 Welcome back to Entrepreneurship Tuesday. My name is Michelle Asheera and we're definitely Entrepreneurship Tuesday. On Why in the Morning, make sure you follow us across all our social media platform. That is at Y254 channel. And one thing about Entrepreneurship Tuesday, we ensure that we inform you, entertain you, and most definitely give you tips on how to make extra cash. And that's why today we are talking about Forex Trading, all right? So Forex Trading is one of the biggest market that accounts for more than five trillion of daily trading, more than five trillion, on a daily trading. So in studio, we have Daniel Wessonga, a man of many titles, most definitely. He's a preacher, entrepreneur, a mentor, and a forex trader, successful one by that. So thank you very much for creating time to be with us today. Thank you so for having me here. All right. So before we even get into the money-making tips when it comes to Forex Trading, I'd like to find out your relation with money from way back. Let's say when you received your first paycheck. Were you more of a person who was looking for extra cash or are you a spender? I love to spend, but I can withhold my desire for instant gratification to look for more money because the money that I have in my hand, the first thing I think is how can it empower me to make more money before I get to the spending? So it's like I want to live off the profit of the money that I've made, yeah. Okay, when it comes to Forex Trading, I would like you to correct me if I'm wrong. Most can just shy away because there's a lot of stories behind SCAM and also the whole probability of just seeing it as an illusion. So how did you go about it? How did you get into Forex Trading? Where there's a SCAM, it means there's a reality behind it. There's a working mechanism behind it. So somebody who comes to somebody who is a novice, they come with an idea too because they know you don't know the dynamics. So they might blindfold you and promise you maybe get rich quick kind of philosophy. They'll front it to you. I've also been SCAM before in terms of, like somebody says that we have this kind of a portal that you plug in then in six hours you'll get three times your money. I'm like, wow, that will be good because you see, but I go to London. Eventually I began to learn the disciplines of it, study trading by myself. I remember the eyes. Whenever you're signing up actually in Forex Trading, they tell you it's a high-risk market so you stand a chance to lose all your capital. So you have to understand exactly what are you doing, when to get in, when to get out, when not to trade and which amounts to risk for you to always be successful because if you don't have the understanding, the market can really square you out. We'll go much into details on risk and how to go about just getting an account on a Forex market. But we'll have to find out, right? So this is actually an investment. Yes, it's an investment. And people actually make money out of this. I can tell you probably 90% of wealthy people, they trade Forex, they may not tell you that but they're in Forex, banks, trade Forex. All right. So what type of background does one require to be part of or just engage in Forex Trading? I don't want to say you have to have the passion and Forex is not for the faint-hearted. It's not for the faint-hearted. So background, sometimes people used to say that you need to have a background in finance. I don't have any background in finance and most of the people, even somebody who's having a background in finance, when I look at them, if they've not studied Forex, I see them as somebody who does not really understand what Forex is. They cannot get into it at that stage because you've come from university, then you're able, you cannot say, tell me you've come from school, then you're ready to trade Forex. There's no, even if it's the Forex school, you have to first of all get into the dynamics of it, then you too mature into it. You have to be seasoned for you to be really fit to say that now you're profitable in Forex. Okay, so back in campus, I had friends. And most of the time, when I pass, maybe on a trading area, like you'll see they're very busy on their laptops. All I could see was just a black screen and just graphs looking like a heartbeat. In campus, wow. So I would like to find out, can someone or an individual just get self-taught through YouTube all about Forex trading? Or does one need to have like professionals, like go to school, have professional skills? I normally say nobody is self-taught because even if it's YouTube, it's somebody who's making the material, it's... Fair enough. So somebody is at least training you and also good if you can be able to find a mentor. But there's quite some material. Not everything that works for somebody is going to necessarily work for you. So it's good that wherever you learn, you get eventually to practice it yourself, then try to make changes because even the strategies I've also learned from people of what I operate with right now is something that eventually I had to study it and then change things to suit my study of the market. Now, eventually I was able even to build up robots. So normally you really find me now trading because I leave it to the robots to trade, then I just check my phone or whatever I am, then know when the robot has picked that trade if it's viable or I should like close it and such. So after watching anything or maybe you're taught, you have to work it out yourself and see does it suit you or it was that person's version of trading. You spoke about robots. Yes. What is this robot when it comes to for trading? It's just a lie to ask. You put the same dynamic that you're using in trading or the algorithm that you're using in trading. You feed them in a robot so that the robot can execute a trade based on the same decisions you make manually by your own analysis. So these are the conditions that define when to buy and when to sell. So you put those algorithms in the robot and the robot will be able to execute for you successfully. All right. Yes. Okay, so can Forex trading replace one's full-time job? It's possible to replace one's full-time job but you need at least to have, it's not something that you were there in one month and you say, oh, I think I'm successful at getting to quit everything and getting to Forex. You have to be at least, even if you're working now, you can do it maybe for a year and see you have a successful year consistently. Then you can make a decision based on that because in life they always risk. But even if you're a trader, you're not advised to stay on the computer like from morning to evening trading. You need to have a very, for example, I don't trade for more than two hours. I cannot stay on the computer for more than two hours. So you find me doing other things, moving around. But I remember that if I am able to achieve what I want to do in 30 minutes, I will quit because I've met my target so I'll move on to do other things. So you find me doing other things. They're rarely, very few people know that I trade for Forex. Even the people that my quintessence is on such because they will see me moving from around one place to another from meeting to meeting. We are working on other things and yet I just hide myself. I know this moment, give me 30 minutes, I will get my computer, finish what I'm doing, then get back on. So it's not something that you need to be seated on the computer down to dusk that year. Okay, so what you've said is it's flexible. It's flexible. It's flexible, yeah. So let's look at for someone who wants to start on Forex trading. What is Forex trading? How can you explain it in the easiest terms? Just break it down for us. And then how can they access the Forex market to gain, to get a trading account? Yes, Forex trading in simple terms is like you're observing the movement of asset and you expect to buy low and sell high, isn't it? It's just the same way in business where you make profit. It's like when something is, you can buy at this point expecting that your projection is going to go up then you sell high. So that's basically what Forex trading is. There's instrument, there's commodities, there are currency instruments, there's commodities, there are indices and all those kinds of assets on the Forex market. Then your other question was, the next question was? Oh, you were to explain it and actually tell us how one can actually get an account. Yes, so there are brokers who give you what we call the signals or those charts that you'll see in your friends. So you have an account, you have to find a broker that is regulated by CSEC. Broker that is regulated by CSEC. They are the dynamics to check for the efficiency in terms of withdrawals, deposit and withdrawals. You have to check for the efficiency in terms, you have to check for what we call spreads. The spreads need to be favorable to you and such. So when you find your favorable broker and then you're able now to have access, so you deposit your capital and based on your capital you're able to now use your capital to trade. Because as you said, in the Forex market, actually it's like $6 trillion per day moving in the Forex market. So even if you make $1 billion, you won't shake the market. Even if you make $1 billion in a day. Okay, so you've told our viewers to get access of a broker. How do they get access of a trade broker? Yes, I trade a broker. They are online. It's because trading, we do what we trade online. What individual trading is called retail. They are retail traders, but they are institutional trading also. So they are brokers all over. Actually some of them even don't know their names, but there are a few that I use. And just signing up online, you're able to provide your details there. You're able to sign up on account, isn't it? Provide your details, then you're able to deposit, then you're good to go to start trading. Just like any other business, you need a starting capital. What is the minimal amount of capital that one can start on Forex trading? It's based on what you're able to say that they are willing to risk this to get in the market. They are brokers who provide as a minimum, even as a minimum of $10 to deposit. And you can have as like most retail brokers, they give you a maximum of $1 million deposit per day. You see, so based on what you're able to get you, but also you need to understand what exactly, what is your trading? Like I used to have my own arguments. My argument used to be like when I did, if I want to become profitable because I want something that at the end of the month, I say it's rewarding to myself because if I start with 10,000 and in good business or in Forex, it's like when you're, you need to have real figures when you're targeting. Don't say like, as I said when I began, there's a time the first week I traded, I said this is a good place. There's huge monies moving in the market. I'm gonna milk the market. So I put in $100,000 and I built $100,000 to $600,000 for Monday. So this is your profit highlight story now, you're listening. So it's like I built $1,000 to $6,000 from Monday to $1,000 and then wiped it all out on Friday. So the thing is you need to understand the amount that you have make reasonable plan. Like don't target that you're going to make more than 10% per month. It's reasonable. Now to you, if you're saying about minimum, if you're having $100,000, that is 10,000 Kenyan shillings, will you say that if 10% is 1,000, are you comfortable with making 1,000 per month? You see, that's where the dynamics of what governs your decisions are to come from. All right. Yeah. Okay. It is not as easy as we thought. Yeah. So for the people back at home and who have grandiose years kind of mindset whether thinking like I can just get into forex trading in two weeks or a couple of months down the line, I'll be boiling, you know, my account will be fly. Yes. Yes. So what would be your advice for someone who is having this unrealistic learning comes when it comes to forex trading? Look for somebody who has an experience to tell you to really shape your perspective. The perspective is not bad. It's possible, it's doable, but the question is the risk that is involved also at the same time, you may not be there in the long run, isn't it? In forex, I utilize both traders have different opinions on different forex trading mechanisms. There's what is called binary options, then there's what is called the forex, the effects, the forex where you buy in terms of it closes in positions, binary closes in time. So you can do as little as a trade that last one minute and say my projection is the next one minute, this asset will go up. So there are dynamics that can inform you that you do probability, there's no probability, there's 100% probability. So you can have, you can take high probability, then take a position on that. Binary options give you in per minute in terms of what you're putting, it gives you in forms of percentage. So normally when I'm trading binary options, I trade when the market is at least 80% return on investment, so that if I place $10 in the next one minute I'm supposed to have, if it goes in my favor, I'm supposed to have $18 back, isn't it? So that's binary. And then there's forex now where you're closing on positions, you're doing a prediction, then it's gonna last, you're not going to close at a particular time, it's going to close on when it touches that position. So you put what is called stop loss, then take profit. With binary options is if you place $10, if it goes against me, I've lost that $10. If it goes for me and if it's 80% return on investment means I'm having $8 after one minute. So you see the dynamics are quite different. Yes, and are there high risks when it comes to binary solution? Because of what cases where people are complaining that they're actually losing way more money in binary? Yes, yes, binary has high risks. And that is the one that now people also expect to make a lot. That's where I've wiped my account several times because there are some moments when some things are happening in the market and if you're not so, if it catches you offside, you can easily wipe out without knowing, isn't it? So that's what binary is high risk, is high risk, high return. There's a possibility of doubling your account in a day. Yeah, yeah. All right, when it comes to currencies, currencies are sold in pairs, right? What are the most commonly traded currency pairs? The major currency, the major currency. What you call Euro, USD, GBP, USD, Euro, EuroCHF, EuroJPY, USD, JPY, and those major currencies from the big countries. Oh, I see. But mostly now, Euro, USD is like a major. We can't take our pair like probably Zimbabwe and Ken Shilling. I've never seen the Kenyan, I've tried to see the Kenyan Shilling trading on the Forex Market, I've not seen it. Maybe on the Nairobi Stock Exchange. So let's look at scum, scum stories. And that's why I was talking earlier when we started this conversation, and I was mentioning like, there's some section of Kenyans who shy away from Forex trading. They look at it as an illusion, because there's so many stories of scum that are actually there. So how does scum happen in Forex trading? The interfaces. I read Forex trading, I will tell you realities. And most of the times when people hear about Forex, they don't want the reality part, they want the scummer's story. A scummer will tell you that there's no risk involved. You, I guarantee, they tell you, I guarantee you 100% sure you get this money, you double your account. A real Forex trader, you tell them some figures, they tell you, no, I can't help you there, you're dreaming. And you see, you'll be telling this Forex story that somebody has told me that if I invest with them, I'll get this amount of money. And that's where many people have been scum, because when it comes to money, it has a way of activating us, because we always want more. But we need to understand there are disciplines involved. We'll eventually get more, but we need to grow slowly. We need to make decisions based on realities that will help us to have a consistency in growing. All right, so I'd like to find out, because we have long-term traders and we have the short-term traders, who are actually the late traders. So on long-term traders, such as the position traders, do they gather more returns compared to the short-term traders, such as the swing traders and the day traders? Not really. It's based on your trading. You see, when I'm saying short-term, it's the same kind. The long-term traders, it means they're more likely, whichever way, even if the market goes against them, they eventually return. The day traders, you're in tight positions, because it's dependent on what happens in that day. So it has to go for you in that day, for long-term traders, even if it goes against you today or even for a week, you're waiting for it eventually to return back, so eventually win in the long run. So it's the issue of what exactly, what are the semantics in terms that govern your balancing? So that if, what are you risking and what are you gaining? What ratios are you using? Some people use one-to-one. So somebody's like targeting 20 pips and risking 20 pips. Another person is targeting 100 pips, risking 100 pips. Another person is targeting 100 pips, risking 50 pips. So you have to understand that if I'm losing on 50 pips and I'm targeting 100 pips, there's no problem losing. So next time I get the 100 pips, I'll have recovered the 50 pips that I lost in the previous trade. And then you need to have a specializing in the specific asset that you want to trade, because not every asset behaves the same way. Though the basic dynamics of the market, everything behaves almost the same way. But you have to understand the specific currents that you're used in because you have to familiarize yourself with the movements. Okay, so I'll let you find out. How can one use leverage to get good returns when it comes to trading? Yeah, the leverage, the brokers give you leverage. The leverage helps you to open higher positions. But you know now also, when somebody is saying that I'm having a leverage of one to 100, it means for every dollar that you're having, the broker is giving you an open position, like you have like a hundred times there. But that only gives you like power in terms of the lot that you'll be able to open. But you need- And is there limited leverage? Yeah, yes, there's some, depending on the broker, there's some giving up to, like in the USA right now, they're trying to limit them to leverage of one to 50. You see? And then the brokers that you have one to one, one to 888, isn't it? One to 1,000, one to 500 as maximum and such. So depending on the broker that give you there, the leverage that is, yeah. So the higher the leverage is, you need to pick up because if it moves, if you take a huge lot size, it means just a slight movement against you can wipe out your account. So you need to really be sure of what you're doing when utilizing the leverage. Okay, speak about profits. Yes. Let's talk about profit. Are there strategies that one can acquire to ensure that you have consistent gains? Yes. No matter the numbers, no matter the random outcomes or numbers of trades, is there a strategy to ensure this constant? Yes, yes, yes. Strategies are involved. Forex is not gambling. Forex is a science. There's a science where everything you're seeing in the market has information on what has already passed in the market. The opposition that already passed in the market that begins to give you support and resistance. And most of the times you see that different trading semantics, the traders who are called reverse trend traders and then those traders that follow the trend. I've done both and eventually I came to like, I normally have this saying that don't try to fight the trend. The trend is your friend. So follow the trend, find the trend where it's moving, then join the trend. Then there's eventually be able to know when the trend is dying. There's a time when this trend is strong, then when the trend is dying. And regardless of what you do is an issue of probability. So when you're doing that, it's a this high probability dynamic. So when you're doing sorting, eventually when you run 10 trades, at least have seven trades that have gone in your favor. That would be a good. So you see in the net trade, eventually you're making net profit in terms of numbers. So don't risk much. You see sometimes when I'm starting to trade, most of the times when it's gone in my favor, I'm seeing some little cash, I close it. I say, let me just take it, let me not wait for you to take profit. But eventually when one trade goes against me, it means it wiped out the three of them. So I learned like, you need to maintain the discipline of the position. Do your technique analysis. Understand what informs your tech profit position, stop loss position and allow yourself to live by the rules that you're trading with. So and sometimes it's good. In trading, it is something good that you can do is like, if it has gone right deep into the money aspect, you can move the stop loss into a positive from the negative side to the positive side. So with that, you can go to sleep. So I know that even if it turns a buck, it will eventually hit stop loss, but in the money. So Mr. Daniel, what you're trying to say is that there's a probability and it's a fact that you can have people who actually trade like a pro. Yes, I trade like a pro. Okay, so let's look at some of the risks because you've talked about the fact that you might lose your money in this, just like any other business, right? So what are some of the risks that comes with forex trading? The risks that come with forex trading is it is human risks. The thing that informed, you need to do your technical analysis to understand to be informed. Are you doing an informed trading or are you just gambling? So when you're doing an informed trading, you're able to understand the risk, what is called money management. Don't risk more than 1% of your account or, you see, every person has what you want to risk determines what, when you want high risk, you want high gain, high risk, high reward. So at least by, if the weak has gone bad against you, don't lose 10% of your, you always come back and you make the money. But if you risk 100%, it means, if I put in 100% risk, it means, if it goes against me, I'm gonna wipe my account. If I put 1% risk, it doesn't matter whether if I've lost 1% of my account, I'm still in the business, you see? And I'm knowing that I'll eventually make it when I'm able to catch the, so those are the dynamics that are involved. You have to have a trading strategy, you have to have a money management strategy, then of course your emotions. How people lose money in forex is, you're making assumptions. For example, you put, say, my stop loss is this, or somebody says, I don't want to lose much, so they put a tight stop loss. So technically, what they made their prediction, how the market is supposed to go, is the right direction, but they put a strict stop loss. So it has to be an informed stop loss. So eventually it goes, touches the stop loss, but eventually it goes in their favor. You see, so all those things need to be in place so that you need to have an informed decision, put a reasonable stop loss so that sometimes the market can go against you, but eventually it picks and goes and takes profit. Then don't risk all the amount at a time, even if you are sure that this trade is this high probability, trade by the rules, and you'll be able to make money in the long run. But you're the one who was telling me, like the higher the risk you take, the higher the returns. But you see, anytime you're saying the higher the risk, it means you can also lose everything. I've lost, I've ever made 240,000, 270,000 in one minute, and I've ever lost 2 million in 10 minutes. Okay, so during these times of coronavirus, the pandemic, so many people have lost money in the stock market, so many business had to close, and employees had to be laid off because of employers couldn't sustain operation. Is Forex market a recession-proof activity? It's quite recession-proof. Actually, Forex traders made a lot of money during this. At the beginning of, I think, the first month of this corona issue, they started to have lockdowns in countries and such. Retail Forex traders actually made the volumes of around 50 billion dollars in that month alone. 50 billion dollars, you see. So, because of Forex trade, actually, traders, we take advantage of negative news. When the economy is shaking, traders are smiling because that time now, the directions are quite defined. When you say people lost money in stocks and such, you see, that's the direction that is. There's some asset I've never traded before, like I've never traded Bitcoin. But I remember, this one time, at 2 a.m., I checked my phone and I see the direction of Bitcoin. I said, I knew that surely this one, I know for sure. What direction are we looking at right now? Because you've seen the certain direction that you look at and you're like, this is the time to actually invest. Yes, directions are asset-based. So, it's like when you say Euro-USD, for example, right now, most assets that are against the USD, they are gaining, they are quite stronger because of the things happening in the US. So, Euro-USD is more on a buy trend. This USD, ZAR, ZAR is the South African run. It's been going down. So, I was checking this morning, so it consolidated, it's about to turn and such. So, its verus is asset-based in terms of what is happening with this versus this, yeah. All right. So, we keep on mentioning like, forex trading is like any other business and things can go wrong. Yes. Reminder, so losses are there. So, how can a trader manage temporary drawdowns? Temporary. Yes. Let's go with temporary. So, instant. You've traded, you've gone through a loss. How do you manage that? When you're talking about now money management and then the money management, then trading strategies. For instance, Consider this person has lost. Yes. Yes. If you have a strategy, because you need to have a strategy that is, when you're saying high probability, I mean, that strategy is a science by itself. It's something that it's informed. For instance, you're trading Euro-USD and saying by this dynamics, Euro-USD is supposed to go buy, isn't it? Then you buy, let's say now you lose that trade. Most likely it won't repeat the same structure three times. Like for example, you say buy, then eventually it consolidates, it turns back, then you know there's another downtrend, you see you join the trend, you see eventually you're able to recover the losses in the next trend. So once the drawdowns that are involved is, that's why you're saying you don't risk your entire account, because if you wipe out your account, it means when another time the market is in your favor, you may not be able to recuperate your drawdowns. But if you're using small risk, it means you still have money in your reserve that next time you're able to come back and you're able to recover your drawdowns. All right, very interesting there, very educative. So let's finalize by looking at the psychology of winning for traders. So how does a winning trader think? Because you said you were a winning trader, right? Yes, yes. So how does a winning trader think? A winning trader knows that I'm able to make money, but at the same time I can lose money. So, and when I lose, it's nothing strange to me. Losing is not something that is strange to me. So when I'm losing, a trader does not throw me off balance emotionally. You won't find me stressed and saying that you see the trade is going against me or I'm checking my phone and it's in the negative, we call it is in the reds, you say, but the account is bleeding, isn't it? So the winning trader, the stability of your emotions is supposed to be like my, I know I'm a trader and I know my art of trading. And even if things are looking this way, eventually I'll get into the money. So we understand that this is the semantics of the forex market. So even if it's going on the negative, eventually it's turned back to the positive. So I'm stabilizing my emotions because anytime you're not stabilizing your emotions, you begin to falter the rules that's supposed to govern your trading. And that's where many people get beaten. If the strategy that you're using works and you keep by the rules eventually by the end of the day, you win. But if you want to, if the market triggers your emotions, so that you need to put emotions aside and say, you're not trading by the emotions, I'm trading by the rules and eventually you make money in it. So let's consider a situation when a trade goes wrong. So how does one manage and overcome negative emotions? Because it can be devastating if you had invested a couple of thousand, maybe 500,000, then another investment comes through and you just lost everything. How do you deal with negative emotions? How to deal with negative emotions, utilize them and say, this is a learning lessons. Sometimes when a trader has lost money, we say, that is school fees. That is what you spend to learn something, isn't it? Yeah, that's what you spend to learn something. So turn your emotions to become positive in a way that because as I was starting, I said trading is not for the faint hearted. So the emotion that you use because you can get out of, like somebody can say, I tried this thing, it failed, you see, and but other people are succeeding in it. But every person that has a success, they have a story of how they became successful. So turn your emotions to become lessons to you and know that your emotions teach you that next time. You see, like how you're beaten. When you're beaten by something, there's an emotional impact to say that, this is a lesson that I took by the beating that I received in that particular kind of a situation. So I'm able, this time around, to maintain the discipline so that I may not get back into what I had before. All right, let's look at the situation whereby someone back at home has been with us in this particular conversation and has decided to actually take up this profession, very serious, and pursue it. How can this person program their mind? Totally program their mind that they're actually in this and they're here to win, yes. First of all is, what is your motivation to trade forex? Is it because you had, there's a lot of money moving in the forex market, or is it something that you're motivated to do because you feel you have a passion in those kind of direction, those dynamics work? So if you are motivated just because of you hear there's money in the forex market, it means you may be coming in gambling, but you need to come because of the, the same way you have a passion, somebody can say you have a passion in hotel industries, I have a passion in this, so you need to have a personal passion in the forex. So when you go in, of course they'll be learning, they'll be a learning curve that you need to take, put yourself in the discipline to learn. Of course every broker they provide what is called the demo accounts, you can be able to test what, test yourself to the demo account and then eventually you're able to put in the money. You're told most of the time, so when you find a trainer they tell you, try your strategies in the demo account over a period of time and see the success in your demo account, then try to replicate the same into the real cash. All right, so the demo account, it's a platform just to practice. It's a dummy money, yeah. Okay, all right. Yes. Daniel was stronger there. Yes. Forex trader, by profession. Yeah. You're good at it. Thank you. Thank you very much for creating time for us and just educating us on matters of patina, pertaining forex trading. I'd like you to use this opportunity and just let people catch up with you, the guys who are actually looking for to get into these like full-time as a profession or even part-time, right? Yes. So how can people reach out to you on social media? On social media you can get us on our Facebook page called, there's a Facebook page called Metron Forex. You can be able to get us there and then you'll be able to direct it to a, it's called a telegram channel, and then there's a website called MetronCapital.org. You'll be able to get us there. All right. One thing that I'm so sure of, Yes. I'll be looking for you. I need to, I need more lessons. You're welcome. Thank you very much. Thank you for that. So guys, back at home, make sure you follow up with Daniel, we're stronger there, forex trader. So I'd like you to head on to our social media account, that is at Y254 channel, that is on our Facebook. We have a question for you. And the question is, of course, good morning. How would you turn laundry services into a successful business? How would you turn laundry services into a successful business? The hashtag deals is the hashtag entrepreneurship Tuesday and hashtag why in the morning? You can find me at Michelle Ashira. So right now I'll be taking a musical break and we'll be right back with more of matters but in business.