and thinks before speaking.

(5) Exceptional Employees Control Their Ego

While the ego is part of an exceptional employee’s drive to constantly improve, they never overdo it. An exceptional employee admits when he/she is wrong and agrees to do things differently with or without correction.

Becoming an exceptional employee is a skill, an art that can be learned and practiced to efficiency. One of the ways to become an exceptional employee is to establishing open and trustworthy lines of communication with the management and co-workers.

Besides, the Human Resources (HR) department has a role to play in the building of an average employee into an exceptional employee. Rather than dismiss below average or average employees, the Human Resources (HR) team can deploy technology to improve their integration with the entity’s values. In this sense, e-learning, for example, can have great value in developing courses that convey to that person what it means to work in that company and what it contributes to society.

Another mechanism that may be used to is improve an employee’s performance is proper mentoring, that is, involving some of the people with the best reputation and knowledge within the organization to protect and accompany the toxic worker, giving them advice and offering advice whenever they need it. In this way, individual attitudes can change, although care should be taken so that it does not in any way cloud the relationship between the company and the staff.

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