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How I Started Trading Forex as a Newbie

How I Started Trading Forex as a Newbie

This blogpost is divided into two parts: One, basics. Two, my personal reflections. Let’s start off with the basics!

BASICS

Do you want to learn how to trade forex? Start here!

Sharing with you how I started forex trading as a newbie. If you guys all know, I’ve been trading stocks for years. When I funded a forex account some time ago, my first impression was it is simply a buy and hold of currencies (remember when your people say, “tataas ‘yang dollar, ‘wag mo muna ipapalit.”) So I thought forex is just all about it.

What is Forex?

forex

Forex is simply an exchange of currencies. How do you interpret USD/PHP? For 1 unit of USD (or simply for $1) = Php48.

Forex trading vs Stocks trading

For me, there shouldn’t be competition between the two. There are a lot of differences between forex and stocks trading:

  • In stocks, you pick companies. In forex, you trade currencies, commodities, indices.
  • Stocks or equities trading is available in limited hours 5 days a week. In forex, it is a 24/7 market in 5 days.
  • Can forex be “hyped” just like in stocks? The volume of transactions is gargantuan that it would take market movers (such as central banks and global news) to create an impact on the direction of a currency. It would definitely be difficult to “hype” a pair so to speak.

Demo or Live account?

A lot of forex traders and teachers would recommend that you practice trading in simulated environment. Some suggest you need at least 3-6 months worth of practice before you can trade live. This would probably be one of my mistakes as I headed on trading live. If I could turn back time, I would probably have tried trading demo first.

What is the difference between demo trading and actual trading?

First of all, your capital in demo could really be big – you can trade a million dollars! Your lot size (volume which I’ll talk about later) could really be huge. Another thing could be your attitude towards trading fake money – emotions sink in when you are trading real money – your hard earned money. That would probably spell the difference between trading demo vs live. Of course, demo trading allows you to hone your skills first. Some would say, “OK lang masunog pera basta demo pa lang.” In forex chatrooms in Facebook, a lot of traders would tease newbies this way, “Try mo masunugan ng malaking capital kung hindi ka pa matuto mag-trade.”

I’ll talk about simple steps how to get started in forex trading:

  1. Open an account. I opened an account in Liteforex with only $2,000 because my credit card limit is very limited. Today, I have accounts in Oanda and Pepperstone.
  2. Fund your account. As mentioned, I funded my account via credit card. The charge is refunded to me after some time. There are many options to fund your account such as Paypal or Western Union, however, credit card is much convenient for me.
  3. Install MT4 in your laptop or mobile. MT4 is simply the platform across all brokers where you can long (buy) or short (sell).
  4. Trade! ūüôā

How do I begin trading?

  1. Study. I’ve started browsing some articles in babypips.com.
  2. Since I’m an equities trader, I tried trading using the techniques I use in stocks. I believe that there are transferrable skills from stocks to forex. You can check out my article Candlesticks 101 to learn more. I will write more as I progress as a forex trader about different strategies you can start with.
  3. I’m a price action kind of trader in forex.
  4. I also enrolled my accounts in¬†https://www.myfxbook.com/ to keep track of my performance. What’s good about this site is that you can monitor several accounts from different brokers at the same time. It also has a tab called Economic Calendar where you can check important news and events that may affect the movement of the currencies. Note that this is optional.
  5. Join Facebook groups on forex trading. There are two FB groups today which I personally lurk and visit: PAFTI and FXRepublic.
  6. You can read blogs such as Tradeciety for learning.

Just in case you might be interested, one of the most sought-after forex fund managers in the country today, Coach Jonathan Reyes will be speaking at Market Outlook 2017 on December 17, Tramway Timog QC. He will be speaking together with Noli Alleje, Burn Gutierrez, Ronald Cagape and Ves Legaspi. Tickets are sold for only Php1000 inclusive of food and drinks. Check out Facebook event here: https://www.facebook.com/events/178364369286840/

REFLECTIONS

October 19, 2016

my best investment for 2016 must be forex.. i started january of this year and i continue to track my progress to date.. i was able to enjoy fruits of trial trading (all my accounts are live btw, i just call it trial trading coz im newbie to this) before i got into losing streaks.. i used those funds to start some biz and i left some cap in my accounts.. early this october i saw an account plunging into 80k.. it made me feel like a loser trying to win again in this ruthless market.. after switching blades, i saw it rise to more than half a million.. (won’t state exact but i know you get the point how much you can win in weeks)..

while i can paint beautiful stories about it, truth is, i still have lots of things to improve on.. i still feel like im a child lost at the crossroad between long or short, which pairs to trade and whom to listen to.. i still feel like i have a lot of things to polish like a stable trading system, risk mgt and position sizing.. i couldn’t count the number of nights i cried over losses and mistakes.. and hopefully this 2017, i shall be way stronger and better..

i started with stocks trading, true.. people ask why not become fulltime trader? well let’s say im enjoying being multipotentialites.. i guess my heart is big for various passion.. and i love the industry im working on that makes my childhood dream come true.. nung bata kasi ako natutuwa ako sa mga professionals na anggaganda ng damit, dress, nakaayos.. kaya i went to this industry that made me like im fulfilling a kiddie dream..

suppose you wanna go into fulltime trading.. say you have half a million pesos.. siguro ask, can you make probably atleast 10% a month? do you have the guts to into fulltime trading? do you have a “play” that you think you do well and can sustain your costs of living? dunno about you if the cap is small or big, for me it’s all about consistency.. today alone i earned a month worth of salary of a manager in pinas, pero bukas, pwedeng zero, pwedeng talo, pwedeng panalo..

say, sideline mo to earn 30k -50k from trading per month, masama pa ba.. ‘di pa ba sapat.. i think it’s good enough.. impt protect your cap..

also, no matter where you get your sideline income, whether from business, commissions, trading or employment, doesn’t matter.. for as long as you are living your purpose, you are enjoying life, you give, you live your mission, you endure challenges – you’re in for a life worth living..

October 11, 2016

drafting a few 2017 plans:
– it’s long overdue.. i have two properties to develop and i promised my mama that 2017 will be construction time once again.. i learned a lot from this venture and i just don’t know why i love the feel of properties.. wala kasi kaming sariling tirahan nung bata ako until college.. it’s like when you see an empty land, your imagination runs wild, and you know you’re putting up something beautiful.. ive got an apartment to develop next year
– philcrowd will be a household name.. it’s an honest endeavor.. it is rooted by passion and it is driven by good intentions.. we’re equipping ourselves day by day by learning, expanding, pushing through the odds.. i know we can touch more lives next year.. i know it is a venture worth fighting for
– i hope my newbie year in fx shall decay and id outlive the interest into a daily passion.. stocks would always be my one great love.. but buck is a buck no matter where you earn it, we just keep exploring ways to earn more and grow as a person.. im like a kiddo, hard-headed, crybaby over losses.. i hope 2017 i can capitalize further and mature as an fx trader.. it’s just that it is quite a feat to multi-task with stocks.. am i crazy to be awake 247 a day of course not.. i need to work on time mgt especially since i will be —
– studying.. i want to sharpen the saw, my memory, esp since visual recall is one of my core.. i just want to read books, learn from people and grow.. i can’t imagine myself not growing at all..
– more intraday stock trading.. im inspired by veteran traders who have sort of market mastery
– greenhouse project + farm expansion.. this would bring me more often to manila..
i have plans to level up my career, and to strengthen my ties with my family.. we still have more months before 2016 officially closes, but im excited over a new year and its beginnings.. i know that God empowers me to do every dream He has planted in my heart.. i hope to hear that voice everytime i am disheartened, weary.. as a single person, i thank my family and friends who encourage me to become better..

i hope 2017 will also be an awesome year for you.. im always here.. i hope in my little way i am able to inspire people.. inspire me too with your success.. we are all born champs.. we are all born for greatness..

October 2, 2016

i woke up from long sleep tonight when i thought id plan out for the coming year.. naalala ko lang there was an instance early this year when i was “summoned” to show off my trading perf in fx.. newbie talaga alam ko sa sarili ko at nangangapa pa..
when i withdrew funds last april, i didnt realize fx is real.. i was able to fund a few businesses facebook world doesn’t have to know.. i tested brokers and see if i could withdraw funds and true enough naka-withdraw naman..
naked trading until this very day.. this september bumalik lang ako sa “tunay kong pagkatao” when it comes to trading.. balik lang sa strat na comfortable ako.. simpleng price action lang..
i could vividly remember that moment when i was challenged and it probably would be one of the things id shrug off in life.. minsan talaga, ikaw lang maniniwala sa sarili mo.. at lahat ng tao doubtful sa kakayahan mo.. kapag pinakita mo sa sarili mo na kaya mo, kakayanin mo lahat kahit wala naniniwala sa’yo

sa trading, ‘di pwede puro angas at yabang.. alipin lang tayong lahat ng merkado.. walang magaling, walang tama.. i guess hanggang ngayon naniniwala ako sa tsamba.. kaya ‘wag malunod sa bawat panalo..

sa equities ako nagsisimula at ‘di ko makakalimutan ‘yung araw na nakapagpundar ako ng bahay dahil dun.. lumayo man ako magfx magsstocks pa rin ako.. sabagay bago pa lang naman ako sa fx at baka nga tama na wala pako alam dun..

siguro masasabi ko lang sa bawat tao na wala naniniwala sa mga pangarap nila, ‘wag niyo na pansinin mga tao na nagdududa sa inyo.. maniwala kayo sa mga sarili niyo at kahit ikaw lang ang naniniwala sa sarili mo, tatayo ka sa sarili mong mga paa at patuloy ka lang sa pangarap mo

‘yung mga nagsisimula pa lang sa stocks ‘wag niyo rin idiscourage or laiitin kung nagkakamali man sila.. turuan niyo o kaya sabihan.. walang guru.. lahat nagkakamali.. lahat naging newbie.. tumagal lang tayo ng ilang taon dito dahil ginusto natin.. ‘wag natin pigilan mga tao na gusto matuto at kumita nang marangal

September 30, 2016

fx

it would be unfair i keep talking about this whole financial freedom journey without sharing with you what i actually do.. you guys all know ive started trading forex since january.. january to april was like party mode on.. may was a heartbreak i will never forget in my entire trading life.. june to july i got swamped with start-up ops.. august was another heartbreak involving external people issues, etc.. september looks like engulfing all the historic months, simply sayin’ well, it’s a new life ahead..

if you guys think this is impressive, maybe you guys don’t know the bucket of tears ive cried at my first taste of cutting losses.. i guess you don’t know those moments when i felt like im the most unworthy trader in the whole world.. i had crazy dreams when i was winning – id run a pet shelter, id kill the world with kindness and volunteerism, id help a lot of communities.. when im losing, im just down and a lot of things going on in my head.. in those nights of sadness i felt like this isn’t for me.. i guess that’s how we passionately love what we do.. we just keep trying, even if our heart is broken.. even when it hurts so bad that you’d find yourself asking why am i doing this, what’s this for..

im no newbie in stocks and though there are skills transferrable from equities to forex, i think there are also some habits uneasy to break.. i didn’t entirely make a switch, im zombie doing both.. i know in forex im undercapitalized, guess i just dont wanna feel the pressure – until this very day i feel like this is something enjoyable.. i dunno maybe next year i won’t be as talkative as i am today on this.. maybe ive got the hang of it that im just silently trading..

i stalk people, read sites, follow groups and im totally in awe with how impressive people are.. those who have dedicated their lives sharpening the saw and polishing their techniques.. wish someday i could be as awesome as these people are.. for now, im just a little girl struggling to balance her multi-colored life with so many things + this thing called forex..

be gracious enough to wish me well on my trades.. that i may be alive in this battlefield, that ill pick up my gear everytime i get bruised and that i realize who i am everytime i lose the heart to keep going.. im all human.. losses are painful.. gains cloud the mind.. it’s a big bunch of discipline to be clear-headed all the time..

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That ends our mini learning course on how to invest in Philippine stock market!

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 Every Filipino deserves to be financially free.

#FilipinoFinancialFreedom

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