How Much Money Should I Need to Start Forex Trading in Philippines

A smart move to make as an adept Forex trader is figured out the capital needed before entering markets. Several traders go in with too much, or too less money and this works against their favor! Only when you have decided on your investments, you can pick a suitable strategy, the right timeframe, and design the overall structure of your trading career. So in a way, this step of affirming investments can be said to be one of the most crucial ones to make!
 

Here are 4 types of capital investment you can do as a Forex trader in the Philippines: 

How Much Money Exactly Needed to Start Forex Trading

 

1) Zero Capital: While this won't get you into an actual real-time trade, it will definitely provide a healthy learning experience. For beginners, learning is greater than earning. With $0, you can start a demo trading account. On this virtual platform, you can learn everything from devising Forex trading strategies to leveraging, all without experiencing any sort of hassle or risk. Several novices, in an aim to make money fast, start live-trading immediately, only to lose more than what they have! Get yourself a good demo account before going live.
 

2) Small Investments of $100-$200: This might seem like a very nominal sum, but with $100, you can generously partake in short-term trades by scalping or day trading. While short-term trades ironically require more focus than longer ones, they are incredibly rewarding! By performing these trades and winning, you can gradually increase your account size and enter the big leagues.
 

3) Medium Investments of $1000-$5000: Bigger Forex investments such as this are typically used while employing long-term Forex trading strategies. These trades have more speculating and less action. However, being long-term, the risks here are comparatively lesser than those in shorter trades. With a good trading strategy and a solid platform, you can start swing trading or position trading.
 

4) High Investments of More Than $50,000: Now that you have mastered the short and long timeframes, you can start investing big numbers by adding in leverage, and upping your trading threshold! With thousands of dollars in your account, you are free to trade across any timeframe and implement any strategy. At this point, when you trade well, you earn a hefty winning. However, losing with such immense capital will be disastrous. This is why when large Forex investments are involved, proper stop-loss usage is suggested, along with other sharp money management strategies.
 

The field of Forex trading in Philippines grows to show more improvement each day, with increasing profitability. Equipped with the right platform, you can dominate these markets! Sign up with WesternFX today, and we will guide you with all your investments needs. Irrespective of whether you have a small capital, or choose to trade large numbers, our world-class brokerage will assist you through trades good and bad, to ensure you emerge successfully! Call us today to know more.

How Risky is Forex Trading, and What Returns Can Be Expected?

Regarded as one of the riskiest ventures, Forex serves as stellar grounds for making profits today, but at a cost. Foreign exchange has been quick to top the charts and hold a trading value of $5 trillion. With several other markets to invest in, like stocks, contracts, options, etc., why do traders incline more towards Forex? Though the risks are high, currency trades birth tremendous profits. The journey is arduous, but the rewards are plenty!
 

As a beginner, knowing why FX trading is risky will be of immense help. 

Risk Factors in Forex Trading

Here are 4 reasons why currency exchange is incredibly risky:
 

1) Leveraged Environment: One of the most advantageous provisions, and also one of the riskiest, is leverage. In order to hold positions of high value, traders are provided with leverage by their brokers. This borrowed sum elevates your position, allowing you to trade more. However, when you lose a leveraged trade, you lose your invested capital and the borrowed money! This sum adds up to a substantial amount, making it a risky ordeal.
 

2) No Two Winners: Forex is a zero sum field. While markets like stocks allow multiple traders to reap benefits, Forex doesn't. For every person who wins a trade, someone must lose. This makes it very scary when you're on the straw's shorter end!
 

3) Volatile Domain: One minute a price goes up, the next minute it comes plummeting down - and all the while you won't be able to decide the perfect time to invest! Forex is a very volatile field, with little to no support to lean on. Its fast-paced online trading environment won't fit every trader. This requires immaculate focus and a strong grip over market movements and price volatilities!
 

4) Big Wins, Bigger Losses: The irony in Forex, is that to win big, you have to risk big; however, when you take a substantial risk, the chances of losing go up through the roof. While on one side, you can make good profits, the same trade can lead to bigger losses.
 

With an adept Forex broker by your side, victory will always be attainable. No matter how vicious a trade gets, WesternFX will always assist you! Call us today and avail our FX solutions. We will provide unparalleled brokerage, and ensure you come on top of Forex trading in the Philippines!