Forex Trading in Dubai – Learn The Golden Rules

Dubai has maintained its position as an entryway to the Emirates for investors. It successfully managed to become a hub for finance and trade. Individually speaking however, Dubai Forex traders and traders around the world - experienced and beginners - tend to lose sight of the most essential tenets of Forex trading. This is not a surprise though. There is a vast amount of information today concerning Forex trading that it’s quite easy to end up swamped with the nonessential aspects.

When I share my knowledge to other traders here in Dubai, I frequently tell them that Forex trading and its concepts, theories and core applications haven’t changed much in the past several years. I remind them a few rules that any trader should never forget:

Golden Rule #1 Have Specific Goals and Objectives

Few things are more important to your trading success than having set goals and objectives for what you want to attain. If you have a bunch of things in mind, then it is a good idea to get them on paper and off your mind. That way, you’ll be able to set plans in an organized manner. This will also keep your head from being filled with things you need to remember while trading. Be realistic with your objectives however. While not impossible, it is unlikely to make a million dollars in a year if you are just starting out with a few thousand bucks.

Golden Rule #2: Always Have a Sound Money Management Plan

While Forex trading can be the most lucrative venture, it can also be the most tragic one if you don’t have a good money management plan in place. Even if you have the best trading setup out there that is highly profitable, without a sound money management plan, you will easily lose everything. Know how much you are looking to make as well as whether or not you should redeposit immediately after a losing trade.

Golden Rule #3: Be Educated

Forex trading is a life-long learning process and you should be willing to embrace this if you are really serious about it. Successful trading involves keeping up to date with the latest news and a vast amount of related information. Being well-educated means that you have done your research, tested your trading strategies and are updated with the latest news and updates that will determine how you conduct your trades.

Rule #4: Be Consistent and Disciplined

There is nothing that can damage your trading system more than being disorganized and inconsistent. After developing your trading plan, you should have the discipline to stick to it whatever happens (assuming that it is complete). That is why it is important that you have a high confidence in your trading systems. Take your time in developing your trading system until you are certain that it will be beneficial for you in the process.

Rule #5: Never Trade Money that You Can’ Afford To Lose

A lot of traders make the mistake of depositing a large amount of money and failing to realize that there is the potential to lose all of that in each trade. Remember that trading is about taking a risk that you can handle in order to reach a good reward. Do not trade money which you need to pay the bills as well as if your expenses are not covered by another income source. Otherwise, this will only result to unnecessary stress which can negatively affect your trading performance.
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Forex Trading in Dubai -Answers to Your 5 Most Frequently Asked Questions

Dubai is generally known as the commercial and financial hub of the Emirates. It has the second largest economy among all Emirate regions and has shown buoyancy even in the face of today’s challenging economic environment.

Currency trading, also known as Forex trading, has exploded in size and popularity in Dubai, UAE. It used to be that trading currencies was only possible for the elite and affluent people because of the large size of capital required. After some time however, Forex trading opened its doors to the average people, allowing them to trade in the markets with a few thousands or hundreds of bucks. The fierce competition among Forex brokers has also resulted to more opportunities for people to trade currencies.

After hearing the potentials of Forex trading and its advantages over real estate, stocks, annuities, CDs and other investments, you may want to consider taking the plunge and join the community of Forex traders. But before you do that, there are a number of things you should understand in order to determine whether Dubai Forex trading is for you or not. Below are 6 of the top questions asked by people who are looking to get started in Forex trading.

Why Should I Trade Forex Online in Dubai?

There are a number of benefits of trading Forex online. Some of the major reasons why Forex trading is advantageous include its high level of liquidity, 24-hour operation, opportunity to profit whether the market is up or down, low start up costs and convenience.

What are My Other Choices for Online Trading in Besides Forex?

Besides Forex, you can also choose to diversify your investment portfolio by trading precious metals namely gold, silver and copper. You can also consider trading oil and soft commodities. Several Forex brokers out there offer the feature to trade multiple products in one platform and account. 

How Much Do I Need In Order To Start Trading?

Not that you should but most Forex brokers allow traders to start for as little as $50. The most important thing to remember is that if you are really serious about Forex trading, then you should treat it like a real business. And as with any other business, it requires a considerable amount of capital to start. Be realistic and don’t expect to make $1 Million or even $100,000 from a $100 capital within a year. 

How do I Know a Dubai Forex Broker is Legitimate?

One way you can do this is by checking if the broker is regulated by a regulatory board in the country where it operates. Legitimate Forex brokers are under the supervision of regulatory boards so if a broker you’re looking at does not provide this information in its website, then it’s probably not regulated and legitimate.

Can I trade Multiple Products in a Single Account?

While many brokers offer one product only, there are some that offer multiple products, therefore making it possible for traders to diversify their investments. HY Markets is one example.

Is There a Regionally-based Broker Here in the UAE?

There are several. As more and more Dubai-based investors are entering the Forex market, brokers have decided to provide regionally based platforms that cater to them. The Dubai Gold and Commodities Exchange (DGCX) has the highest trading volume among all UAE based brokers. It offers commodity future contracts, currency futures and options as well. HY Markets, another Forex broker catering to Middle East-based traders allow for trading multiple products in one platform.

Surely, there are a lot more questions than the ones mentioned above. But the best way a Forex can learn about the ins and outs of Forex trading is by actually doing it hands-on. Thankfully, most Dubai Forex brokers today offer demo accounts for those who want to get their feet wet but aren’t yet ready to trade with real money.
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