9 FX Trading Myths Busted With Biz Whiz
Trading in the Foreign Exchange is no rocket science.
Have you ever been to another country?
Remember when you had your Philippine peso exchanged for foreign currency, then came back to the Philippines after a few days or so and had the foreign currency changed back to the Philippine peso?
Right then, you just applied the fundamental idea of trading, or buying and selling, currencies.
Just imagine that everybody is doing what you did in one centralized global market place where everybody is buying and selling different currencies, all hoping to make a profit.
What we call that one centralized global market place is the Foreign Exchange or FX, the biggest financial market in the world.
WHEN IN MANILA, trading in the Foreign Exchange (FX Trading) is a little unheard of, especially for people who are not in the financial industry.
Apart from FX Traders becoming instant millionaries, we have heard a few other things— a LOT of things that still didn’t get us in the boat.
I, myself, had reservations even with my finance background, but these reservations were resolved after one Saturday Afternoon, thanks to the Biz Whiz’ “Forex Trading For Beginners” Seminar Series.
Inspired by newfound knowledge, I sat down with Biz Whiz’ Managing Director and Owner Ms. Estelle Osorio and IKON Pacific CEO Mr. Athan Koo, who helped me run down a list of popular misconceptions about FX Trading.
(Promise, there are no off-throwing jargons in this article! I’ll be on it in straight-forward-English!)
9 FX Trading Myths Busted With Biz Whiz
Myth #1 – I need a massive brain for this.
You might be thinking, “Foreign Exchange Trading. Yikes. Sounds hard.” Oh, don’t get too intimidated.
Like everything you have accomplished in the past, this will start as a challenge, but will eventually get easier with practice. When the complex strategies and financial jargons start to bother you, just remember the goal: PROFIT! Buy a low rate that will sell at a high rate, and sell it at the high. This is the basic strategy to earn profit in a business and so with FX Trading. Keeping the goal in mind, you’ll eventually find yourself creating your own trading strategy that works for you. Naks.
Myth #2 – I need an even more massive bank account for this.
USD 150 or a little over Php 6,000.
A multinational FX broker, IKON Multibank Group, requires at least this amount for you to start trading. Gone are the days that only big companies who can trade at least a million dollars could enter the Foreign Exchange and trade.
Myth #3 – I have no time for this.
You’re not wrong in thinking that FX Trading takes up more or less than an hour of your day catching up with the numbers and doing some research. Knowing ‘what’s happening where’ is the best way you can protect your investment, and increases your ability to make the right calls to make a profit.
What makes this item a myth is that you can get the service of a Fund Manager or Trading Advisors at a minimal fee to do all the thinking for you. Ideally, if you want to be trading in the safe side, this is what you should do.
Myth #4 – It’s a SCAM!
You need a broker to give you access to the “trading world”. There are so many stories about people hiring a broker who turned out to be thieves in a tie running off with their money.
Estelle tells the class more than once, when you’re choosing a broker choose one with  Philippine Presence, starting with physical office in the philippines (not just social media presence & online customer service)  An excellent, long-standing track record and,  authorization from financial regulators, specifically the FCA (Financial Conduct Authority) of the UK. IKON Pacific of the IKON Multibank Group is an example of a brokerage that has all three criteria in the books.
Myth #5 – It’s like heading out to the Money Changer.
This is a myth in more ways than one and let me just mention the two most important differences.
If, let’s say, in one transaction, you wanted your USD exchanged to EURO in any Money Changer; you get EURO. On the other hand, in one transaction, if you trade your USD to EURO in FOREX; you still get USD converted from the EURO amount. Also, Money Changers use daily exchange currency rates, while exchange currency rates change in FOREX by the minute.
Myth #6 – Trading in the Stock Market is a sore, this is nothing different.
For those who have traded Stocks, you might want to give FX Trading a chance, even just up until learning how much it differs from the Stock Market.
FX Trading has its own set of risks and may seem riskier that stock trading given the global environment. Definitely, though, it has more muscle over the Stock Market. Now, I wouldn’t want to start mentioning here all the features of FX Trading because most of it is very technical. Let me, instead, just leave you with a thought: The higher the risk, the higher the returns!
Myth #7 – When rates go down, I’ll end up with a loss. Maybe, in the end, lose everything.
Buy at a low rate, Sell at the high applies when you expect for exchange rates to increase. So, what if you’re expecting exchange rates to go down? At a business perspective, you’re at a disadvantage of losing. However, when trading in FOREX you can still profit from this, because you can sell a currency without buying it later. So, what really happens in the end is up to the calls you made when trading.
Myth #8 – A Get-Rich-Quick Scheme.
Truth: You win some, you lose some.
No skillful trader who makes a fortune from FX Trading can brag that he hasn’t been on the losing end. It does happen even to the best. A skillful trader, however, knows where his instincts fell and can work on a better strategy. When people get insta-rich from trading, it is from the conscious effort put into it— what sets it apart from winning the lottery. So, start with baby steps. Take big leaps when you can afford it.
Myth #9 – There’s nowhere near to begin.
Begin by getting educated. By reading this article you’ve already begun!
Take it further by learning from experienced Traders by attending FX Trading Seminars such as this one offered by Biz Whiz, a company that provides training & consulting as an advocate of Financial Literacy & Continuing Education.
Then, apply what you learned through practice. To practice, you can open a free demo online account with IKON Group’s trading platform in the website. Most FX trading are done online, so thank goodness for the internet! IKON Pacific CEO, Athan Koo, recommends at least three months of practice before you go to the, in his words, “war zone”. It is enough time to get to know the FX environment, adapt and brush up on some current news to aid you while trading.
For more information on this seminar, go to: Making Fortunes with Forex Seminar Series for Beginners
BizWhiz Business Training & Consultancy
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