FOREX Trading in Sri Lanka and How Even Beginners Can Profit

FOREX trading in Sri Lanka is surrounded by mystery. For starters there are confusions about its legality. Then there are things like “The Sakvithi Scam” which naturally makes people reluctant to invest in anything. And then there’s this misconception that it’s gambling and all based on luck. Those three and many other factors make Sri Lankans look at FOREX trading with mistrust.

What is FOREX Trading ?

In very simple terms FOREX trading is exchanging one currency for another. And FOREX stand for Foreign Exchange where all the exchanges are happening. But unlike a stock market there is no central marketplace. Everything is done electronically via computer networks. It’s the worlds largest financial market with over 2000 billion dollars exchanged everyday. So now its your turn to have a slice of the pie.

Is FOREX Trading Risky ?

Yes it is risky just like buying stocks is risky. When you buy stocks there is no guarantee that they will go higher. But you or your stock broker will minimize that risk by analyzing past data, performance of the company etc. Similarly in Forex trading you can minimize your risks by looking at past trends, setting stop losses etc.

So what about all those stories about people losing all their money in minutes. Yes you can lose all your money in minutes if you trade foolishly using high leverages. And greedy people usually lose their money this way. It is important to keep in mind that Forex trading is not a get rich quick scheme. You need to knowledgeable, disciplined, patient and intelligent. If you don’t have these qualities I guess you can stop reading the article now and find something better to do.

FOREX quote: When you combine greed with leverage, you have a disaster

The worst enemy of a FOREX trader is a combination of greed and leverage

How Beginners with No Knowledge Can Profit from FOREX

Up to now I was yapping about how you need to be knowledgeable to do FOREX trading. And now all of a sudden I’m talking about how you  can profit with absolutely no knowledge. Don’t worry, I’m not going crazy.

Now you can start making money from Forex trading with zero knowledge thanks to a method called copy trading. The idea is so simple it’s a miracle this wasn’t introduced long ago.

What you do is instead of learning all the finer details of Forex trading copy the Forex traders who are already successful. These are traders who’ve spent years studying the currencies and are already making money from trading. So obviously you have a higher chance of making money.

Getting Started with Copy Trading

I’m using eToro as my Forex broker so the following examples/steps are how it works on eToro. But most other platforms offer very similar methods.

1. Register with eToro

Obviously you need this to start trading. As mentioned I use eToro but if you have preferred platform you can use that. Click here to register with eToro >>

2. Fund your account

You need money to trade so add some money to your account by clicking the “Fund Your Account” button at the top right. There are quite few options available to you. I personally use Skrill because unlike PayPal it allows you to receive money as well.

3. Go to Openbook

This is the social trading platform of eToro. This is where you’ll find the top traders. Your eToro user name and password works here so log in using those credentials.

4. Click the “People” link in the top left corner

You should see a screen which says “Discover People”. The default search is fine so just click the “Search” button and you should see a screen similar to the one below.

People search results in eToro

How people search is displayed in eToro

Sort the list by number of copiers. You can do this by clicking on the copiers column header. If lots of people are following someone it’s usually a sign of consistent performance. Click on any profile link to see the full profile.

5. Start Following and Make Money

Once you click on the profile link you should go to a page similar to the one below. In that profile click the “Copy” button to the bottom left. It will show you a dialog box asking how much to allocate for this investor. As a practice allocate at most about 20% of your funds to one copy trader.

An eToro person profile

Click the blue button at the bottom to copy a trader

I hope now you realize why I said you can make money with Forex trading with knowing absolutely nothing about currencies. Do keep in mind that copying successful traders doesn’t guarantee success or profits. It just minimizes the risk because these are professional traders who study currencies for a living.

You might wonder why these traders are so generous with their knowledge, well for starters they are paid by the Forex brokers. And more copiers they have more money they make. And why are brokers doing this? Because it encourages trading and when more people trade they make more money.

FOREX Trading in Sri Lanka

FOREX Trading in Sri Lanka

Choosing a FOREX Broker

In the previous section about copy trading I selected eToro as my Forex broker. So I thought I should explain why I chose eToro. To do Forex trading in Sri Lanka you need to deposit and withdraw money. Because eToro has multiple depositing and withdrawing methods this is not a problem. For example if the Forex broker only allows PayPal this could and will be a problem for Sri Lanka.

The next thing is it’s easy of use. Everything is done online so you have access from anywhere in the world. You get tutorials to learn about trading, constant and timely notification about trading opportunities and bonuses when depositing money. Plus you have the Openbook social platform where you can socialize with successful traders and copy them. And this allows you to profit from Forex without knowing absolutely nothing about Forex.

If you think any other Forex broker offer better terms be sure to let me know in the comments. In the meantime join eToro >>

Free Resource to Learn FOREX Trading

Although you can immediately start making money with Forex thanks to copy trader the profits will be small unless you invest a large amount. So you need to learn the art of Forex trading to really make profit from it. It’s not easy but you don’t need to be super smart either. One of the leading guides recognized across the industry is the Babypips Forex guide. It’s long but very comprehensive. Make sure to go through it carefully. There is no rush because you’re already making some income via copy trader.

While going through the guide try your hand at Forex using the practice account provided to you by eToro or whatever Forex broker you choose. This way you’ll be familiar with the workings of the system when you’re reader to trade for real.

FOREX Trading in Sri Lanka is Possible and Profitable

What it isn’t is an risk free method to make lots of money in quick time. It’s true some lucky people can make a lot of money quickly but that is not sustainable. Get started with copy trader because you’ll be earning some money ( how much depends on what you invest ). Then take the time to learn about Forex trading and truly start making profit from it.

Comments

  1. loungepuppy says

    Interesting info. If you don't mind me asking what has being your biggest loss so far(in monatary terms) I am very new to this so I am skeptical. Just started going through all the study material.

  2. bbrian017 says

    I’ve never tried Forex trading but I’ll be the first to admit I never know what a quality Forex article is or what a spam one is. The only reason I know this article is quality is because it’s on your blog.

    I’ve never done futures,currency or any other form. I don’t plan on it either I’m to afraid to lose my money haha!

    • Nishadha says

      Actually learning the basics of FOREX trading is not that hard, its applying that knowledge with your experience that decides whether you will be a successful trader or not.

  3. PRIYANTHA says

    I like to trade forex trading and I need some help.IHAVENT MORE MONY ALSO LOKING FOR FOREX SINHALA BOOKS.YOU VERY EXPERIANCE NOW EARN MONY LOT SHARE YOUR SKILL WITH ME THANKS. PRIYANTHA
    0718207263

  4. Weerasinghe says

    I have a best system for forex trading. But I haven’t enough money for invest. If anyone can help me for improve these things I can share my skills and other things I have. this is not etoro. but this forex system can earn over Rs200,000/= per month. Contact me 0775333273

  5. Indika says

    Just check with Central Bank and they said forex trading by individuals in Sri Lanka is not legal.
    Please explain the real situation regarding forex trading

  6. mihitha says

    heyy i down loaded the softwear etoro but as u said thre arent any virtual money , so um lost in this softwear tring to understand this , plz hlp ..

    • Nishadha says

      @Ravi, I guess you are saying this because you invested money in FOREX and lost. FOREX does involve risks but it can never be compared to a casino where everything is based on luck. If you study the trends and take time to learn about trading you can succeed with FOREX. Make use of mechanisms like stop loss margins and make good decisions without getting too greedy, then you will succeed.

  7. kumudu says

    Hi,

    how is the legal assurance and guarantee for our invested money to brokers.is this legal in sri lanka? and does it taxable?

    • Nishadha says

      @Kumudu, What do you mean by guarantee ? If you invest some money in it then you can always get them anytime you want. Whether your amount increases or decreases depends on how you trade.

      • kumudu says

        ok,

        as you say , what is the assurance for our money payments.how can i know detail about that?

      • Nishadha says

        @kumudu, it depends on your broker , read the reviews and check if they have a history of not paying on time etc. Usually all top brokers allow you the ability to withdraw money at any time and they pay on time.

    • Nishadha says

      @Ravi, True, only about 10% of FOREX dealers actually make profit, its up to you to get into that 10%, learn about trading and apply the techniques and then you will be in that 10% :-) , however that doesn’t make it a scam ;)

  8. udayanga says

    hi,
    I m interested on Forex and went through couple of articles regarding the same, but i think sri lankan having problem about money transaction (specially transfer in SL). PayPal doesn’t support it. pls update about the options available on this topic

    • Nishadha says

      @Udayanga, Depending on your broker there are plenty of payment options other than PayPal. You can use credit card, direct money transfer, AlertPay, debit cards etc as well.

  9. muthunayake says

    I am with Forex long time , this is one souse of my income, I am thinking to teach this to our guys but it is difficult in open web recourse it has some issue with regulation of Sri lanka. because this is investment and it use as Casino double sward. If rich panic monkey try to use it end of the day he will become poor bugger. on the other hand you can earn decent money while working

    myself I am an Engineer , I work hard with timeless ,endless journey to current situation , if you need assistance please mail me muthunayake@gmail.com

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