Three trading tips for novices
MS Yap Hui Sze, a dealer with Phillip Futures, has had three years of experience in the trading industry. Her expertise? Advising clients on which currencies to trade in and when.
Half her day is spent monitoring and analysing the dips and surges in the value of more than 30 currencies around the world.
She gives greenhorns three tips:
Find a reliable brokerage
Find a reliable and trusted forex brokerage which can provide you with good customer support, competitive spreads and educational resources like market reports and free seminars. Typically, a good broker will provide you with updated data so you can make informed decisions, as well as inform you immediately of any changes in the market.
Do your research
As every currency has its unique features, it is important to understand the major factors that drive price movements when identifying trading opportunities in forex.
For example, newcomers with a stake in the greenback may want to keep tabs on its movement in the light of the US Federal Reserve's decision to taper its stimulus programme.
Adopt good trading habits
Risk management is vital. Know your risk appetite and avoid over-leveraging as small price fluctuations can have a big impact on potential profits and losses. It is recommended to place stop-loss orders to help limit losses and safeguard potential profits.