Binni Ong has been trading for several years now. With more than 15 years of trading experience, she is the Founder of Online Forex Master and Tflow Course, a trading course attended by more than 1,500 students worldwide.
After 15 years in the industry, her reliable trading style remains the same: disciplined trading with a hint of Artificial Intelligence (AI) to get through her trading days. She believes AI will be the key success driver in the industry of Forex in the coming years.
Swift advancement in technological development and more AI-driven models in the market will allow this future, and she is already equipped with this.
Pick her brain on the past, present, and future of Forex for your next trading plan:
You started at the age of 17 through your mother’s trading account and ended up losing some money. Was this Forex trading? How did you cope with the sudden loss of cash?
That was in Equities [Equity trading]. It was a Malaysian OTC available for trading in the Singapore stock market called CLOB. I experienced a bad loss and lost all the profits and a huge part of the capital. Naturally, I sort of gave up on trading and focused on studying (which was something I should have been doing as a student). I stopped trading to forget my losses. Yet, trading was always at the back of my mind.
What lessons did you learn from it? Can you talk a bit about how you got into this trade?
Prior to 1997, it was easy to make money in the markets. When the Asian financial crisis hit the world in 1997, the equities crumbled. I held on to my losses which is a definite no-no in any sort of trading. When the market recovered, I didn’t have the necessary knowledge to recoup some of my losses.
The lessons I learned were: ride winners, rid losers, always learn both sides of the trading spectrum – how to enter a trade sharply and how to exit swiftly — and recognise when opportunities are presented again.
Is the COVID-19 pandemic a catalyst to a potential recession? Should Forex traders play safe at this time?
No. In Forex, we can trade either direction, long or short. Hence, as long as prices can move, we have opportunities to make money. Likewise, I trade Forex, Commodities, and Indices. If there is a potential recession, then Commodities will do very well. If there is a recession, then others should join us to trade to have multiple revenue streams.
What do you think will be the outlook of the Forex market in 2021?
The US Dollar will likely continue to weaken to benefit emerging market currencies. I’m expecting the US Dollar Index to continue falling towards the 82 to 85 region. Commodities-based currencies like AUD and CAD should benefit if we are heading to an inflation-driven market. I also think that a 30-40% correction in NASDAQ should present a good buying opportunity.
Is there a new generation of traders now?
I think a new generation of traders is evolving not only from the pandemic but from the evolution of technology. In Forex, Commodities, or even Crypto, there is already an existing wave moving towards semi-automation or full automation. Many traders are relying on some form of automation to help them manage their trade or provide trading ideas.
For my team, we have already progressed towards semi-automation (we can do full automation but decided that it is still better to have some human involvement). Our trade decisions and trade management are automated, thus, removing the randomness and human emotion.
You talked about one needing a very strong technical foundation to be a Forex trader. Can you explain?
A trader needs to have a set of methods or strategies which suit his/her mentality or trading style. Many unsuccessful traders I met have some common traits. One of those is that they jump around different methods, trying to search for a holy grail. In doing so, they often get mixed up about what they are taught. Their technical foundation became so weak that it is affecting their psychology and trade management.
How important is it to develop a trading style? How can one go about having one?
I think the easiest way to develop a trading style is to modify existing successful trading styles. It takes a long time to develop one (from my experience).
I believe in trading for longevity, which means that any trader should aim to trade for profit but not at the expense of their health and happiness. Thus, my trading style is not time-consuming and taxing. I trade every four hours and look at my charts near the end of every four hours. This means that on any given day, minus the sleeping time, I look at my chart three times only.
I have outsourced most of my trading including trade management, which requires a lot of emotional stress, to automated trading already.
Has the landscape of Forex trading changed at all since you began?
Yes. We are now seeing trading ranges of many Forex pairs shrink. For example, 10 years ago, a day movement of EUR/USD can easily be 100 to 150 pips. Yet, it is common now to see the EUR/USD moving only about 40-60 pips a day.
There are many V-shaped reversals too. It has to do with many algorithms trading in the market. When a particular movement happens, it moves quickly because many algorithms are probably using similar formulas, thus, prices are driven faster towards their target. This causes a trading range to be easily exhausted and for the price to reverse quite fast. However, we have also designed trading systems to counter such changes and our trades are doing great.
What currencies are you betting big on post-COVID-19 Pandemic? Has COVID-19 had any impact on the Forex landscape? Will the pressure remain high on the USD?
AUD. I bought into AUD/USD around 0.62-0.63 in 2009 during the US financial crisis in 2009. During the pandemic, I bought into AUD/USD again around this level and have been accumulating since. If there is really going to be a commodity super-cycle, I think that AUD will continue to rise.
How important then is it to go for a reputable broker? How do customers go about identifying them?
I have some students who went for brokers who provided them with huge incentives and bonuses. Eventually, the students faced huge difficulties with the withdrawal of their original funded amount because of the conditions attached to receiving these bonuses.
It is important to go with a reputable broker because they mean business. I always make sure I can withdraw my money and my profit from a broker consistently. This is the basic test I always apply.
What advice would you give to new customers entering the trade now?
Many new traders are lured by “easy money with trading” or by promises made by ‘gurus’ on one’s trading success. Being profitable consistently is not easy though. If new traders are to start trading now, it would be good to follow someone who has been successful for some time already. Of course, when looking for a broker, find a reputable broker, otherwise one might not even be able to withdraw his/her capital.
Trade psychology – how critical is it for a trader to develop this?
It is very important. Trade psychology is critical in deciding whether a trader can be profitable over the long run. More importantly, we trade to provide us with more money. You don’t want to make your money by being emotionally and psychologically drained.
What should the top two or three main priorities for a brokerage to succeed? Is Blueberry Markets a choice of broker to work with for you?
The main priority should be to be customer-oriented (be ready to solve customers’ problems), honest in trade-related matters, and financially stable (be able to allow withdrawal always).
I like that Blueberry Markets is very customer-oriented. They are ready to help their customers. Of course, it helps that I am always able to withdraw my money.
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Usually, when customers have issues with their trades, they mostly blame the broker and think they went wrong with their trades. My team helps to check on our students’ trades and help them understand what had happened to their trades. Hence, it is very important for customers to choose the right broker to avoid such issues. If such issues happen, then there is a point for discussion and mediation.
Customer care is very important. I would think that all traders want to make money without much hassle. As traders, we want every possible advantage we can have. Blueberry Markets is just superior and outstanding in its customer care.
What are the top issues that new Forex traders must navigate through when starting out?
Many new Forex traders started without defining what kind of trading style suits them. Initially, they are also making quick money (perhaps because of beginner’s luck?).
I suggest that traders identify and define their objectives clearly, including trade objectives and scope, such as what kind of trading style is suitable to them.
What is the age profile of your followers? Which age group is the most enthusiastic to trade? What kind of backgrounds do they come from usually?
They are of all age ranges – from 20+ to 60+. I have students who are more than 70 years old too. There is no one age group that is more enthusiastic than the other. Many of them wanted a consistent profit and a healthy lifestyle. They want to have a second income.
How do brokerages from different countries work? Do you deal with brokers from other countries too? How is Australia placed on the global partnership map?
I worked with many brokers based in Singapore, Australia, and the UK. In terms of time zone, language, and reputability, Australia is one of the top countries with a strong regulatory framework.
How critical is an education in the Forex space? Do you have any tips for people starting out now?
It is the most critical part, I would think. Education equips any trader with the required skills and knowledge. There are many methods and strategies out there. Find one that is suitable for you. I have students who have explored many methods but ultimately settled to use The Alien Wash strategy that trades into Wash and Rinse (fake moves) in the market. The method aims to catch an explosive movement after a fake move.
What are the top things to watch out for in this space right now?
With technology development, there are more and more AI-driven involvements in the market. I have observed that the price range tends to be easily exhausted and price reversal tends to be abrupt. Trading is no longer the same as it was a decade ago. There will be a need for more automation and soon enough, more traders will adopt some form of automation.
For us, we are already equipped with a certain form of automation. With that, trading Forex becomes a more leisurely job for us because we outsource a huge part of trading, especially our emotions to machines.
Binni Ong remains to be one of the most sought after Forex experts across the world. And with her unique take on Forex by embracing AI and automated systems, it’s no wonder why students fly from overseas just to learn from her.