Tips on FX trading
HERE are some tips from Phillip Futures forex dealer Yu Chung Leong on trading currencies:
Be patient and wait for clear support and resistance levels before initiating a trade.
KNOW THE RISKS
As forex contracts are traded on margin, the gains and losses are amplified.
Protect your capital by setting a stop-loss level to cut your losses.
KNOWLEDGE IS KING
Do not trade on gut feeling. Try to understand the political and economic reasons behind a currency's movements.
Pay attention to what is happening in the economies of China and India. If China faces a credit crisis, for example, this will affect the financial markets and result in a rush to safe-haven currencies such as the US dollar and the Japanese yen.