I thought this day would never come. In recent years, the financial markets have observed a higher propensity for crypto investments and literacy than any other financial segment. The rise and hype have been crazy. However, the people who enjoy more experience in trading know that a ton of money is to be made in other markets. The one market we shall discuss in this piece will be the Forex market and how a complete beginner can start trading in the Philippines.
Trading can be advantageous. Many people we watch all over the internet who have “made it” are solely there because of intelligent choices. These choices apply to their financial decisions as well. A significant cause of concern for all traders and investors is taxes and returns. Many questions would come to your mind: is Forex taxable in the Philippines, or how much is the tax? Relax. Let’s learn about starting Forex trading, and we’ll come to other obligations later.
Forex Trading, in simple and clear words is purchasing and selling of different currencies. At a predetermined price, buyers and sellers exchange currencies. The objective of forex trading is to turn a profit, just like any other type of investing. When you swap currencies, you wager that one will appreciate in value while the other will depreciate. In this market, this is how you generate money.
Trading in Forex often occurs over the counter (OTC) between two entities. The forex market is regulated and operated by a number of institutions, integrated at some level across significant trading platforms. Notable locations are London, New York, Sydney, and Tokyo. Forex trading is possible around-the-clock because there is no specific location for the central forex market.
Before we step into the technicalities of the Forex market, it is essential to let you know about the benefits, features, and value it can bring to your portfolio. It will also become crystal clear to you in the succeeding part of this article regarding its importance in providing you with an impetus to achieve financial stability.
You can dangle your toes in overseas markets by trading Forex. By hedging against local economic downturns using foreign currencies, investing in other currencies helps you reduce your risk. Markets go through ups and downs and expect other worldwide economies to be stronger when the Philippine economy is weak, and vice versa. You can withstand fluctuations in your home market by making foreign exchange investments.
The Forex Exchange is operates round the clock, 5 days a week, unlike the stock market, which only accepts buy and sell orders from 9:30 AM to 3 PM. The flexibility allows people who can’t trade during business hours to do so after work.
Furthermore, because you are trading foreign currencies and thus trading in a worldwide market, you can take advantage of the time of day (or night). According to Daily FX, a forex trading news and analysis blog, the optimum time to trade European currency pairs is during their “off” hours. The “off” hours for forex trading in the Philippines are the country’s typical working hours, which are 2:00 AM to 6:00 PM.
Automated tactics available on forex trading platforms let you reduce risk without looking at your screen. The built-in methods such as the stop loss and take profit orders are examples of it.
What Do You Need to Start?
Not much. Millions of pesos are not required to begin FX trading in the Philippines, and you are free, to start with, any sum, even as low as PHP 5,000. Once you’re more at ease, you can then increase your fund. But some online forex brokers demand a minimum deposit, which can be between PHP 5,000 and PHP 500,000.
How to Trade?
Trading in the Philippines is not rocket science, and probably one of the most accessible platforms to get you started.
Follow this simple blueprint, and let’s go:
1. Look for a forex trading platform that accepts traders from the Philippines.
2. Register for a broker account. Fund your account, please. The majority of internet brokers accept electronic fund transfers.
3. Download the mobile app if your preferred broker offers forex trading on the go.
4. Make trades, and make money.
These four steps summarize what you need to know to start Forex trading.
Strategies for You to Succeed
Following the four procedures explained in the preceding section, you will have a funded margin account with a broker that enables you to trade Forex from the Philippines. To boost your chances of success, you should probably create a trading technique that you may include in your trading plan.
It is the practice of trading with a large volume and concise time frame to quickly enter and exit the market to gain a few nickels and dimes at a time. If you’d like, you can carry out this procedure multiple times each day.
2. Day trading
Day trading is the practice of entering and quitting trades during a single trading session to avoid the added risk associated with holding positions overnight. Technical analysis is frequently used to inform trading decisions; thus, understanding past trends is essential if you want to make wise choices.
3. Fundamental Analysis
Like stock trading, fundamental research gives you the knowledge you need to choose a good currency pair. By keeping up with news stories on political and economic topics, you can get a sense of the currency’s value and how it will perform in the near future.
4. Technical Analysis
Future performance cannot be fully predicted by past performance. However, you can utilize historical data to estimate future performance. This also holds true for FX trading in the Philippines. Whether choosing when to trade currencies, statistical and numerical information gleaned from examining the trends and patterns of currency pairs is helpful. You can make a judgment based on data with the help of technical analysis.
Knowing more about forex trading in the Philippines can help determine if investing here is good for you. You can open practice and live accounts on various online trading platforms, where you can begin trading up to 30 currency pairs. Before risking your hard-earned money, learn more about forex trading in the Philippines; otherwise, you risk taking on more than you can handle.