Forex Trading Malaysia: 5 Key Points to Remember in FX Transactions

Categories: Forex Trading  

Tags: forex  forex trading  forex trading Malaysia  forex broker Malaysia & SEA  

Publish date: 2023-1-6

Many experts believe that forex trading is a business. Because it is similar to business. Just like doing business, you have to buy and sell things here. But the difference is that you have to buy and sell transactions, not commodities and raw materials. Therefore, it is like a business and should operate like a trader. Today I will mention some small things to remember when dealing in foreign exchange. The author will explain in detail for you. I hope you will find this article helpful in your trading investment. If you have any doubts regarding this article, please share your thoughts. Who knows, your suggestion may improve many people's understanding of foreign exchange trading in Malaysia.

Trading positions

Trading positions are important because they define how much you will gain from trading. It also defines whether you will profit or lose from a particular transaction. But what does trading positions mean? This means the time of the transaction you are executing. For example, the specific market you are interested in is falling. After a period of time, it reached the support level. Then you decide to buy a deal, assuming that the price will rise. Unfortunately, the price subsequently fell and you lost some money from the transaction. If you can wait a moment until the market fluctuates again, you can make the opposite decision and sell the trade instead of buying. Therefore, please try to analyze the market to correctly position your transaction.

Make your technical analysis simpler

There are essentially countless technical analysis methods that may be used to analyze a chart. But more isn't always — or even often — better. Usually, taking into account an almost unlimited number of indicators just serves to complicate matters for a trader by increasing confusion, doubt, and indecision and obstructing the trader's ability to perceive the larger picture.

A relatively simple trading approach—one with just a few trading principles and little indicator consideration—tends to be more efficient in generating profitable transactions. In fact, we are aware of one very successful forex trader who uses trading robots or expert advisors (EAs) and who withdraws funds from the market almost every single trading day. This trader overlays ZERO technical indicators on his charts, moving averages, relative strength indicators, and certainly no trend lines.

His straightforward market analysis only needs a standard candlestick chart. His trading method involves trading high-probability candlestick patterns, such as pin bars (also known as the hammer or shooting star patterns), that occur at or close to support and resistance price levels that may be found by merely observing the market's prior price action.

Check out all of FXCM's free Trading Insights to learn more.

Understand market sentiment

Market sentiment describes how generally investors feel about a specific security or financial market. It is the mood or tenor of a market, or the psychology of the crowd, as seen in the activity and fluctuation of the prices of the securities traded in that market. In general, rising prices represent a bullish market, whereas declining prices represent a bearish market.

Understanding market sentiment is one of the most difficult tasks in the Forex Trading Malaysia industry. New traders never attach importance to emotional analysis. But always remember that emotional analysis is more powerful than technical and fundamental analysis. If you can correctly understand the market sentiment, you may easily earn huge profits in the long run, but just as easily create huge losses. In order to develop your emotional analysis skills, you must work hard and trade the market for a long time.

Reduce risk

What are the risks in the trading business? This is your investment in each transaction. Since trading is really uncertain whether you will make money, you must protect your funds. Risk management is a good way to achieve this goal. You will lose money here, especially when you are a new trader. Moreover, when you lose a transaction, you will lose money invested in that particular transaction. So why not reduce the amount of money we invest in a single transaction? In this way, if we lose the transaction, we will lose much less, right? Don't worry though; you can still bid for more hands than you invested in each transaction. Additionally, it is possible to use leverage when trading. You can use it to buy or sell transactions that are more than 100 times larger than their input.

Due to the new risk exposure, the risk of leverage trading is higher than that of traditional derivatives. Potential profits and losses are amplified. It is recommended that you choose a reliable forex trading platform, which can provide you with a variety of product risk management and powerful technical analysis tools. These tools can be used to help reduce transaction risk. These tools include "take-profit" (that is, closing when a certain profit level is reached), "stop-loss" (limiting risk to a certain value), "guaranteed stop loss" and "mobile stop loss".

Like any trade, you must remember a golden rule: Never trade more than you can afford to lose!

If you want to test your trading strategy and view your operations in the real market in real time, you can try a zero risk demo trading account to let you practice more before investing in real currency transactions.

Self education is necessary

To become a better trader, you need to educate yourself again and again. However, this does not mean that you have to learn the same thing many times. You can include many techniques in your trading strategy. Such as picking and resistance point techniques, Fibonacci charts, and timelines for understanding future trends in the market can take your trading performance to a new level. After these, you will find more, and all these are organized according to the expert transaction level. So use these skills to educate yourself and move on.


So far, you have learned the most important factors to become a successful trader. You must keep these tips in mind and conduct market transactions in a disciplined manner. If you listen to your emotions, you could lose a lot of money.

Like every other form of financial ecosystem, the forex market has its own unique characteristics. To trade them profitably, a trader needs to acquire these qualities over time, through practice, and through study.

Obviously, there is more to learn about trading in the forex market, but that is a great place to start. If you keep these fundamental rules for profitable FX trading in mind, you will have a distinct trading advantage.

[Disclaimer] The articles above are purely personal opinions and are not intended to be investment advice. Only for the purpose of mutual learning and sharing. There is no express or implied warranty regarding the accuracy or completeness of the above-mentioned information. Anyone who relies on the information, ideas, or data contained in this article does so entirely at their own risk.