Becoming a Successful Forex Trader in Malaysia: Essential Tips and Strategies

With broad access to online brokerage services, everyone can become a trader these days. However, few people actually find success in FX. The reason might be that many of those who try trading skip some essential steps or simply do things wrong. Learn about the best ways to become a currency trader in Malaysia from this article.

What is a Trader

Trader is a person who buys and sells securities (goods, currencies, or shares) with the aim to profit from their price change. Forex traders specifically buy and sell currencies in order to speculate on the future value of those currencies. It is worth saying that traders do not simply buy and sell one currency or another randomly trying to guess what its price will be in the future. They conduct holistic research to figure out where the price is likely to move next. The research often includes studying the past behavior of the currency (technical analysis) as well as examining economic and financial factors that can affect the currency’s price (fundamental analysis).

Define your Goals in Forex Trading

As simple as it may sound, the first thing one should do is to set realistic goals. Many beginners fall prey to the idea of instant enrichment. But the truth is nobody becomes a millionaire overnight trading forex. Sometimes one needs time and a few trades even to get the first profit. Thus, begin with simple goals such as learning to place a trade and getting profit from it. With this consistent step-by-step approach, you will not be disappointed.

Find a Reputable Forex Broker in Malaysia

Retail trading is possible due to a network of online brokers, which resemble each other in their functions but often differ in the conditions they offer. Trading conditions may play a crucial role in your results. So when looking for a broker to trade with, ask yourself the following questions:

• Does the broker have a good reputation? Before signing up with it, read independent reviews to get an idea of the quality of services it provides.
• Does the broker have deposit/withdrawal commissions? Brokers profit from commissions and spreads (the difference between buy and sell prices). As a trader, you are interested in sharing as little of your profit as possible. This is why it is better to find brokers with the tiniest or no commissions/spreads. Calculate these commissions before signing up with any broker.
• Does it take a lot of time for the broker to execute a trade? Trading is about a quick reaction as the quotations instantly change. Nobody wants to miss a profitable opportunity just because the trade isn’t executed fast enough. So, slow order execution is a fair reason to switch to another broker.
• Does the broker offer reliable 24/7 customer support? It is important that any issues you have are solved quickly. So look for a broker that can do it for you.
• What trading instruments does the broker offer? Practically all FX brokers offer major currency pairs. But why not go with more options for a profitable trade? The wide variety of trading instruments gives a trader more options to choose from.

The Best Way to Learn Forex in Malaysia

There is no success without learning. You can learn trading for free by reading articles online, watching YouTube videos, or refer to our Education section to pick up the FX basics. Another important point in your education is the follow-up of what is going on in the market. You can find the updates for 4 major currency pairs as well as trading recommendations in our daily forecasts. For people who want to seriously dive into FX learning, there are plenty of online courses that teach all aspects of trading. Do not miss any opportunity to learn.

Demo Trade First

All the theoretical knowledge is of no use if it doesn’t go hand in hand with practical experience. To avoid financial loss during trading, you can open a demo account. Trading on a demo account doesn’t require a deposit but allows you to open trades and observe the real-time market situation as if you had a real trading account. Basically, it’s the same as standard trading, only you trade virtual money. The combination of theory and practice is the only effective way to master anything, including trading.

Build a Schedule

Trading at a specific time every day is much more efficient than trading chaotically. Plus, even though one can trade at any time on weekdays, there are especially favorable hours for trading. And it’s recommended that you take advantage of them. For those living in Malaysia, the best time to trade currency pairs with USD in them starts at around 8 pm (GMT+8). This is when the North American trading session starts operating.

Read more: The Best Time to Trade Forex in Malaysia

Trading Strategy

A strategy in forex is your guiding star in the market. There are dozens of different strategies available online. However, not all of them are equally good for everyone. People choose and adjust strategies based on many factors, including their level of expertise, goals, size of capital, the market situation, etc. For those completely new to forex, it is best to start with something simple, such as trading support and resistance levels.

Read more: Best Forex Trading Strategies for Beginners and their Importance

Control Your Emotions

It is believed that there are two enemies in the way to successful forex trade. They are called greed and fear. Traders who succumb to those emotions tend to lose money. The only way to avoid these mistakes is to have a plan and to stick to it no matter what. Whether you have an idea of waiting for a bit longer as the price keeps rising even after the planned exit point is reached or an idea of exiting a trade because the price has made an abrupt move against your prediction, deviating from your plan is unlikely to be a good idea. In trading, only emotionless decisions lead to profitable trades.

Final Words

Forex trading offers a very exciting experience and sets no limits on the size of profit. This is what makes trading attractive. However, not everyone finds what they look for. It may be because they ignore the essential aspects of successful trading: discipline, strategy, and continuous learning. If you ask experienced traders how long they needed to learn to trade, they are likely to answer they have never stopped learning. Take it as an example and make education a part of your daily routine.

About JustMarkets

JustMarkets is the world’s trusted broker that offers 180 popular trading instruments. By having a trading account on JustMarkets, you benefit from advantageous conditions, including high leverage, low spreads (from 0.0 pips), as well as commission-free deposits and withdrawals. And if you have any questions, there is a helpful support team working round the clock to ensure you have the most convenient trading experience.

Try your hand at currency trading by opening a demo account on JustMarkets. It’s a quick and risk-free way to master trading in the most liquid financial market. A practice account will help you learn trading basics and develop a strategy before investing money. Start trading today to take care of your future tomorrow.

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by JustMarkets, 2023.04.24