Keys for success in forex trade

Economy October 19, 2016 01:00

By Kwanchai Rungfapaisarn
The Nation

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 Mario Singh, author of the bestseller “17 Proven Currency Trading Strategies”, tells The Nation’s Kwanchai Rungfapaisarn about the secret of successfully trading in the foreign exchange market.

Please give us a brief introduction of ourself.

I’m the CEO of Fullerton Markets, Asia-Pacific’s fastest growing brokerage. I have been trading the forex market for the last 10 years and I’ve had the privilege to train over 20,000 retail traders and investors all over the world. 

Why are you in Bangkok this time?

This trip is to launch the Thai version of my best-selling book “17 Proven Currency Trading Strategies”. 

What exactly is forex trading?

Forex trading is basically the buying and selling of different currencies. Forex contracts are traded in currency pairs. 

Using USD/JPY as an example, we would “buy USD/JPY” when we expect the US dollar to strengthen against the yen and we would “sell USD/JPY” when we expect the dollar to weaken against the yen.

What are the secrets to successful trading in the forex market?

There are three laws of successful trading.

Strategies account for 15 per cent of your success, money management accounts for 30 per cent and state of mind, which consists of your beliefs and emotions, accounts for a whopping 55 per cent of your success.

Is forex trading risky?

Risk comes with not knowing what you’re doing. The Pareto Principle applies here – regardless of the endeavour, |80 per cent of people lose while|20 per cent of people make it. 

However, there are certainly people who make it in forex trading; and they make it very well. Here’s a prime |example:

Is forex trading like stocks?

Not exactly. There are three reasons why forex trading is better than stocks. 

The forex market is open 24 hours a day, you can buy and sell at any time.

With a daily trading volume exceeding $5 trillion, it’s the largest market in the world.

Why do you say that forex trading is the best way to accumulate wealth?

There are three reasons.

Low cost: There are no commissions and no exchange fees. We only pay the “spread”, which is the difference between the buy price and the sell price. This is less than 0.1 per cent under normal market conditions.

Leverage: A small margin deposit can control a much larger total contract value. Leverage gives the trader the ability to make nice profits, and at the same time keep risk capital to a minimum. 

Convenience: All you really need is an Internet connection and a laptop/mobile phone. 

What’s your secret to achieving so much success in forex?

Get a mentor. The main purpose of a mentor is to cut short your learning curve. This certainly beats self-study. 

Do I need a lot of capital to |start trading?

No. You can start trading with as little as $200. This is because most brokers give you leverage, which means you can control a bigger contract size with a smaller amount of money.