Foreign Exchange: Tips and Advices

[golbrb16]

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Claiming to be forex companies in the philippines are all fraud. Philippines doesn't yet approved any spot forex trading companies as this is a very complicated to establish and requires very large capitalization to set up.

So, just stay away from any of this "claiming to be"..

[ACQUA di GIOIA]

FOREX is super risky. U need to keep up with the news of the world but the returns are big if u know how to do it. It's not advisable though for a newbie investor /trader to "play" FoREX without deeper knowledge in that area. Why don't you play the local stock market first and get really good at it before jumping into FOREX? It's like saying na you can't go to Highschool without going to elementary school.

[Bricksand]

Hello guys,

I have a save up account (hard earned) and I wanted to invest in something worthy. I hear foreign exchange online is Okay. However, in order to do so, you need to learn how to read graphs and charts and should always be aware with how the market behaves. Of course, I find it relevant. So, after doing a quick research I have determined that I'm going to sign up with one of those platforms online that are notable for being able to provide traders with worthy techniques and etc.

My question is, are there people out there who are successful in foreign exchange online? If so, what type of platforms are you using? I found out that Etoro has a copy trader technique wherein you can simply copy what a ranked trader will do to his account. However, applying so (demo account) I do not see changes.

What platform would you guys like to recommend for a beginner like me?

PS: Though, i'd really like to invest in mutual fund however the ROI may seem to be a little longer compared to foreign exchange.

To mods: If you find the post irrelevant and insignificant, feel free to delete my post. Thanks.

TS I will only share based on my experience about Forex...I've been a Financial Analyst in a private company for less than 2 years and we normally trade in Forex. We usually looked for clients who can invest $10,000 initially and mind you that this is only a 1% of the total pool to be traded.

Anyway Forex is the fastest way to earn money but also the fastest way to put you in bankruptcy state. First and foremost you need to learn a lot of basic principles in trading - terminologies, trade techniques, etc. In short it is very challenging and difficult. Also there's only few companies who are really legit in trading into Forex.

Since you've mentioned that this is your hard earned money - if I may ask are you willing to risk everything if lucks may turn its back on you? If not, then Forex is not the right program for you.

How much of your total capital are you willing to risk? 20%, 50%, 80%? this is risk profiling. You need to know that as well.

Lastly I would suggest if you are still in your mid 30's go for Insurance instead could be variable or one time premium investment you'll get better returns on these programs than banks.

Good luck anyway.

[mckoy_slipstream]

Hello guys,

I have a save up account (hard earned) and I wanted to invest in something worthy. I hear foreign exchange online is Okay. However, in order to do so, you need to learn how to read graphs and charts and should always be aware with how the market behaves. Of course, I find it relevant. So, after doing a quick research I have determined that I'm going to sign up with one of those platforms online that are notable for being able to provide traders with worthy techniques and etc.

My question is, are there people out there who are successful in foreign exchange online? If so, what type of platforms are you using? I found out that Etoro has a copy trader technique wherein you can simply copy what a ranked trader will do to his account. However, applying so (demo account) I do not see changes.

What platform would you guys like to recommend for a beginner like me?

PS: Though, i'd really like to invest in mutual fund however the ROI may seem to be a little longer compared to foreign exchange.

To mods: If you find the post irrelevant and insignificant, feel free to delete my post. Thanks.

naa pa jud emphasis sa "hard earned".. my question is: how much of this hard earned money are you willing to lose, or can afford to lose? say you have P100,000. would it bother you if you put into forex like $500 (roughly 22k peso equivalent) and without expecting any return?

forex is risky. if you've read disclaimers of various fx brokers, they have a common statement, "trade only with the money you can afford to lose". it's risky, but it's doable, so to speak.

im a full time forex trader and i can say that i'm successful on this business. the first thing you need to know and get in your head, is that forex is not a get-rich-quick scheme. and never under-estimate the market. do not trade in expectation of profit, but rather trade to be a good trader. profit will come next.

demo trade ka muna, 2-3 months is okey. most traders like me uses Metatrader. i would not suggest etoro, they have flash based charting.

things to get familiar with:

- fundamentals -- what moves the market, who are the participants in this market, strong vs weak currencies, key economic data that affects price movement.
- technical - study raw price data rather than using indicators. study supply and demand or s&r, use higher timeframe muna beginning daily charts, weekly, monthly

i know may mga nakita kang ads like, "i earned $300 in just a few minutes", etc... don't take their word for it. most brokers encourage you to over trade and offer very high leverage.

while doing demo, pay attention muna tayo sa risk/reward, margin and leverage. go to School of Pipsology | Learn Forex Trading to read about it.
then when placing demo trades, sanayin natin sarili to always put a stop loss. use the exact $ amount that you're willing to put in sa live account para familiar ka sa risk/trade mo, and make sure it's not above 2%/trade.

start with 1-2 currency pair muna. say EURUSD and USDJPY. be familiar with economic data of these countries, and used that to build a bias.

before, i used to trade based on pure technical, until i realized na marami rin false signal sa daily. big players move the market, and they don't rely on technical. they assess strength and future prospect based on fundamentals. key economic data act as scorecards sa isang currency pair.

if pansin mo post ko, karamihan dyan encourages you to understand the risk. kasi yan ang important. good trading plans are built around solid understanding of risk elements. many people don't understand the risk kaya they just conclude na risky ang forex.

when going live. don't be too over confident. trade with really small lot size, like 1000 units muna. forex trading, or any other market trading, ang intial target mo is longevity. you will lose, that is part of trading. kaya dapat, small lot size muna, small risk until you get really comfortable with your trading style, then adjust lot size na naman.

[M.A.D.]

Scenario: 1 Currency Pair and 1 open position

Equity: $10000
Leverage: 1:100(a position with lot size 1 will be 1% margin)

Lot size: 1(100,000), .1(10000), .01(1000)

Margin: 100, 10, 1

Value per pip: 1, .1 .01

Free margin: 9900, 9990, 9999

When position is still 0 pips from trade/position entry.

Position is profitable/loss for 30 pips:

Profit: 30, 3.0, 0.3

Margin Left(if position goes against you for 30 pips)

Lotsize 1 >> 10000-100(0-30)=9870(exposure is 1.3%)
Lotsize .1 >> 10000-10(0-3)=9987(exposure is 0.13%)
Lotsize .01 >>10000-1(0-.3)=9999.87(exposure is 0.013%)

Margin Left(if position goes for you for 30 pips)

Lotsize 1 >> 10000+1(0+30)=10030
Lotsize .1 >> 10000+.1(0+30)=10003
Lotsize .01 >>10000+.01(0+30)=10000.3

You can add another loss of about a percentage of about 1% to 5% depending on spreads, commisions, slippage, lack of liquidity and latency problems.

As you can see a high lot size will give higher returns but will subject you to higher risk/exposure. Of course the scenario above assumes that the market has ideal conditions that suit you.

You would have to consider the time of the day when trading, the currency pairs to trade, its average tick volume depending on timeframe(moving averages are a great way to spot changes in the direction of the trend, the more number of moving averages where each moving average calculates a different timeframe and period will help filter noise and false signals the better).

You would also need to consider the type of news reports that will greatly influence a certain currency pair. Because of this it is important to find other currency pairs that are correlated or not correlated to each other to suit you strategies of trading. A good example would be EURUSD and USDCHF which are correlated to each other by a factor of almost -99%. This means if eurusd goes short then USDCHF goes long. This can lead to double your profits as well as double your losses.

THere are also some days of the week and some months where tick volume is low, each change in the market environment will need a different type of approach. The easiest way to trade is to trade a lower lot size and open a position in a higher timeframe this is easy and sure profits but most banks and hedge funds do not trade this way.

Using the common indicators as well as candle stick charts seems easy since everyone is capable of using them, including the large funds and the banks. For the banks however, doing it that way is disadvantageuos to them since everyone else would be doing it. What they do is set the conditions right and wait for the less experienced retail traders such as us and to take the bait and simply manipulate the price feeds to profit at the loss of the less experienced traders. A classic example of this is the false breakouts.

In addition to everything else mentioned above, you need to know the broker, the best setup for trading, the best internet connection, and a reliable way of funding and withdrawals of your money.

Finally, all that I have mentioned here still does not include the psychological aspect of trading. But based on my experience this pretty much sums up everything you will know about forex spot trading.

"It takes money to make money."

[archjsun]

I noticed nga ni mention ka about etoro. Share lng ko sa akoa experience. Nag invest ko sa etoro using their copy trader since nov last year and pag feb pjud ko nag sugod ug ginansya.
Nindot ila concept pero dapat mu learn ghapon ka to interpret sa gpang buhat sa mga traders or gurus man ila tawag ana didto. If mag basi lang ka saila gbutang nga returns kunuhay ma hurot jud imu kwarta.hehehe
Some of their gurus kay ma abot ug 200% in two months pero on the third month hurot ila account. Ang uban pud kay dagko kaayo ug increase pero daghan sila mga open trade nga tag 1 year na. Tied up imu capital ana if dli nila or nimu i close.
Last december ni invest ko sa mga high earning gurus nila and by jan na hurot ako g invest nila. Luckily for me gamay ra ako g invest nila. After ato nangita nko ug mga traders nga gamay ra sa ila account ang i gamit ug trade and consistent sila mu trade.
As of niy mga $620 na ako na invest tanan nya na abot na $685 ako account. If wala pko ni invest ato mga high risk traders abot na unta $750 ako account didto. Ako g buhat kay since nov nag invest ko more or less 100usd every month mao na abot ako total investment ug 620usd.
Wala pko nag palabi invest sa etoro kay wala pman gud ko nka suway withdraw didto.
Since nag earn nko ug around 8-10% a month sa ako gpang kopya nga trader, hopefully mka withdraw nko by sept or nov this year. Ang prob lng jud nko karn kay naa pko mga open trades gkan sa mga traders nga g kupya nko pag december. If interested jud ka mag trade i suggest basa ka sa babypips. Naa didto mga tutorials para maka sabot sad ka gamay sa mga gpang buhat sa mga traders.
Anyway if investment imu tuyo suggest ko invest nlang ug trust fund or mutual fund and invest using peso cost averaging. That way by the time mu retire ka dako njud imu investment. Search sad sa net sa book ni benjamin graham. The intelligent investor daghan ka makatonan ana. Naa sad audiobook sa youtube if tapolan ka basa ug book.

[ArtM]

Art, how much leverage is megatrends using? In forex a very high leverage can magnify your profits in very small currency movements. However, it cuts both ways. You can also wipe out your account if the bet is wrong.

@Diz417: Late na gyud akong reply...Bitaw, hing adto ko ug layong dapit mao wala nako kareply...
Then later on nagbasa ko sa mga gisuggest na mga sites about forex trading....unfortunately, wala ko muhatag ug time kay dili man lageh ako personally ang involved ani...

Anyway, akong gibalikan sa opis sa MEgatrend, ambot naa naman pod plano utrohon ang name...
And also, ang akoa lang na gusto ko ug mga documents na nag pamatood na naunsa pagkawala sa kuarta pero wala man gyud gihatag....
So, mao problema namo kay dili namo mapasabot sa tiya sa akong asawa ang nahitabo kay basin musamot ang iyang sakit sa kasingkasing nga sultihan namo nga ingon ana nahitabo...
Amo nalang ingnan nga ipaadto nalang niya personally with iyang mga pag umangkon...para sila mo scrutinize sa broker and hoping nga makit an pa nila...

At all, pasensiya na ug wala ko update ani nga threads....but I was reviewing it....I learn more...so, ako na gipang ingnan na sila ngadto.
Dako gyud nako pasalamat naa ning istorya.net..kay daghan lessons makuha....now, we are too careful na pod after 1 or 2 pitfalls na nasudlan.....

[vipmike]

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