I’ve written a blog about the things you should know about forex and you can read it here. Now, I know a lot of you have more questions about forex, such as is it safe to invest in forex? Is it more worth it to invest in forex than stocks? How much money should I put in forex? I will answer those questions in this blog.
Forex is more volatile than stocks. It’s a place where you can lose more money. If you haven’t traded in forex yet, it’s best if you will study the market first before putting your money in it. Don’t sacrifice your hard-earned money if you don’t know what you are doing.
Forex is good if you know how to trade
Actually, forex is good. It’s a place where you can earn more money than in stocks. It’s a place of money if you know how to trade. For as low as $100 or more or less 5,000 pesos, you can already trade in forex without investing a massive amount of money. You have to know how to trade if you want to be safe in forex. I’m encouraging newbies to study first before doing anything else. Remember that forex is not a safe market for those who lack trading knowledge.
Catch me in my live training events! (quick plug)
The heart of why I do these seminars is I want to build a generation of Filipinos with the right foundation in stock investing. I want to bring smart investing to every Filipino around the world! If you would like to know more about how you could time the market check out the training below.
Invest a small amount
I know a lot of new investors are enticed to test new waters. Well, if you are thinking about forex, I suggest you start small. Don’t put millions or hundreds of thousands in it if you are a newbie. You need to be careful especially now that you are just starting. You need to invest in your knowledge first. If you have a massive amount of cash to invest, for sure, you can spend more on books and seminars. Invest in knowledge, invest a small amount in forex, and you’ll be fine.
Use technical analysis
Unlike stocks, it’s hard to apply fundamental analysis in forex, especially when information is only scheduled to be released once a month or once per quarter. Technical analysis is more convenient to use in forex. It’s time for you to read the charts. Forget about fundamentals first as technical analysis is more useful in this market. Learn how to use the candlesticks, trend lines, support and resistance, and other technical indicators. It’s time to show your technical skills. Choose the indicators that will work for you best in forex.
Go for the long term
If you want to protect your money and invest safely in forex, go for the long term. Forex is not just for scalping. There is a good future in forex if you know how to trade. Utilize the sell and buy buttons. Depend your strategy on your technical analysis. If you think a specific pair will go up in the long-term, invest your time to study this pair carefully. Going for the long term is better than scalping because there are more chances for you to profit. Scalping is dangerous and you shouldn’t go for it as a newbie in forex.
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