So, the platform has to be easy to use. If questions are not answered in a timely fashion and issues are not solved for weeks, do not trade with that broker. You just have to survive the ups and downs of price by money management. It also has the less volatility when it comes to pip movement.
General Regulation & Philippines Regulation
So, a Philippino trader should feel safe with a BSP regulated broker. If you live in the Philippines, want to trade and think you have found a decent broker, you also need to check what kind of trading platform and software the broker offers you. The trading platform will be your main tool you work with.
If it is bad, it does not matter how good you are in trading or how good your trading system is, you can make a bad decision due to not knowing what icon or button you need to push and accidentally make a wrong trade which will cause you to lose money.
So, the platform has to be easy to use. Each button and function on the platform should be understood easily by you. You should also be able to open as many charts on it as you need for analysis, both technical and fundamental.
Back testing function should also be there, so that you know whether the strategy or code you want to use work well or not.
Finally, you should be able to copy other traders who might be more successful than you. So the copy function should be there. One of the best platforms that is downloadable is Metatrader and any good broker should offer you that. All traders know how commissions can take a huge bite off their profits and they search for brokers who offer the lowest commissions on transactions. Contrary to stock brokers, Forex brokers typically do not charge commissions, but they make money on spreads.
A spread is the difference between buy and sell or bid and ask price. Spreads tend to be fixed and variable. Brokers who offer fixed spreads will charge from pips on major currency pairs and around on currency crosses.
Those who operate with variable spreads will typically offer much smaller spreads. On majors variable spreads can be 0.
However, you should remember that these spreads are under normal market conditions. When markets react to some unexpected fundamental event and prices start jumping up and down, brokers extend those variable spreads and they can become 10 or even 50 times bigger than usually.
Of course, this will typically last just a few minutes till markets calm down, but you still have to know when to avoid opening or keeping positions open. A lot of brokers offer different levels of accounts that depend on size of capital you have and two hundred dollars is not too little to start with. Traders who have bigger capital than 10k can open a standard account and trade standard lots. One standard lot size is k position. Of course, you had better have a bigger amount thank 50k to trade standard lots, just to ensure you control your risk.
Before you open an account with a broker be sure to visit section on their website where customer service is. Ask as many questions as you want to find out how they respond and how they treat your problem. You should expect fast replies, quick solutions and a polite way of dealing with your issues. If questions are not answered in a timely fashion and issues are not solved for weeks, do not trade with that broker. Additional services that a broker provides may seem unnecessary and unimportant, but that is not the case.
If a broker cares about their traders they will do as much as they can to improve the quality of their services. Forex is a complex market and you need to find out about it as much as you can, so lots of resources about that should be available with the broker. A broker will typically employ experts who do technical and fundamental analysis, market recaps, news interpretation and etc.
The more material that is available, the better. Successful trading is not just about implementation of your excellent trading strategy, but also trading with confidence and peace of mind with the broker that is regulated and who cares about his customers. The article indicated specific steps that you need to make in choosing a reliable broker.
Review them, do your own research and only then open an account with the broker that you have tested yourself. Or to save time simply pick from our list of regulated and recommended brokers below. You should be familiar on how to read these graphs. One of the most popular kind of graph is the one invented by the japanese to trade things in the ancient times.
They call it the candle sticks. Candle sticks are well known graph in the forex trading industry and we suggest you also read on that for starters. Forex philippines is not any different. Of course, there are advantages though in buying your own currency paired with another currency. You know the local news and news may affect the forex market. Being in the same country as the currency you are trading will have huge advantage. I admit that I have been guilty of the title Forex Trading Gambler.
During my first few years and quite some of the time, I trade forex because of the adrenaline rush and the thought of easy money. I get excited on every high risk trade that turns out to be a winner. It was my high. I was addicted to the feeling. He just wants to experience that same high that got him hooked. Then comes the realization, I continue to lose and I kept increasing my trading size. Only to burn even faster.
With that good feeling that you miss, you just want to trade more and more, larger and larger, only to experience the bottom faster. Trading this way will not work. It is not about the feeling in trading. How much money you made or how much you lost should not be the basis of trading.
The more I trade, the more I realize that. For me, being right matters most. Its all about the odds and probabilities. Its all about timed aggression and patience.
A little bit of luck may help. Because even though luck is involved, there is a reason why the final table have so many familiar faces. It is a different kind of feeling that the thrill of winning big. Being right is better than breaking the bank. This is not a sprint, its a marathon. Trading larger size may give you great gains, but also great drawdown, and greater risk to go bankrupt.
What we want is to make the right decisions each and every time. The more I read about the stories of successful traders, the more I realize that trading is much like poker. Some people treat it as gambling, some treat it like a sport, a mental sport like chess. Some play poker just to have fun, feel the rush, some play poker as a profession, as a business. We should approach forex trading the same way.
The forex market is going stale as we reach the end of the year. Many investors are on vacation so the market is not liquid enough to be exciting. Primary strategy is to produce passive income. Not sure for now, but the journey thus far have been so exciting. In forex, you can enter or exit anytime, very liquid. And liquidity is very very good. I am also trading at no risk.
Which means, the money that I have in my forex account are the money that I earned trading. I already withdrew the money, initially deposited into my account and thus, trading with no risk at all. This year, I also ventured into stocks and realized that its a lot different than trading forex. So I decided to change my strategy with stocks and focused on passive income generation. In which I am very much enjoying.
I realized that forex trading is a probabilities game. You can not predict what will happen next. A good forex trading system is not a system that could predict the next move of the market, because there is no such thing.
The time I realized this, my trading just improved. I learned to accept the risk before entering the trade. The reward may be small, but small steps before you can run. And it have proven to be profitable. The best way to trade forex is to trade defensively until the next big trend comes. Always be in the market so you can be in the position when the trend starts.
You just have to survive the ups and downs of price by money management. And if you caught yourself a big trend, double, triple, quadruple, quintuple up your positions until you are stopped. I also realized that day trading is stressful. So I switched to swing trading daily. I forgotten my first reason in trading forex. It is to be free. There is no easy and fast money. The only thing you can find there is stress and a lot of time spent, staring at a computer.
That is not the life I want. I want to be free. With a lot of free time and let my money work for me, not the other way around. Its a great great feeling. This is the thing I learned while learning stock investing. And I think it goes very well with trading in forex. I used to hear a lot of people saying this and I have never really understand the deeper meaning in it. A lot of traders have been saying that to never trade the news. And I have been a victim of greed over the past week.
I try to anticipate news releases and have been wrong many times in doing so. And decided to trade only currency pairs that are not in the risk of news.
It might not actually be a late time to enter but you get my point. Never trade the news. Go to currency pairs where there are no risk of news affecting it.
Or in the words of stock investors, invest in obscure companies that are being ignored by professionals and traders. Keep your stop losses tight. On a weekly note for this pair, its more of a sign to go long. That position is less risky because you have BoJ on your side. Forex trading is never easy… What is easy anyway? Picking your nose perhaps? There are many traders that make consistent profits with rather simple and old strategies.
What do you think? Do you trade mondays? What is Forex Trading Forex Trading is a kind of short term investing in currency or foreign exchange. How much money can you earn in Forex Trading? How to get started in Forex Trading 1.