Your money, my money

Forex trader Stancilous Chirape (24) from Northcliff is a man on a mission.

Forex is an acronym for foreign exchange, meaning the trading of currencies of different counties for profit.

Chirape worked as a sales consultant at a forex trading company for a few months. His zeal for success made him feel unfulfilled in the position; hence he applied for a broker position.

Only eight months after his appointment, he was awarded a broker of the year award.

“That award was an extensive eye-opener. I decided to immediately start making money for myself,” said Chirape.

In January last year, Chirape opened his own trading company. He is currently worth over R1 million, amassing this sum in less than three months of forex trading.

According to Chirape, forex trading is a great gamble. It is possible that after buying a certain currency or commodity the value drops and you lose a lot of money.

“I once lost R50 000 in 30 minutes; money is more of a tool for me. It is only money when it is in my bank account. If it is in the trading platform it is not mine because anything can happen,” he said.

Chirape added that when trading, it is of paramount importance to take into account the fundamental analysis which involves being up to date with news bulletins, both business and general, market analysis, interest rates and consumer confidence.

“The technical aspect is equally vital. This involves techniques that were developed by forex gurus such as the Fibonacci forex trading system. These show you the direction the market might take.”

Chirape has made more profits than losses since he came into the business.

“I don’t lose a lot of money because I use the stop loss facility which ensures I never lose more than I can afford”.

It is important not to trade one’s entire investment, Chirape said.