Frequently Asked Questions
Question : I am not greedy, I just want to make about $100 every day from the Forex markets. Is it possible?
Answer : To be frank, you can only take what the FX market gives you. If market conditions are not favourable, you simply cannot force a trade just because you wish to meet your own daily financial target. Unfortunately, this is the main reason why novice traders lose money.
Question : What separates your course from the other Forex trading courses conducted in Singapore?
First and foremost, all the trading courses in Singapore do have their own unique teaching styles and advantages. I know that for certain as I have been through some of these courses myself. But from my personal interaction with fellow traders and course participants,
I noticed a couple of important observations.
Firstly, I noticed that not all course participants fully understood all the materials taught in the 2 or 3 day seminar due to "Information Overload".
Secondly, I also observed that very few course participants dare to muster the courage to ask the trading mentors questions fearing that other traders might considered them to be overly "Elementary" in nature, especially in a jam packed seminar. That I believe is the Achilles heels why so many traders fail or give up at the very first hurdle.
Understanding the innate problems faced by most first time traders, I have decided to provide personal FX coaching to individuals on a one to one basis as compared to mass group learning conducted by most FX courses in Singapore.
In addition, my course is conducted over a 2 month time-frame, giving traders more time to assimilate the teachings at their own pace as compared to cramping excessive information into a overly compact 2 or 3 day Forex trading seminar.
Moreover, you are effectively paying less for more as the bulk on the course fee will be dedicated to your Forex education and customised trading tools instead of the expensive venue charges and buffet meals.
Question : Is it true that Forex trading is simple?
Forex trading is simple but not easy. Simple in the sense that the currency markets can either only go up, down or sideways. In addition, trading the Forex markets is simpler when compared to other financial instruments because you only need to master, manage and monitor a few major pairs of currencies that you are interested to trade. Compare that with the thousands of securities and shares out there in the equities market, FX trading is comparatively easier.
However, it is often difficult to trade profitably without the proper "Education". The key to Forex Trading Success is having the right kind of knowledge and experience. Like all business and investment ventures, it is always the "Pros" with the necessary experience that makes the big bucks and mind you, trading experience needs to be gradually accumulated.
Question : Can I make a lot of money trading Forex?
The answer to this question is two-fold, what is your definition of "a lot of money" in the first place?
Firstly, to someone who earns an average $2-3K every month working at a 9-5 job, making $10K of profits trading Forex in the comfort of their home is a whole of dough. But to a serious Forex Investor who have invested millions, that mere $10K of profits is just a drop in the ocean.
Secondly, as a serious FX trader, we should be looking at the rate of return on our trading capital on a monthly or yearly basis. It would be fantastic if you are able to get back at least 5% to 10% of your original capital per month on a consistent basis.
In my opinion, this is a more appropriate and realistic way of making the "kind" of money you reckon is deemed abundant.
Question : What kind of trading methodologies are available when I trade the Forex markets?
Technically speaking, there are 5 major types of Forex trading methods, namely "Fundamental Trading", "Technical Trading", "Sentimental Trading", "News Release Trading" and "Expert Advisor Trading".
Personally, I am strict "Technical" trader when I trade manually. But in the background, I allow my pre-programmed "Expert Advisors" or "Forex Robots" to do their thingie and earn me a couple more bucks.
Unfortunately, there is also another type of trading method utilized by most novice or inexperienced traders, it is none other than "Speculative Trading" or "Gambling". This is the sure-fire way to lose your hard earned money in the shortest period of time.
Question : What is an ECN data feed?
Answer : ECN refers to Electronic Communications Network. An ECN broker or data feed allows you access to the wholesale FX market with much lower spreads. Most ECN Forex brokers require traders to open at least a $50K account in order to access the more competitive ECN data feed. Fortunately, at FXPrimus, traders are able to access much lower spreads when they open a standard $1K live account.
Question : What is money management all about?
While trading strategies tells you when to enter the market and when to exit. Money management tells you how much to risk per trade ( Eg : 1-2 % per trade ) as well as the optimal position size to trade.
Like what one of my mentors, Dr Alexander Elder would say "The 2% Rule will save your account from shark bites and the 6% Rule from piranhas."