‘Risk management, disciplined decision-making vital in forex trading’

MANILA, Philippines — Foreign exchange trading, when done correctly and scientifically, can be a highly effective strategy for financial gains and diversification, according to one of the country’s leading forex trading educators.

Quoting the International Monetary Fund (IMF), Born2Win Philippines chairman and founder Ferdinand Pabalan recently said: “Economic fragmentation and the potential reorganization of global economic and financial activity into separate, non-overlapping blocs could encourage some countries to use and hold other international and reserve currencies.”

Speaking on the sidelines of Born2Win’s fourth-anniversary celebration in Makati recently, the forex education and training company chairman said the economic fragmentation and reorganization underscored by the IMF are creating rich opportunities for forex traders worldwide.

“Forex trading, when done correctly, can be a highly effective strategy for financial gain,” said the executive, who highlighted vital reasons why forex trading is worth mastering.

Pabalan said diversification beyond traditional investments is important, providing other source of financial gain when traditional assets such as stocks, bonds or real estate are not performing well.

“Many Filipinos have invested in traditional assets like stocks, bonds or real estate. While these are essential components of a well-rounded portfolio, forex trading offers diversification that’s not correlated to these markets, meaning one’s potential for financial gain isn’t solely dependent on the performance of traditional assets. The forex market operates independently, influenced by global economic conditions rather than domestic market trends,” he said.

Pabalan said the forex market operates 24 hours a day, five days a week, allowing traders to trade at their convenience, regardless of their busy professional schedules. “Forex traders have access to the most liquid financial market in the world, with a daily trading volume exceeding $6 trillion,” he said. “This high liquidity ensures that you can easily enter and exit trades, minimizing the risk of market manipulation and slippage.”

According to Pabalan, a unique aspect of forex trading is leverage, allowing traders to control large positions with a relatively small amount of capital. “While leverage can amplify gains, it also increases risk, which is why risk management is paramount,” he said.

By using tools like stop-loss orders, position sizing and diversification within currency pairs, traders can effectively manage and mitigate risks, turning potential volatility into opportunity, Pabalan explained.

“Forex trading can also hedge against economic downturns in your home country. For instance, if the value of your local currency is expected to weaken due to political instability or economic issues, you can position yourself to profit from this by trading in stronger currencies, he said.

This hedging strategy adds extra protection to traders’ overall financial portfolio, the trainer-coach said.

“Finally, the forex market offers the potential for substantial returns, especially for strategic and disciplined people. Unlike more passive investments, forex trading allows you to manage your financial growth actively. With careful analysis and a clear strategy, you can identify trends and capitalize on market movements, often achieving returns that outpace traditional investments,” Pabalan said.

Born2Win Philippines was founded in 2020 in Taguig. To date, the company has trained more than 300,000 course graduates.

The company will be offering a free, three-hour introductory webinar on the following topics: What is Forex, Exchange Rates, When to Buy vs When to Sell, Position Size, Fundamental Analysis vs Technical Analysis, Trading Strategy, Risk Management, Take Profit and Stop Loss and Practical Application.