Frequently Asked Question About Forex Trading

Frequently asked questions about forex trading
From time to time I’ve been receiving emails asking questions about forex trading. 
I know that some of them has been answered already on the free ebook guide that I have provided, plus I also share some insights through emails on my subscribers.
Now, I understand that not all have downloaded it and included on my subscribers list.
To address those questions one time, this would be the purpose of these blog post and from time to time will also be updated to address future questions to help aspiring traders and those who are really new.
Now, I just want to remind you that this is based from my own personal experience and opinion. I am not a guru/expert, I am just an experience trader sharing what I know and what I have learn throughout my journey. These are not financial advice and should only serve as general information purpose only.
I don’t push anybody to believe in me and it is up to you how you will used this information in your own advantage.
 
<h2>How to start trading? Pano ba magsimula sa forex trading?</h2>
No doubt that this is by far the most common question every beginners asked. 
Now, the answer for this question is actually provided on my free guide.
This is not a simple questions and requires a more in depth step by step explanation and I believe that the blog post is not suited for this topic.
Anyways, go ahead and download it below.
<a href="http://www.mikeperlas.com" target="_blank" rel="noopener noreferrer">CLICK HERE TO DOWNLOAD THE FREE EBOOK GUIDE</a>
<h2>Is trading legal in the Philipines?</h2>
Back in October 2018, SEC release an advisories to the public about foreign exchange trading.
“FOREIGN EXCHANGE TRADING IS ILLEGAL IN THE PHILIPPINES,
The public is hereby advised to STOP engaging in Foreign Exchange Trading and to STOP investing in foreign-registered investment platforms of commodity, futures, contracts for difference, indices, binary options and the like. Further, the SEC advises the public that persons and entities acting as brokers, salesmen or agents of these securities have NO LICENSE to engage or deal in any manner with these securities and should therefore be AVOIDED or IGNORED.”
Date Posted: October 31, 2018
http://www.sec.gov.ph/foreign-exchange-trading-is-illegal-in-the-philippines/
(I am not sure if it is already updated once you read it).
This was release because there are increasing number of investment scams related to forex trading. Maraming indvidual na ang nai-scam by brokers, other people who pretend a mentor, salesmen or agents or an account manager offering such unrealistic investment scheme.
Now back on the question, is forex trading legal in the philippines?
NO. Based on SEC advisories, Forex Trading in the Philippines is Illegal but
Securities and Exchange Commissions only advised the public to STOP ENGAGING and INVESTING in the Forex Market or Foreign registered investment platforms. 
Currently, there are no existing laws pertaining to the Foreign Exchange market that will cease the individual from participating in the Market nor will regulate the increasing number of investment platform online.
Which means, we can still participate trading forex especially if it is for your own personal benefit provided that it is your responsibility to make sure that you understand the risk associated in trading.
Kindly read the <a href="https://mikeperlas.com/risk-disclosure/" target="_blank" rel="noopener noreferrer">Forex Risk Disclosure</a> here.
You are reponsible in making sure that your broker are truly regulated by known regulatory bodies to prevent fraud and scams. Which means wala kang habol if something happens even if you seek help from SEC, at the first place my advice na sila (SEC) not to engaged. They have reminded us already.
You are solely responsible in every decisions you make engaging in the foreign exchange trading.
Karamihan ng mga Filipino Traders uses an offshore broker regulated by foreign bodies, since wala pa ngang regulation dito sa Pilipinas for those local brokers. Basically as a trader, they are trading their own money based from their own decision and not depending to anyone.
 
Studying and learning how forex trading works is NOT ILLEGAL in the Philippines
And learning how to trade or learning the skills about trading and how it works is not illegal.
There are a lot of tutorials, webinar, online workshops, books, online courses available especially local mentors and coaching programs that are offered locally.
Kaya the first step you have to take is to really learn and understand muna, gained enough knowledge about it para iwas scam. Equipped yourself with the right knowledge so you can learn how to manage your risk and you can trade your own and not depending to anyone.
There are limitless opportunities if you really understand and develop the necessary skill set. Income opportunities in trading is really doable, kaya lang nasisira nga dahil sa mga fake brokers, scammers and those people na sinasamantala ang ignorance ng isang tao. But if more Filipinos will be aware and will be given the right information, scams will be avoided. And this would be both beneficial for us and our country. I believe it is one way to learn financial literacy.
 
<h2>Am I in trouble if I trade forex? Should I stop it now?</h2>
NO worries, you are not in trouble. There are no known existing laws that will govern and cease those individuals participating in Forex trading, in fact, those banks here also trade and transact currency exchange, if you are in trouble, they are in trouble too.
It is up to you if you will stop it or not. It is your own decision, there are no known regulations or laws that pertain to Forex trading in the Philippines, no one will stop you in trading Forex especially if you are trading with your own money.
If you are soliciting investment trading other peoples money, thats were you might got in trouble. That’s illegal.
But if you are making a good income or returns on your trading, trading your own money, don’t stop as long as wala kang tinatapakan na tao, for as long as it is for your own good.
 
<h2>Would You Need A Lot of Money To Start Trading??</h2>
Short Answer: NO
Because, just like you I don’t have enough capital to start with, instead I utilize the “demo account” offered by retail brokers. Basically demo trading using a virtual money which allows us to trade and experience as if you we are trading with the real money.
It is one of the advantage why Forex Trading becomes a lucrative way of making money online..
You can start with zero and trade like a normal trader with the same features and real time data using a demo or virtual account. This will help you while learning how it works, developing your skills as a trader, familiarizing each and every forex lingo and most specially establish your own trading system.
You can do demo trading as long as you want. Kahit nag-ttrade ka na live, you can still utilize demo to practice new technique and strategies.
You can follow and click below link how to open a demo account.
<a href="http://www.mikeperlas.com/forex-demo-account">HOW TO OPEN A DEMO ACCOUNT IN FOREX</a>
Kaya even if wala ka pang pang kapital, there is no reason for you not to start trading, utilize demo while saving up.
 
<h2>How much is the minimum capital needed to start trading live?</h2>
Assuming that you already have the skills, established your system or your trading edge and you are now ready to test it on a live market condition.
For the minimum capital, there are brokers that allows you to open an account with $100 or $200 capital.
However, please take note that with that $100 or $200 starting capital, you need to manage your expectation and be realistic on your expected result. It is not an ideal capital for a decent return, it is only ideal for you to practice and test your strategy on a live market condition. Again, trading forex does not offer a get rich quick scheme, walang double your capital overnight, there is no payout, there is no such thing as guaranteed return on a monthly basis, walang 100% return in 45days or double your money in weeks or months.
There is NO GUARANTEE that you will make money in forex trading. Maaga pa lang aware ka na dapat dito so you could already assess what to expect.
<a href="https://mikeperlas.com/how-much-money-do-beginning-traders-make/" target="_blank" rel="noopener noreferrer">HOW MUCH MONEY DO BEGINNING TRADERS MAKE</a>
<h2>Do we need 24hrs to watch how it goes?</h2>
No. 
It is true that the Forex Market operates 24hrs a day and we as a retail could participate for 5days a week. 
But it doesn’t mean you have to be their on the monitor all day to watch the market price fluctuation. 
You can build your trading business around considering your personal work schedule. 
1 to 2hrs is enough for you to participate and run your trading business.
However, at the start of your trading career, it is normal to spend more time on the chart since you are practicing and learning pa the concept.
You can reduce it eventually once you build enough confidence, established your trading style that will suit your schedule. In Forex Market, we can view the price fluctuation every minute, 5min, 15mins, 30mins, 1hr, 4hr, daily, weekly and monthly. 
This is what we call time frame, and this time frame are utilize depending on the trading strategy and style you will be using. So basically, you can participate trading at any given time of the day provided that it suits your trading criteria.
My trading concept/strategies and system were based from an end of day approach which means all my trading decision whether looking for an opportunity to buy or sell currency or execute my trade are based from the daily closing price.
But my style does are not only limited to that, I also utilize the intraday time frame like 1hr and 4hr.
<h2>What platform to used?</h2>
The most common platform used by retail forex trader is the Metatrader 4 or MT4 platform. This is a universal and free platform which can be easily access and download on every retail brokers. To get the platform, you have to open a demo account on your preferred broker, <a href="https://www.icmarkets.com/?camp=34202" target="_blank" rel="noopener noreferrer">here is my recommended</a>.
And then a login details on the client area or members area will be given to you via email, just used to login on the site and find the mt4 downloads.
Other platforms are the MT5 (which is more advance to mt4) and cTrader. This are all free platforms too. You can find it also inside the client area.
Some brokers also offer a web based trading platform which means you can access and trade using just a web browser like internet explorer and google chrome. However, there are limited features of using a web trader, you can utilize it only for execution and monitoring.
Now, there is also a popular platform that has a lot of features and can also be access via web browser. This is has both free and paid version.
You can check it out here, just signup and try it for free. <a href="https://www.tradingview.com/gopro/?share_your_love=mlperlas" target="_blank" rel="noopener noreferrer">SIGNUP FOR A FREE TRADINGVIEW ACCOUNT HERE</a>
<a href="https://www.tradingview.com/gopro/?share_your_love=mlperlas" target="_blank" rel="noopener noreferrer">www.tradingview.com</a>
<a href="https://www.tradingview.com/gopro/?share_your_love=mlperlas" target="_blank" rel="noopener noreferrer">Tradingview</a> offers a great advantage for me since I am still a corporate employee, I don’t have an access on the mt4 platform. This is my alternative platform where I do the analysis, mapping trading opportunities and my trade management/monitoring. Then I just used my web browser for trade execution.
But I believe you can also trade using this platform provided that you will link it to your broker. I haven’t tried it though, but I think it is only applicable for their paid version.
And one of my favorite advantage of tradingview platform is the features of “bar replay”. It allows you to run a simulated chart from the past and previous market condition. Anyways, this is another topic to discuss.
Go ahead and try both, I still preferred to use mt4 platform, since dito ako mas familiar.
<h2>What are the most important things/requirement in trading?</h2>
Given that you are a total beginner, the number one important requirement is your full commitment on learning and acquiring the necessary skills in trading. 
To be honest, hindi biro ang trading, especially if you are only after the money.
I know! I know! , kaya ka naman napunta dito is because of the potential reward that you can get trading forex. But it is not that simple. It is not that just about pushing the buy or sell order then you are expecting na kikita ka na.
It is like any other professional skills out there that requires true commitment and dedication. It is also a business that requires full attention especially if you are still learning and establishing what will be your system. 
Ang lahat ng mga successful na negosyo, may kanya kanyang sistema na sinusunod. And before they have established that, katakot takot na hardwork, patience, persistence and perseverance to push. Tipong dugo at pawis to establish on where they are right now.
It is the same thing in trading, just like mine, if you happen to watch, view or read some of my earnings/profit. It is not an overnight success naman. I really commit to myself to doing this business. Daming failures, errors, mistakes after mistakes and big losses bago ko nakuha yun.
I am not trying to kill your dream, but it is the reality, you have to be aware, but sa kabila nun or sa likod nun, if you do it well, lifetime and limitless opportunities. Trust me on that!
And there is a lot of ways na to help you shortcut the process.
Other requirements are external and are easy to provide.
Since you are a beginner, what you need is a laptop or pc, an internet connection (mobile data is sufficient enough, jan ako nagsimula) and a demo account for you to practice. If you can afford a simulation software, a mentor, online coaching program or community with likeminded and with the same intentions as yours much better, you can really shortcut your learning curve. Yan ung wala ako dati, I cannot really afford coaching and mentorship program kaya I really learned the hardway and it really takes away so much of my time.
And that is the reason why I also established my community and my <a href="http://www.mikeperlas.com/ptftmcenrolment" target="_blank" rel="noopener noreferrer">8 Week Live Online Masterclass</a>
Other than that, its your learning efforts and hours of hours of practice until you understand the concept.
Now you might ask, can I used mobile phone?
Yes you can, but not now since you are just starting. 
I don’t recommend to use a mobile trading app for practice. 
You can used it for trade execution only, but for planning, anticipating market opportunities, managing your trades, it is better if a trading platform on laptop, pc or using a browser. You’ll understand it better if you already understand the concept of trading.
You don’t need an expensive or high end laptop or pc to start, even a 2nd hand would do. As long as it is running and still in good working condition. 
Just think of it na part ng business yan, because that would be the tool na gagamitin mo for your trading business.
And if you don’t really have money to invest and buy even a 2nd hand laptop/pc, there is still a way, computer shop. I understand that it will be hard and malaking adjustment, but if you are really committed, you’ll find ways. Be resourceful!
 
<h2>Can I withdraw all I have deposited whenever I quit Trading?</h2>
Yes, definitely you can. You can withdraw whatever the amount is left on your trading account. It means that, if you deposited $200 and let say you loss $20, that would leave you $180. This is the amount that you can still withdraw.
And let say for example you gain $50, so your total account balance is $250, you can withdraw the whole $250 as long as you don’t have open positions.
Withdrawing funds is as easy as depositing funds, although it would take 1-3 business days. On my current broker that I used, an <a href="https://www.icmarkets.com/?camp=34202">Australian regulated broker,</a> I don’t have problem withdrawing my funds. In my experience, it only takes within 1 business days sometimes less than a day.
 
<h2>Do I need to open a dollar account before I can fund my account?</h2>
No. You don’t need it. 
There are various method how you can fund a trading account offered by brokers and are purely online transaction.
The most popular are using Credit/Debit Card, <a href="https://account.skrill.com/signup?rid=96738530" target="_blank" rel="noopener noreferrer">Skrill</a> and Paypal. 
Personally, I used <a href="https://account.skrill.com/signup?rid=96738530" target="_blank" rel="noopener noreferrer">Skrill</a> and Paypal, I just need to link my local bank account to them and besides it is more safe than directly depositing via credit card or debit card.
<a href="https://account.skrill.com/signup?rid=96738530" target="_blank" rel="noopener noreferrer">OPEN SKRILL ACCOUNT HERE</a>
<a href="https://www.paypal.com/ph/webapps/mpp/home" target="_blank" rel="noopener noreferrer">OPEN PAYPAL ACCOUNT HERE</a>
Basically, <a href="https://account.skrill.com/signup?rid=96738530" target="_blank" rel="noopener noreferrer">Skrill</a> and Paypal are secured online payment gateway that are use for online transaction such as buying items online.
All you have to do is open an account from them, have it verified and just linked your local bank account.
For deposit: 
Broker -> Skrill (make sure it has a fund) 
Broker -> Paypal (even if your paypal balance is zero, you can still fund, paypal will just transact and debit the amount from the local bank account that was linked to it)
For withdrawal 
Broker -> Skrill -> Local Bank (make sure you also link a bank account on your skrill)
Broker -> Paypal -> Local Bank (make sure you also link a bank account on your paypal)
 
<h2>How long does it take to become a profitable trader?</h2>
6months? 1 year? 2 years? 3years? or 5 years?
Honestly and with my personal experience it is very subjective and really depends on several factors.
Mga factors na kaya at hindi natin kayang kontrolin.
But the good thing is that, there are ways we can do to speed up the process.
One great way is to learn from other successful and profitable trader’s mistake or simple copying or emulating what they are doing.
That’s what my <a href="http://www.mikeperlas.com/pttplaybook" target="_blank" rel="noopener noreferrer">Part-Time Traders Playbook</a> and my <a href="http://www.mikeperlas.com/ptftmcenrolment" target="_blank" rel="noopener noreferrer">Masterclass</a> is all about! Hindi na sana ako nagpakahirap magsearch ng sagot online which sometimes very confusing. And hindi ko alam, alin ba jan ang tama or san ba ako maguumpisa?
Most probably nagawa mo na rin magsearch ng “how to” sa google pero ang dami ng lalabas which is malilito ka na kung alin ba talaga dito, and you have no choice but to figure it out which is very time consuming.
Profitable traders aren’t actually born with it. Wala naman talagang pinanganak na successful na.
Even if they really have natural ability and skills, they still need to put an effort with years of experience to put them on the top.
But what I’d like to share to you is the 3 factors that are really controllable that once you’ve understand, it can definitely lead you on determining how long you can be profitable.
<h4>Here it goes:</h4>
1. How passionate are you about trading? Gaano mo kagusto mag-aral ng trading?
I discover my passion about trading not only because I want more money, not only because I have to generate additional source of income that could replace my salary as an employee so I can quit the corporate world.
But because I love the fulfillment when I successfully solve those market downturn and challenges in my trading that in return gives me a huge favor. I love watching the chart that represent the market order flow. I love analyzing the market price and numbers whether I make money or not.
I am very much excited on my future trade result. I enjoy every process and routine. I am excited everyday to see how the market react and move, but not to the point that I am very excited to jump on a trade hoping to get a quick and fast money.
I discover my passion in trading because I believe it is the only thing that will get me through the tough times..
I actually burned 3 live account, restless and sleepless trying to figure out everything. And my eagerness, my passion that originates from my deep reason why really keeps me going, it keeps me to pursue even if I failed so many times.
2. How much time can you commit?
The time you commit in studying and learning how to trade profitably has a direct impact on how long you could become profitable.
The more time you spend on studying the faster you can understand the content and absorb it.
There is a vast difference between a trader who commit 4hrs per day of studying vs the 1hr. 
The longer he commit to study the faster he can discover all the necessary information and tools that he needs to become profitable.
Although there is really a factor between trader’s behavior and mindset.
The more time you devote on studying the chart while taking down notes with what you observe about the market, or how the market moves, the sooner you’ll understand the market behavior and discover the patterns that can be use to generate profit again and again.
3. Are you willing to invest in learnings and education?
Imagine a company who hires employee without some form of degree to qualify for the position or a school without a qualified professional to teach.
What would be the result? “Failure”..
Although in Trading, there is no required degrees or professional training to start but it is also a career and a profession that needs to be hone and develop. Which definitely means you need to spend time and money educating yourself same as with other profession out there.
Engineers, Doctors and Lawyers are professional careers that requires years of learning which definitely requires tens, hundred of thousand dollars in education.
This could be the reason why 90% of the trader’s are failing. Failure to prepare themselves to be properly equip with knowledge on how they can actually become a profitable trader.
They tend to focus on the end result which is to make a quick and fast money not the process on how to make that money consistently over a long period of time.
Now here’s the thing, there is really no definite or exact answer on how long it takes
It really depends on every persons ability, actions and behavior. Every traders has its own unique ability.
It all comes down on answering this final question.
What does it take to become a profitable trader?
Because the cold hard truth is, not everyone has what it takes to become successful in Forex Trading. The reality is you need first to assess yourself if you are really a good fit in this business.
Can you remain discipline in the face of constant temptation?
Are you willing to delay your gratification?
Are you ready to be patient, even if your not willing to do it?
In Forex Trading, it is not what you are capable of doing, it is what you are willing to do to make it happen.
What are you willing to sacrifice in order for you to become successful in Trading?
 
That’s it for now, if you have questions that you want to add and are seeking for an answer, feel free to comment it down below or sent me an email at [email protected]
Hope you learn something!
Cheers!
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Frequently Asked Question About Forex Trading

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