Foreign exchange is the biggest market globally right now as it’s considered a great way to earn a secondary income. One of the emerging forex trading communities in Malaysia.
However, like any other trading form, forex requires some knowledge and homework to get into. That’s why we’ve put together five of the most important tips for forex trading in Malaysia for you.
Find a Reliable Broker
A legitimate, trustworthy broker with your back is the first thing you need if you want to become a successful trader in Malaysia. A modern, robust broker will support you from all aspects.
When looking for a broker, make sure you understand the type of trading platforms they use and the cost of opening an account with them. Additionally, always check their licenses and reviews before making any commitment.
Additionally, make sure your broker is compliant with Malaysian regulations. For example, you’re only allowed to work with brokers approved by the Bank Negara Malaysia.
Focus on Peak Trade Hours
Unlike the stock market, which follows the regular open and end of business hours, the forex market is 24/5. However, depending on your trade strategy, you might want to focus on peak trade hours to make the most of your investment.
This means converting the market hours to your local timezone to trading during the more active hours. This is especially critical for those using scalping as their primary strategy.
An opposite option is to trade low-volume currencies instead. While thinly traded currencies may have lower liquidity, they might open you up to fresh trade opportunities and give you a head start.
If you focus on news trade strategies, low-volume currencies might be your breakthrough. Otherwise, we recommend you stick with higher liquidity pairs for faster, more steady results.
Day Trading in Malaysia
If you’ve read up on popular forex trading strategies in Malaysia, you will notice many recommend you to start with day trading. And they’re right.
Day trading is the most popular trading strategy in Malaysia, if not the global market. The short positioning allows you to dodge potential price dips over the weekend. Therefore, it is less stressful and more newbie-friendly.
Keep a Record
Our last tip for you is to keep a record of all your research, learning, and trading. And this is more than just writing down currency price changes or your daily gain and loss.
You want to keep a comprehensive record that explains how each strategy and trade turned out. Consider this your forex reflective journal — it will help you become a more powerful trader in the long run.
Some Final Pointers
Do you find these forex trading tips helpful? Are you ready to start trading forex in Malaysia? If so, we have one final suggestion for you — always set a stop-loss.
A stop-loss is your hard-sell price or your lowest tolerable currency price. Once set, stick to your rule and stay calm. Many new forex traders suffer significant losses because they let greed get the upper hand.
If you still feel uncertain, try to find yourself a mentor or join a peer group. The trading community is vibrant and welcoming. It will welcome you with open arms. Now, good luck!