The Bangko Sentral ng Pilipinas (BSP) has issued a code of conduct to regulate forex (foreign exchange) trades in the country’s foreign exchange market for implementation within the year to promote price discovery, transparency and market conduct.
Under the new rules, market participants are required to obey the code of conduct that covers governance, ethics, execution, risk management, information sharing, and compliance, according to BSP Governor Nestor Espenilla Jr.
Espenilla commented on forex trading, “It doesn’t prevent speculation, what it prevents is taking a position and then you try to move the market, that one is illegal, but position-taking is not prohibited. We want to adopt it for the integrity of our market.”
The move by Espenilla come as forex trading is gaining popularity among retail investors, with many Filipinos trying to develop their trading skills during their part-time to earn extra income. Expert forex brokers advised these retail investors to develop their trading skill to maximize opportunities in the space.
The growing forex online trading segment is also pushing the growth in space as Filipinos with idle cash are investing in forex to earn extra money. These part-time traders do so without quitting their current work and spend all the time on trading as they gain confidence and the skill set to conduct comprehensive technical analysis on forex price movement.
Because of the internet, anybody with access can become a currency trader, JustForex, forex broker providing services in 197 countries for many years, said.
Here are several tips to start part-time trading on currencies.
According to JustForex, a startup trader must identify the hours he or she wants to spend in currency trading. It is crucial to set a stable schedule when you want to concentrate on your trading activity fully. Even if you are doing currency trading on a part-time basis, you still have to commit and dedicate your focus, at least while you are trading.
One of the most critical aspects of trading in foreign exchange is choosing the right currency pair. Currency traders generate profit speculating on a currency price movement, so it is essential that you choose the highly volatile currency pairs, at your scheduled trading activity time.
This means if you reside in Manila and decided that you want to be a part-time forex trader between 7:00 and 10:00 p.m. after your regular office hours, it is strongly advised that you concentrate on EUR/USD and GBP/USD because information and news reports about the euro and pound sterling are released around this time.
Expert forex brokers always tell aspiring traders to get the most of their trading activity and operate with your funds efficiently to achieve optimal results. It is still important to pay attention to trading forums, financial news, fundamental analysis as well as technical assessments by specialists.
Doing so will give you sufficient knowledge to identify emerging trends in the market. Train yourself on a practice account first to get yourself the hang of trading. You may practice on JustForex Demo account if you are up to it.
Analyze your results and keep learning. Do not get frustrated if you make unsuccessful deals during your initial trading activity, but learn from your trade and analyze.
Lastly, you must work with a reliable forex broker.