Important economic factors that govern the Forex markets

Beginners seldom understand the importance of learning what makes the Forex markets function - the underlying economic factors! Foreign exchange, a financial market valued in trillions today, allows traders to profit through the exchange of currencies. And this exchange is possible only because currency prices go up and down. Without their fluctuation, prices would be stagnant and exchanging currencies would be impossible. 

There are number of similar factors that cause the Forex markets to move erratically, making it both risky and lucrative. As an adept trader, having knowledge of these factors will help you place profitable trades. 

Forex Trading Strategies

Here are some important factors that influence the Forex markets: 

1) Interest Rates: 

Every trader has to look out for interest rates. They are essentially set by a country's central bank to control investors' affinity towards their markets. If interest rates are high, the chances of investors favoring their currency go up. Similarly, if the banks feel that they need to bring down the number of exchanges, they lower the rates. 

2) Inflation: 

A global phenomenon, inflation governs a lot in Forex. When a country has products that are constantly getting hiked in value, foreign investors are less likely to invest in it. If inflation is constant, a country's currency is bound to get devalued. 

3) GDP: 

A country's GDP is used to measure the value of its goods and services. This includes government expenditure, business spending, private expenses and the overall expenses laid out by a country as a whole. A healthy GDP indicates that a country's economic value is stable and its currency will play out well in the markets. 

4) Economic Events: 

Economic events can range from elections to changes in fiscal policies - and all of them influence the Forex markets. You will have to devise your Forex Trading Strategies keeping these events in mind at all times. Novices often enter trades without any knowledge of a country's economy and end up losing big money.

5) Retail Sales: 

The strength of an economy can also be measured by retail sales. When a country's economy is healthy, customer expenditure will be consistent and even incremental at times. A constant study of this will help traders decide if a country's currency is worth investing in. 

Open a Forex Demo Account in Malaysia and gain gradual mastery over currency trading. Difficult, but far from impossible, profiting in the Forex markets will happen swiftly with our experts by your side! Reach out to WesternFX today and equip yourself with our stellar strategies and trading platforms. See your Forex trading career take to the skies - call us! 

6 Things To Keep In Mind While Hedging In Forex

Hedging is one of the most incredible Forex trading strategies. Implemented well, you will be able to cut your losses and balance them out with profits seamlessly. However, the catch here is that hedging requires a lot of research and adept implementation. 

forex demo account

Even knowledgeable traders struggle with understanding the nuances of this approach. With a good amount of time invested in learning, mastering this method won't take too long! Once you know how to hedge trades, loss management will become immensely easy and you will able to see a stellar increase in profits.

Here are 6 tips to hedge better in Forex:

1) Novices Shouldn't Try It: 

Hedging isn't a method that you can master simply by seeing someone else do it or by understanding it theoretically. A lot of practice is required to hedge successfully. To start off, try hedging trades on a Forex demo account. Once you are comfortable with demoing this approach, you can begin employing it on live trades.

2) Finding A Compatible Broker Is Important: 

Not all brokers offer the option to hedge. And not all brokers are equipped with the experience to help you hedge properly. Before you start trading, find a reliable broker.  

3) Employ Trading Robots: 

Hedging is something that happens very quickly and to manually carry it out will be risky. However, technology has developed incredibly, allowing traders today to automate their exchanges. With trading robots, also known as expert advisors, you can automate your trades and hedge safely.

4) Time Your Hedges: 

If hedging worked on all timeframes, every trader would be able to cut losses and boost profits. The catch with hedging a trade is that it has to be done across the right timeframe. If you employ this strategy without proper timeframe analysis, you will only end up losing more money than usual! 

5) Patience Is The Key: 

Hedging is the simple art of placing a trade opposite to the one you're losing. While this might sound easy to do, implementing it is very tricky and risky. You will have to wait for the right opportunity to surface, and impatience will only serve as an impediment.

6) Evaluate Your Methods Continuously: 

Everyone makes mistakes, more so when they trade Forex. This is why evaluating your methods is necessary. To perfect hedging will take time and a lot of continuous improvement. 

Open a Forex Demo Account in Malaysia today and start mastering the hedging approach. Our experts at WesternFX will equip you with a top-tier platform that augments your trading skills. Work with us today and see unrivaled success in your Forex ventures!

Why Being Patient Is Better Than Trading Relentlessly In Forex?

No trader gains a complete understanding of Forex right off the bat. A market valued at trillions of dollars doesn't reach such heights overnight! To get a piece of this pie, traders need to put in long hours of research and practice, and even after learning Forex trading thoroughly, exchanging currencies on volatile markets isn't an easy job. Several well-learned traders have lost huge sums to erratic market shifts! One can never be careful enough in the Forex markets. 

forex demo account

As a Forex trader, you will have to develop many skills, and the most important of them is patience. Critical to winning trades and climbing the Forex trading ladder, patience alone can help you avoid a number of expensive losses. When you start off trading currencies, the hunger to win and profit will be intense, and how you channel this drive is what will make all the difference. 

The profitable few are able to draw a line between passion and greed; they exercise incredible patience and only take trades that are wholly viable. An inexperienced trader on the other hand, will trade without preparation, take exchanges impulsively and employ impatiently-devised Forex trading strategies.    

Why You Need Patience To Trade In The Forex Markets?

Being patient always pays off. In a domain as intensive as Forex trading, you will be tempted to take the many trades that come your way, but none of these will return what you invest! While it remains true that when an opportunity presents itself, you should capitalize on it, said opportunity should be viable. And patience helps you land exchanges that are amply profitable! Running behind quick money, traders partake in exchanges without any sort of preparation. 

Economic shifts, political events and social happenings all play a vital role in determining how currency markets behave. This is why traders need to have patience; patience to analyze said factors, measure the viability of a trade, prepare for if and when things to south, and have the backing of solid Forex Trading Strategies! As a Forex trader, there are a number of things between you and profits, all of which will have to be mastered through skill and patience. 

While overnight victories are every trader's desire, the markets aren't lenient enough to let traders profit that soon. To master indicators, charting, trade analysis and the many other elements of Forex trading, practice and research is of paramount importance. Haste makes waste, and in the Forex markets, you always stand a chance of losing big money. So settle down and prepare for a long ride! Patience will take you a long way in Forex, towards unparalleled profits.

Open a Forex Demo Account in Malaysia today and start honing your patience! Sign up with WesternFX today and avail our world-class demo trading solutions. We will provide you with a stellar demo trading platform and give you excellent guidance. Get started today, call us!

Managing Risks While Spread Betting In Forex

A risky but worthy ordeal, spread betting can pay off very well if you know how to approach your trades. However, the catch here is that you stand a good chance at losing money, just as you do at profiting. The reason behind a majority of these risks is because of leveraging trades. Forex trading allows traders to make use of leverage, which is essentially money borrowed from brokers in order to hold positions of higher monetary value. 

However, when a leveraged trade is lost, the borrowed money is lost as well - and the cumulative sum of this is incurred by the trader. 

Forex Demo Account

This potential of losing more money than invested makes spread betting a very risky ordeal in Forex. To make good returns while keeping the losses minimal, risk management is essential. 

Here are some simple steps to manage your risks in a healthy manner:

1) Leverage Minimally: 

Leverage is truly a wonderful provision, but if you over-leverage or are very callous while working with this borrowed sum, you will incur heavy losses! Several Forex traders are able to multiply their profits by huge amounts when they leverage with caution. Always do your fair share of market research before playing around with leverage. 

2) Stay Aware Of Economic Happenings: 

Economic, political and social factors affect the currency market deeply. As a Forex trader, you will be subjected to a lot of risks stemming from these factors. Hence, the need for staying adept and being aware of what's happening around you. When you're abreast of how the currency markets are behaving and what's causing said behavior, you will be able to see stellar results in your exchanges. 

3) Plan Your Trades Thoroughly: 

Planning only one or a handful of aspects isn't going to be enough to see victories in your exchanges. Everything from the currency pair selected to the strategy chosen, to the entries/exits have to be planned immaculately.

4) Work With Stop-Loss Orders In Place: 

Always have stop-loss orders to pull you out of trades. Stop orders help you minimize losses, secure your capital and live to trade another day, by cutting you off from a trade the moment losses are seen! 

Always start off with practice - open a Forex Demo Account in Malaysia today, and learn from the bests at WesternFX! We house incredibly talented minds, who will provide you with the guidance you need to place winning trades, and the best of trading facilities. Work with proven Forex Trading Strategies and trade on award-winning platforms - reach out to us today to get started!

How To Minimize Your Forex Trading Losses In 2019?

Every trader wants to earn big and lose small, but it's easier said than done. Given how the Forex markets are scarily volatile, losses are the more natural outcome to a trade. Several traders even with a thorough plan, end up losing many a times due to the markets being so unpredictable!

Forex Trading is a profitable domain and there's no doubt about it. And the profit aspect of Forex tends to overshadow the losses. Even small mistakes can lead to big repercussions while exchanging currencies!

Forex Trading In Malaysia

Here are 5 easy ways to make sure your profits are maximized and losses are minimal:

1) Know What You're Getting Into: 

The best way to ensure you don't lose money is to know what you want from your trades. Different traders have different expectations, even if they're monetary, knowing your end outcome will help you define the methods you want to employ in order to get there! This sort of clarity is what helps avoid losses. 

2) Pair Up With A Reliable Brokerage Firm: 

Picking Forex brokers are where many struggle. In the foreign exchange markets, there are a number of brokers available today but not all are skilled. Your job as a Forex trader is to do ample research and find out which broker best fits your requirements.   

3) Start Off Small: 

It will be incredibly tempting to invest big under the pretext of winning bigger, but your start should always be small. Trying to overinvest will backfire grandly as you go plummeting into losses. No matter how much capital you have, or how lucrative a trade seems, draw the line.

4) Leverage Wisely: 

Leveraging is tricky, but very profitable when you do it right. The risks leveraging brings are massive - leveraging too much on a losing trade will leave you incurring hefty losses! However, when planned right, a leveraged position will augment your profits. 

5) Don't Treat Forex Like A Casino: 

Forex trading, at the end of the day, is no different than a career. You have to treat it with the same respect if you want to make a good winning! Many traders mistake currency trading to be a casino of sorts, following which they overinvest and lose all their money. 

Reach out to WesternFX, one of the leading Forex Brokers In Malaysia, and avail our world-class brokerage today! We understand the many complications currency exchange carries, which is why our services are tailor-made to fit our traders' needs. From the latest Forex trading strategies to top-tier trade platforms, we will equip you with nothing but the best! Call us today to get started! 

Questions Every Aspiring Forex Trader Should Ask Oneself

When you see Forex traders who mint big money on the regular, wanting to be in their shoes is a natural thought. But do you want to be a Forex trader or just a rich chap? That’s the more important question to ask yourself. There is a difference between being successful and being a successful Forex trader. Forex trading is a field that requires months of practice and experience before profits can be seen. Many novices make the mistake of getting consumed by the idea of money and delving into currency exchange with no practice! Though money is the primary motivator, it shouldn’t be the only reason you start trading.

Forex Trading

Here are some important questions to ask yourself if you’re an aspiring Forex trader:

1) Do You Have Clear Expectations From Your Trades?

A goal has to be established before you can think of trading. Wandering aimlessly and making namesake trades will get you nowhere! Everything from your Forex trading strategies to the indicators needed has to be planned thoroughly, but most of all, you have to establish what you want from your trades. 

2) Are You Willing To Spend Time Learning?

Learning today will help you earn tomorrow. Forex Trading, being the research-intensive domain that it is, requires that you spend a lot of time researching market trends, economic conditions and currency viability. If you’re in it for the long haul, willingness to learn is one of the most crucial things. 

3) Will You Treat Forex Like A Gamble?

Forex trading isn’t purely luck-based. Unlike gambling, currency trading requires a lot of analysis, research and nick-of-the-moment adapting! If you plan on treating Forex like a gamble, you will find nothing but losses in your path. Only when you respect the difficulties that currency exchange carries will you be able to adapt to them.

4) Do You Have The Discipline And Patience?

Many a trader has tumbled down due to impatience. While profits can be made in big amounts, they aren’t seen overnight. A lot of work goes in, be it on a small trade or a big one, and only with dedicated efforts can you make money. 

Once you have a positive answer to these questions and are sure that you belong in the Forex markets, all that’s left to do is avail the assistance of a knowledgeable Forex broker! With the backing of our experts at WesternFX, you will have everything from platforms to Forex Trading Strategies at your disposal. Cement your standing as a top-tier trader with our brokerage; call us today to get started! 

Forex Demo Trading vs Live Trading - Why Both are Necessary

Demo trade, live trade, this battle just adds to the preexisting pile of confusion you carry as a Forex trader. As a Forex trading beginner, traders are often confused if they should demo practice first or start trading on a live account right away. The reason behind this confusion is simple - a Forex demo account doesn't account for real-time risks, which demo traders are left unaware of. On a live account, you can place trades without the safety of a demo platform; meaning, the risks are all around you and you get to learn first-hand. Both methods have their own pros and cons, but as a newbie, differentiating between them is easier said than done!
 

Here are some points for you to keep in mind when this particular dilemma strikes:
 

Why Both Demo & Live Trading Account are Essential

Demo Trading Is Convenient When Starting Out: Beginners don't have much leeway as they start. A live trade is too volatile to learn on! There's a variety of information to be consumed and this gets overwhelming. On a Forex demo account, you need not worry about the market risks getting in your way. Trade all you like with virtual money, on a simulated environment designed to show you how the markets work!
 

Emotional Control Is Learnt Better While Demo Trading: Losses and risks are a part of Forex trading, and this is an expensive lesson when learnt. Not having the necessary emotional control can cost you a lot while Forex trading in Malaysia. Getting too scared or greedy, or confident, has led several Forex traders to their downfall! On a demo account, you'll be able to hone emotional control steadily since the entire environment is virtual, with no repercussions to fear.
 

 Live Trading Helps Manage Risks Better: While demo trading has said advantages, live trading helps manage real-time trade risks better. You can't learn risk management with virtual money - there's no risk involved in that! On a real-time trade, however, there is a plethora of risks to stay wary of and learn to avoid.
 

Trading On A Live Account Gives A Better Market Feel: No matter how much you trade on a Forex demo account, it's ultimately just a practice. To get a good grip over the markets, you have to trade live. Real-time trades give you the full display of how the chaotic world of Forex trading is.
 

Before you start Forex trading in Malaysia, you will have to decide your training method. Both demo trading and live trading are fruitful, it all comes down to preference. And at WesternFX, we have all the provisions you'll need to get started with Forex trading! Reach out to us today and we will equip you with the best of facilities needed to learn Forex thoroughly.