Forex News

5 tips for mastering forex trading in Malaysia

Forex trading refers to trading involving selling and buying various global currencies of the world. This type of trading is growing at a very rapid pace in Malaysia and many other countries of the world. Forex trading is making steady progress among Malaysians who want to give a boost to their income. More and more people in Malaysia, in fact, are fast entering the trade and doing it on a continuous basis in order to gain profits from it.

Forex trading in Malaysia is at the helm of popularity today and offers great opportunities for novice traders considering their burgeoning interest in it. One good deal is great enough to make you rich overnight, although it is essential to make efforts on your own to a certain level. To be on the losing streak is most likely if you try to sidestep getting into the basic rules of forex trading. With this in mind, for all novice traders, it all makes full sense to gain insight into how it all works so that they can invest in it confidently and without dragging their feet. 

Developing a Trading Plan 

Successful forex trading hinges on having an effective plan for dealing with these hurdles, a goal achieved through utilizing certain tools such as spreadsheets and technical analysis software packages. Trading without the proper plan can result in losing a lot of money and time and bad trading habits.

Key components of a trading plan:

The nitty-gritty of a trading plan is to make an organized, cost-effective, and safe investment. Although the forex market is subject to vary, it would be wrong to construe that it cannot be evaluated effectively. Evaluation is feasible by putting a variety of tools into effect. Some of the key components of a trading plan are as follows:

  • Spreadsheets: spreadsheets help to monitor trades and track performance. They can be used to keep track of trade results and calculate pertinent stats such as profit margins, drawdowns, etc.
  • Technical Analysis Software: This software will allow an investor to apply technical analysis techniques and create indicators that will assist in analyzing market trends.
  • Major Forex Market Factors: A lot of factors go into market behavior. These factors can be categorized into several different groups:
  • News: The main factor that determines market behavior is news. In most cases, the news is considered a driving force in the markets, as it provides valuable information about the current and future state of an economy. 

Understanding the Market Analysis 

When it comes to ensuring the popularity of the forex market in the world, the sky’s the limit. This trading type involves trading various foreign currencies by traders. In general, however, there is an involvement of two foreign currencies, for example, the UK pound and the Danish krone. 

Alternatively, trading may also take place between various other foreign currencies. In general, anyone can buy and sell them – there are simply no restrictions placed on this trading type at any point in time. Since the forex market is volatile, suffice it to say the value of currencies is subject to fluctuation continuously. As a forex trader, buyers invariably look for the best opportunity to sell the currency at the most favorable price possible, whereas sellers often look for the best time to sell their currencies at the lowest possible rates, enabling you to gain profit from trivial movements in the market.

Technical vs. Fundamental Forex Market Analysis

Technical analysis is the study of price movement based on past patterns, trends, and anticipated future movement. Fundamental analysis, alternatively, surveys the economy and political state of every country to figure out where the movement in currency rates could result in. It is still debatable among trading experts as to which type of analysis is better. In general, both techniques are instrumental in resolving whether a stock or an index is getting over-purchased or less valuation.

Learn About Risk Management 

Risk management is a key facet of forex trading. The forex market is both rewarding as well as unrewarding depending on its performance. However, in order to maximize your profit in the forex market, you have to be aware of the associated risks along with their solution and measures. If you lack sufficient funds, the odds are very high for you to recover from your losing trades owing to less time.

In general, two types of risk management strategies are used in forex trading. One of the strategies is stop-loss, which is instrumental in cutting down losses by setting a price level at which it is best to exit a trade. The other strategy is called the trailing stop, which is used to lock profits on winning trades. This means that you continue to buy or sell as long as your trade exists and exit when it reaches a specific level of profit.

When trading in forex, you need to identify your risk on every trade. Risk management can be implemented by using stop losses and take profits for excessive losses and lock profits and trailing stops for excessive gains. In fact, both systems are important for the traders and beneficial to their trading results.

Stop losses and take profits can be set manually using a stop loss order in a trading platform. Alternatively, they can be estimated automatically by calculating the maximum risk. For example, a typical stop loss level is 1% above the high of the open price. However, options traders usually have stops at break even when they have covered all their positions.

Choosing the Right Broker 

Forex brokers in Malaysia are typically either regulated by MAS or are not regulated at all:

  • Regulated brokers hold a good reputation for being on the up-and-up and for offering better customer service than their unregulated counterparts do.
  • Unregulated brokers include those operating from countries like Malaysia which only have light regulation over forex activity, meaning they don’t have to follow strict rules as they do in Europe and America.

Criteria for choosing the right forex broker:

  • A reputed Malaysia forex broker will tell you how good their spreads are. A broker lets traders stay aware of what they can buy a currency for and for what they can sell it. They should have a professional website, not a blog with pictures of business cards and leaves as backgrounds. Look for brokers who have proper online trading platforms, too – not just mobile apps or email platforms.
  • Look at the difference between the bids and ask prices for currencies – this is called “slippage .”The greater the distance between these prices, the greater your risk of losing money because of poor pip value execution by your broker.
  • Be licensed by MAS.
  • Have an office in Malaysia to ensure capital controls and anti-money laundering are followed, as well as the ability to deal with investor disputes in person
  • Pay a license fee for every product offered and an annual fee for the privilege of operating in the country. These fees are set by MAS.

Keep Reading

Questions That You Should Always Ask Forex Broker

Practice with a Demo Account 

Forex accounts offer a virtual forex trading platform designed to replicate real-life trading conditions. Forex demo accounts also offer a learning environment to help traders hone their skills while allowing them to trade on pre-set market conditions without risking any actual funds. They can learn how the markets work in various geographical regions, what currency pairs are available and when they trade, and the risks associated with different investment strategies. By taking advantage of a forex demo account, you can learn how the market functions before risking any real money!

Steps to using a demo account effectively:

  • The first step to using a forex demo account effectively is to make sure it’s being used for the right reasons. While some traders treat it as a two-week test drive of their new car, others will use it as an opportunity to hone their skills or practice their trading strategies. It all depends on why you are opening a forex demo account in the first place.
  • The second step to using a forex demo account effectively is to become familiar with the trading platform you are using and how it works. Many successful traders say that “practice makes perfect,” but these same people will tell you that this practice should only be done after you have studied your strategies and indicators carefully until you understand them completely. This is why using forex demo accounts is not enough to become a successful trader.
  • The final step is to choose the best forex brokers that offer a demo account. Try out the trading platforms and sometimes even the customer support before you make your final decision.


Forex trading in Malaysia is easier if you follow the quick tips. You just need to know the individual technical analysis, how each type works, and choose the right Malaysian broker. Forex trading in Malaysia can help you earn a lot of money given that the Malaysian currency vacillates very much in general, it goes up or down by 2% on a daily basis.

This makes Forex trading in Malaysia a very available and cost-effective trading for all new Malaysian traders ready to take on risk. When you know your investment has gone up, you have the opportunity to gain profits! Given what is said above, forex trading is worth taking up! As long as you have enough information about this topic and follow the aforesaid tips, you can really make forex trading in Malaysia a real success for you.

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Catherine Johnson

About author
Catherine Johnson is a Financial Education Instructor and a finance writer. She writes finance blogs and guides women to be financially independent. She also worked as a freelance finance writer.
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