FX Primus Ltd.

FX Primus Ltd.

December 30, 2012 21:15 ET

Your Top Forex Questions for December, Answered by FXPRIMUS' Mario Sant Singh

FXPRIMUS Director of Education & Training looks at major currencies, trading risks and returns as 2012 ends

EBÈNE, MAURITIUS--(Marketwire - Dec. 30, 2012) - Ending 2012, Mario looked at the Federal Open Market Committee (FOMC) statement, the Japanese election outcome, the Chinese Government stimulus package, the EURUSD and Forex trading goals, in his AskMarioSingh.com blog, "Your toughest Forex Questions answered daily".

Said Mario, "The FOMC decided to buy USD85 billion per month in Treasuries and Mortgage Backed Securities (MBS) and Ben Bernanke said that the Federal Reserve (Fed) would continue this latest Quantitative Easing (QE) stimulus until the U.S. unemployment rate goes below 6.5%. This means that this QE will continue indefinitely and the United States government will incur higher levels of debt, resulting in further weakening of the Dollar during the next 2-5 years.

On Japan and China, he said, "The landslide victory by the Japanese Liberal Democratic Party (LDP) will likely smooth the path for more fiscal stimulus early next year and might result in further weakening of the JPY, while possible Q1 2013 Chinese growth would give support to the AUD and the NZD."

On the EURUSD, he pointed out that the problems surrounding the Euro Zone are far from being resolved and have actually worsened, while the USD is not doing well either because of Quantitative Easing.

On Forex trading, Mario cited a realistic consistent 6% monthly profitability as the target of most retail Forex traders, resulting in a 100% account growth every 12 months, but pointed out that Forex trading can give you a comfortable cashflow only after trading for a significant amount of time, because it takes time and patience to learn the skill. He also pointed out that the market constantly changes and does not adapt to a trader's methodology: it is the trader who must adapt to market conditions.

"This is why analysts must stay at the forefront of breaking news and geo-political events, to best inform traders," said Mario. "Trading profitably is about consistency and risk management. You must learn how to manage risk responsibly to trade profitably," he added.

The views of Mario Sant Singh - who is Director or Training & Education at FXPRIMUS, are widely sought after in the Forex industry. His popular blog, his weekly market webinar, his daily and weekly market reports provide direct channels for some of the best-informed educational resources that new and experienced traders can access to improve their knowledge of Forex and related investment markets.

During December, the top ten Forex trading questions (click the links for the answers) were:

1. Do you expect the Liberal Democratic Party of Japan regaining power will cause the USDJPY to move higher or pull back?

2. Do regulators threaten retail Forex trading? How do they affect U.S. residents and non-U.S. retail traders?

3. Will the dovish Federal Open Market Committee (FOMC) statement continue weighing on the Dollar for the rest of 2012?

4. Why is there still an overall uptrend for the EURUSD?

5. How will the Chinese government stimulus package affect the NZD or AUD?

6. Is a 10% return per month in Forex good? What is the average return of a consistently profitable trader?

7. Mario, are there any trading skills you haven't mastered or think you can improve?

8. Can you give me a brief explanation about oscillators and how to use them in trading?

9. Is there such a thing as insurance to protect traders? Trading is a risky business and I want to be protected in some way.

10. "Buy when everyone else is selling and hold until everyone else is buying." Does this apply to Forex?

Have a new question for Mario? Then ask him online at AskMarioSingh.com, and sign up to receive Mario's Forex Answer of the Day, by email.


Mario Singh is the Director of Trading & Education at global retail Forex brokerage FXPRIMUS. He has appeared as a guest expert on CNBC more than 35 times to talk about foreign exchange markets, and is a regular contributor to top investment publications and online portals. Known as a brilliant and intense communicator with a unique ability to 'keep Forex simple' and a mission to help every man-in-the-street to trade profitably and responsibly in the Forex market, more than 20,000 people have attended his Forex trading programs. He is the only Forex trader in Asia invited to train Julius Baer Private Bankers - the third largest Swiss Bank, and is the author of the forthcoming book: How to Profit in the Forex Market: 17 Proven Strategies (Wiley Publishing).


FXPRIMUS offers retail traders a level of trade execution, service quality and fund safety that are normally reserved only for the largest investors. Serving traders in 205 countries across 6 continents FXPRIMUS combines an unmatched level of fund safety with regular independent audits of company financials and Straight Through Processing, top notch execution with tight spreads, prompt and responsive customer support, ISO 27001 certification in Information Security and an industry-leading trader toolset that includes free access to powerful trader tools and personal coaching via FXPRIMUS Coach. FXPRIMUS truly is The Safest Place To Trade.

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