Ken Githaiga is the founder of the Jay Forex Trading School where he trains aspiring forex traders on how to become better forex traders.
His journey in dealing with forex is one best described as ‘the amateur who turned up every day to become the pro’.
He has been in the business since he left college in 2008. Since then he has been determined to be one of the most successful traders in Kenya.
Here is his story as told by YEA Kenya:
I started Forex in December 2008. At that time I had just left college and was looking for an opportunity to make money, but I was not really interested in an office job. I had this feeling that one can make money online but I didn’t have an idea how.
Like most of us have done, I typed the words “make money online” on Google and that’s how my journey started. I got all online money-making ideas and I read almost everything I could come across on the topic: SEO, Affiliate marketing, CPAs, etc.
I learned how to trade mostly by reading articles online on Forex Factory and watching videos on YouTube. I’ve met many Kenyan Forex traders but none of them really taught me how they do it.
I made very many trading mistakes at the beginning. This cost me a lot of money when I was getting started, but looking back I’m glad I made those mistakes because that’s when I learned the most important lessons. In fact, one of the reasons I decided to train people is so that they don’t repeat those mistakes.
Trading and working online in general has given me a lot of freedom to live life on my own terms. I don’t need to rely on anyone in order to earn a living. I have the freedom to move to any part of the world, without having to worry about my job. I also have the freedom to choose when to work, how to work, whom to work with, and also the freedom to choose what to wear.
Forex does not take much of my time. I look at the charts for 5 minutes at 7 am, 11 am, 3 pm, 7 pm and 11 pm. I’ll also look at the charts at 3 am if I’ll be awake at that time. That’s a total of 30 minutes or less per day. In fact, I spend more time taking a tea break than I spend ‘working’ on Forex. I am a trained accountant, so from time to time, I work on accounting or auditing projects for clients.
Actually, you can’t tell that I’m a Forex trader by looking at my life. I usually wake up at 6.45 a.m, check the 7a.m chart candle while still in bed. If there’s an opportunity to trade, I’ll open the trade, set my targets and go on with my other businesses for the day. I’ll then check the charts again at 11 am, 3 pm and 7 pm as I had stated before. If I’m in the middle of an important meeting, I can still check the charts on my phone.
Just like playing chess, 99% of Forex trading happens in the mind. It takes only a few seconds to move the pieces (i.e, clicking the ‘buy’ or ‘sell’ button). It doesn’t really take one’s time when you know what you’re doing.
I’d say a successful trader is one who doesn’t lose sleep after he has had a bad trading week. One who keeps low draw-downs and has full confidence in his trading system in a way that he can have ten or even twenty losses in a row and still continue using the same strategy, which eventually makes him a nice profit. A trader who doesn’t think making 1000 pips in one day is a big deal. To me, that’s a successful Forex trader.
I’ve tested out both trading styles (fundamental analysis and technical analysis). Technical analysis is the one that gives me the best results. I use only one indicator (The exponential moving average) with candlesticks on the four-hour chart. It’s the same method that I share with anyone who’s learning Forex from me.
Forex itself is not risky. It’s the leverage that people put on their Forex accounts that makes the trades risky. A trader who uses a 1:500 leverage on his account will see Forex as a risky, get rich quick program because it’ll take very few pips to double (or lose all of) his money, but someone trading on 1:10 leverage will see it as a rather safe, slow but sure way of building a stable online business.
Most of the time, traders get into the market with the unrealistic expectation that they’ll get rich overnight. They over-leverage the account in hopes that they’ll make a ‘killing’ by simply predicting which direction the price will go. The biggest mistake that traders make is over-leveraging their trading accounts, followed by traders’ failure to stick to one system. Many Forex traders will dump a system after a few losses and move on to search for another ‘holy grail’ system, which they’ll still dump after a number of losses
My advice to new Forex Traders is to treat Forex like any other business and not like a get-rich-quick scheme. They should ignore all the internet noise about traders and marketers who have strategies to make millions overnight. Focus on Forex education first by reading as many books as possible because the more a newbie understands the market cycles, the easier it’ll be to make profits.
When starting out, DON’T take a loan to begin your trades. I advise my students to lower their expectations of the profits they’ll make in the first few months. The fact is, it’s almost impossible to make good or any profits as a beginner. The good news is that you cannot be a beginner forever. You’ll eventually move out of that stage and the profits will start tickling in and keep growing from there.
Start off with a demo account and only move to a live account after you’ve safely doubled your demo account. If a learner wishes to do otherwise, it could be a good idea provided they don’t mind losing money on trial and error methods. Most people’s fear of losing money is greater than the joy of making profits.
Starting out straight with a live account has its advantages, like overcoming the fear of monitoring a live account. However, I feel like it causes more harm than good. It’s better to test out a system on a demo account and then trade live after you’ve identified all its weak points on a demo account.
I started training others on Forex when I began to realize consistent profits. The flexible schedule that Forex trading provides gave me quite some free time, some of which I use to teach people my trading methods. It gives me great joy to see other people, especially fellow Kenyans, making profits from the market.