The Forex market is one of the most stable systems. Many traders have already been able to become a part of this world and receive great benefits through an online trading platform. But others are wondering what could go wrong and what needs to be done to succeed.
Certain mistakes can prevent traders from achieving their investment goals.
Experts say that the most serious mistake of a novice user is too emotional approach. Experienced traders are able to cope with their feelings and make decisions based only on statistics and analytics. From this error, the second most important immediately follows – this is work without a clear plan. If you start working chaotically, then you can soon lose everything. A well-thought-out trading scheme is the first step on the way to success. It is better to think over a plan and strategy even before you make your first deal. So, let’s first figure out how to start forex trading in the Philippines.
Why trade forex in the Philippines?
The pandemic has significantly altered the dynamics of the market landscape, drawing in a growing number of individuals towards investments and trading activities. What makes Forex particularly appealing is its inherent flexibility, as it remains impervious to the upheavals of global crises. Within the Philippines, the regulatory environment leans towards a more lenient stance when it comes to market participants.
The market isn’t just expanding; it’s evolving into a progressively hazardous arena. In these circumstances, traders are increasingly gravitating towards the security provided by licensed brokers. These regulated brokers are those who have sought official authorization to conduct their operations within the Philippines.
The presence of this license will protect the trader from many fraudulent actions. It is understood that the license can always be revoked when the broker behaves badly and ceases to fulfill its obligations. Therefore, you should always take into account that the license is still in use and nothing has changed during this time. The Central Bank regulates the activities of professional participants in the securities market — brokers, dealers, forex dealers, managers, investment advisors, registrars, etc. This is the main regulator in the system, therefore it is considered the main sign of quality and safety.
Traders who decide to invest with an unregulated broker and face problems have very few remedies and may suffer significant financial losses. Just make sure that the broker has a license. As a rule, this information is public. Just check the site and find out all the data.
In addition, many traders prefer to open offshore accounts, adapting to economic challenges and opportunities. This is one way to reduce risks. Thus, you can protect yourself from a complete loss of investments.
Maximizing privacy is the main motive that encourages traders to go offshore. If the assets and their owners are separated from each other with the help of an offshore company, a stronger level of protection will be obtained for this type of asset as well.
By storing funds offshore, you can ease the burden of tax obligations established in the Philippines.
Describe Which Authority Oversees Forex Trading in the Philippines?
In the Philippines, there are laws that regulate the work of traders under the jurisdiction of the country. In such conditions, security becomes one of the key points that should be considered. So, it is important to choose trusted intermediaries and platforms.
MetaQuotes launched the MetaTrader 5 platform in 2010, indicating that this platform is particularly well suited for trading a variety of assets. MetaTrader 5 immediately became popular due to the fast execution of orders and a variety of interesting and useful functions.
Being one of the most popular in the world, the platform provides access to a variety of assets. It is localized into 31 languages, as traders from various countries trade on it. Key features include built-in fundamental and technical analysis tools, automated trading and the ability to copy trades.
Here are just some of the advantages of the MetaTrader 5 platform:
- Access to a variety of assets: stocks, indices, commodities, currencies, etc.;
- Various types of orders and systems (for example, hedging);
- the ability to open more than 100 charts with 21 periods at the same time;
- More than 80 different technical indicators, market news and economic calendar;
- Signals and copying trades;
- Access from a computer and mobile device, the ability to trade anywhere and anytime;
- The MetaTrader store with more than 2500 algorithms, strategies and indicators;
- The ability to use the MQL5 language for programming strategies and rent VPS (virtual servers).
Step-by-Step Manual for Starting Forex Trading in the Philippines
There are 4 basic steps that everyone who wants to start should take. The sequence of these steps is not as important as the content, which you should take with all responsibility and attention.
- The first step is to find the right forex broker that will be your main tool in trading. You can have a great strategy, good technical analysis or unique intuition, but you will still fail if you choose a bad broker. If you make the right choice, you will be able to get everything you need quickly.
- The second step is learning the basics. Before moving on to more skilled skills, you should understand the basics. Without this, you will not be able to build your own strategy or plan. There is a huge amount of information on the Web right now. But choose proven sources.
- The third step is training. It is unlike any other training you have encountered in your life. The Forex market is chaotic, training is also – there are no established rules here, as well as laws for all times, everything is unstable and dynamic. Therefore, in order to stay afloat, you must constantly and regularly study and learn something new about the market.
- The fourth crucial step entails crafting your unique trading strategies. During your learning phase, you may find comfort in established strategies and even rely on forex signals. Nevertheless, the ultimate key to achieving trading success lies in the creation of your distinctive trading strategy.
For investors with a keen grasp of financial market intricacies and a willingness to embrace risk, Forex represents a promising avenue for supplementing their income. Within this dynamic arena, individuals possess the potential to swiftly augment their initial capital, albeit not without acknowledging the concomitant perils. By delving into the nuances of Forex trading in the Philippines, one can effectively mitigate these risks and enhance their prospects of achieving success.