18 Jan Forex TRADING IN MALAYSIA – WHAT YOU MUST KNOW TO TRADE?
Trading with Forex for someone who is completely new to it in Malaysia can often be quite a tricky task. The process of trading forex can be also be quite a formidable task, especially if you’re a beginner and have no idea about technical analysis nor what are the skillsets that one should have in order to be able to trade forex profitably in Malaysia.
However, don’t let that put you off to get into the world of trading. Trading be it in forex, binary options or CFDs etc is one of the surest and quickest way in order to grow your health many times over in Malaysia. In fact, there are quite a few local millionaires who have made their fortunes solely by trading forex or binary options in Malaysia. The main reason behind the struggles of most newcomers to trading forex or biabry options is due to them underestimating the importance of having some education or background knowledged regarding the trades being executed. It also pays to have solid knowledge in Technical Analysis (TA) and being able to identify and use key indicators such as Bollingers Bands, Relative Strength Indicator (RSI) etc to be able to identify and spot trades that are primed to be profitable.
Most beginner forex traders come into the world of trading with unrealistic expectations and expect to make returns of over 100% of their capital invested in a very short period of time, often these people also do not have the background knowledge nor have they put in the time required to understand the basics of forex trading profitably. Another common challenge most newbies face in the world of trading, is that they struggle to keep control over their emotions thus indulging themselves in risky trades that push them to behave in an irrational manner – simply due to unrealistic expectations and greed.
The increasing rate of forex trading in Malaysia has led to an abrupt increase in the number of newcomers into the world of forex trading in general in Malaysia. The major reason for the influx of newcomers is mostly the huge sum of profit that stands to be gained from being able to profitably and consistently trade forex and binary options online. Some of the common issues that face newcomers to the world of forex trading in Malaysia are as follows:
What is the Forex market?
The forex market is the abbreviation of the foreign exchange market. Its other name is FX market. It is basically a type of market which conducts over-the-counter foreign currency exchange. This is where the exchange of the world’s money takes place. Several players take part in the trading process in the Forex market. The players usually include central banks, commercial banks, institutional investors, and multinationals.
The retail traders access the forex market by using a CFD and Forex broker (typically online). They make money by the process of selling or buying currency pairs. The currencies used in the process of trading are always quoted in the form of pairs such as the EUR/USD currency pair.
How to open an account for Forex trading?
The easiest method to start trade with Forex in Malaysia in a legal manner is by using one of the international forex brokers which are approved to operate in Malaysia and also offer you the option to maintain an Islamic trading account. These simple steps can be followed to opening a forex trading account in Malaysia for you to get started today.
- Get your trading account opened with a reputed broker who has a good reputation in the market. (We recommend IQ Options which is one of the leading forex abd binary options brokers in Malaysia and worldwide)
- Complete the process of KYC (Know Your Customer) in order to make account functional and start your trading journey.
- Deposit the required amount of margin as requested by the broker. You can start trading forex with IQ Options for under RM 50 (USD 10) – which makes it very affordable for complete beginners.
- Execute forex or binary option trades profitably using a proven system that provides results.
Different styles of trading:
The different methods of trading methods that can be used along with the main styles are:
- Day trading- It is considered one of the most aggressive as well as active style of trading. All the trading positions will be shut just before the trading session ends.
- Scalping- Scalping is mainly about taking the advantage of the tiny changes in the price which often occur while selling or buying and selling. It usually occurs just within a few seconds or a few minutes. However, the traders may have to hold a certain position for several hours. It is considered to be a very short-term method of trading methods.
- Swing trading- It is considered to be a long-term method of trading methods.
Importance of trend in Forex trading?
The trend is one of the popular techniques used for Forex trading in the Forex markets in Malaysia. The strategy of trend follows mainly 3 assumptions i.e., the prices discount everything, there is a repetition of the history, and the prices move according to trends. Therefore, whenever a movement of the market tends to take place of a given currency pair, the exchange rate also moves.
What are the benefits of Candlestick Analysis?
Candlestick analysis is one of the popular Japanese methods of performing chart analysis. It is still considered one of the popular methods of reading charts. They are mostly used to make better decisions while trading. They help in the analysis of prices. They help decide the checkpoints of the markets of when and where to exit or enter. Candlestick analysis help in the process of fine-tuning the timing of entry and exit of the trader.
Candlestick analysis is also typically known as Technical Analysis (TA) in which various indicators such as Bolinger Bands, Relative Strength Indicators (RSI), Moving Avergae Convergence Divergence (MACD) and various other indicators are used to assess and predict the movement of a particular chart. This can be applied to forex or binary trades as well in order to execute trades that have a higher chance of being profitable and that goes in your direction, Trading profitably in general in any instrument would require that you have a fair bit of background knowledge in this topic. You can learn all about candlestick analysis and technical indicators in IQ Option when you sign up for a FREE Trading Account.
Trading in the Forex market with Forex has grabbed huge popularity among the newcomers, mostly because it is very easily accessible to anyone. If you have the skill and knowledge to use the leverage and perform the margin trading in a wise manner, no one can stop you from making a huge profit by trading currencies. Learning the art of Forex trading isn’t very complicated as it seems. It all depends upon what kind of a trader you are. Try to make a personality of your own, and construct your own trading strategy and follow it accordingly. Try to trade more and more, because practice makes a man perfect. Do not fall for your emotions and be extremely committed, dedicated, and patient in order to learn new things about trading techniques and strategy improvements. These basic techniques will help you sharpen up your skills, and will provide you long-term benefits as well.