How To Make Money With Forex Trading Malaysia for beginners
As a matter of course, forex is a global currency exchange market that potentially reaps profits for its traders.
It is the largest financial market for traders to grow their wealth and generate substantial profits from it. It can be part of the source of passive income for traders.
However, it is not as easy as it sounds. Since forex is a fast-paced and volatile market, the potential to earn lucrative profits is high, but at the same time, it is also exposed to a high level of risk.
Therefore, mastering a forex plan and strategy is crucial for every trader to make money through it. Undoubtedly, forex is one of the best ways to make money.
How To Make Money With Forex Trading For Beginners
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Forex is not a get-rich-quick scheme, as it seems. It does not happen overnight.
A trader needs to have high perseverance and resilience throughout the trading journey.
They might encounter and face some mistakes, errors, and losses in order to successfully make money.
Hence, there are some tips on how to make money in order to be a profitable forex trader;
1. Understand The Basic
In order to be a successful trader, a trader needs to have a deep understanding of current economic trends and technical and financial analysis.
It is important for them to develop a strategic approach and navigate the forex market from time to time.
Firstly, a trader needs to learn and have a better understanding of the basic forex terms such as currency pairs, point of price (pip), bid, ask, base currency and quote currency, spread, lots, and long and short terms.
This will encourage the trader to communicate and trade well in the Forex market, and at the same time, it will help the trader plan a great strategy for monitoring their trades.
2. Choose The Right Pairs
Generally speaking, forex involves the trading of different currencies in pairs.
There are eight (8) major currencies used in the forex market.
Besides that, there are also minors and exotics in the in the classification of currencies used in the forex market.
Trader Choosing the right pairs between all the currencies exchanged can increase the profit earned from trading activities.
Thus, every trader needs to know which pair of currencies can create tight dealing spreads, high liquidity, and lower volatility to increase the chances of profitable forex trades.
For instance, EUR/USD pairs are the most actively traded in the forex market.
3. Making A Trade
There are two (2) types of trading accounts in forex; demo accounts and real accounts.
Both exposed the traders to the forex market. As a newbie, they can start making trades through a demo account.
From there, they can learn trading skills, strategies, and how it works to control and monitor the market effectively.
Once the trader is an expert in trading and knows how the foreign exchange market moves, they may start trading in the real account.
Hence, making a trade can be done in both a demo account and a real account so that they can start to make money.
4. Stay Informed
Every trader needs to register with a forex broker before they can make currency exchange trades.
The broker will give an overview and guide their traders accordingly so that they are always on the right track.
Failure throughout the trading journey may cause great losses to the trader.
As a trader, they need to stay informed on the economic trend and technical and financial analysis of every piece of data in forex.
This is because a lack of information and strategic approach obtained by the trader may reduce the chances of success.
In conclusion, deep understanding and knowledge of forex are crucial for every single trader to make money.
5. Use Tools And Platforms
Trading forex is very complex and challenging, while at the same time being associated with a high level of risk.
It is simple to say, and it is more commonly referred to as gambling than investment. In order to make a profit trading forex, a trader needs to use the right tools and platforms.
They need to make sure that all tools that they use function effectively, such as the use of a laptop in monitoring the trading graph and data, and that the platform they registered on is among the reputable and reliable forex brokers, such as Octafx and more.
Choosing the right and best tools and platforms is a critical step to starting to make money.
6. Manage Risks
Forex is very well-known but comes with high risks. Without deep knowledge, skills, and a strong foundation of trading activities, the risks of losing money will rise significantly.
Therefore, every trader needs to master and acquire knowledge on risk management techniques to manage any risks they encounter during their trading journey.
They need to continuously develop a trading strategy from time to time as the market dynamics change over time.
A trading strategy, such as financial goals for the short and long term, risk tolerance, and a trading plan, needs to be determined to manage the risks in the real future when trading.
A failure to manage the risks may result in great losses for the trader.
7. Keep Learning
The most significant way to make money is to always learn and keep learning.
As a trader, they need to educate themselves about financial markets, basic knowledge of forex, data analysis, trading strategies, and risk management.
They can learn all these things through online resources, courses, reading materials, and from professional and expert traders.
Through learning, it can help traders achieve their goals in forex.
8. Practise Before Investing
The main element that needs to be focused on is strategy. Without the right strategy, traders might frequently make mistakes and make impulsive decisions.
To create a strategy, they need to practice first in the demo account before they can start investing.
All in all, practice makes perfect. To be a professional and expert forex trader, they need to keep trying and practicing.
Don’t be afraid of making mistakes and losses because, from that, they will learn how to fix and cater to the challenges of trading.
9. Open A Forex Trading Malaysia Account
Every forex trader needs to open a forex account before they can start trading.
Selecting a reliable, reputable, and licensed broker is slightly important to start the trading activities.
The trader can choose to open a demo trading account at first, and once they are familiar with the trading activities, they may move on to the real trading account.
Eventually, traders can start making money once they open an account.
10. Deposit Funds
Deposit funds need to be deposited in the trader’s forex account once it is registered.
The deposit funds vary according to the broker a trader chooses. Traders can start to deposit their funds with a small amount of money as it is less risky.
Hypothetically, high risk means high return, and vice versa. To make lucrative income in forex trading, traders may deposit huge amounts of money.
Nevertheless, the right strategy will lead them to achieve those financial goals.
11. Start To Trade Forex Trading Malaysia
Once everything is set up well and traders are experts in trading using the demo account, they can start to challenge themselves in trading on a real account.
From there, traders can gain a profit through their forex journey.
It was not as easy as it seemed. However, with the experiences and confident managing the demo account, they will cater the real account successfully.
Thus, traders need to continuously monitor the currency exchange market, keep updated on economic indicators, and adapt various strategies and approaches that may help them earn money.
Make Money With Forex Trading Without Investment in Malaysia
Particularly, making money can also be done without involving in trading activities.
It is not necessary for anyone to be a trader in Malaysia to earn money from forex trading.
There are some ways for any individual to make money through the forex market without making any investment, such as through;
(A) Affiliate Programme
The truth is that any individual can gain money from the forex market with zero investment. One of the ways is by participating in affiliate programs.
There are a diverse of forex trading brokers available online, such as Octafx, Pepperstone, FBS, XM Market, and many more.
All those brokers offered an affiliate program for everyone to earn income from it.
They just need to promote the trading platform creatively on social media.
They will be entitled to receive commissions from traders who register with that broker through them.
By this method, money can be earned without making any investments or paying any fees.
Promoting and advertising the broker’s trading platform is an excellent way to gain extra money.
An individual who is creative in advertising and promoting skills is encouraged to register and start opening an affiliate account with the forex broker.
As a result, the commission earned by the affiliator depends on the number of traders registered with the broker’s trading platform.
In simple words, the more traders registered, the more commission they earned.
(B) Contest
There are two (2) types of trading accounts available for malaysia forex: demo accounts and real accounts.
Most of the time, a new trader will register a demo account to trade in forex, as it is a free account that does not require any investment.
It is mostly offered by the brokers. This demo account is usually used by freshmen to learn and sharpen their knowledge, skills, and experiences in trading activities, as it provides a free-risk space to trade in forex.
Upon the registration of a trading account, especially a demo account, the broker will sometimes organize contests for the trader to participate in.
Like in other competitions, the traders need to compete with each other and win.
Once they win, they will be rewarded with some amount of money.
Thus, participating in a forex contest can benefit the trader by helping them make money without investing any money.