Top 7 Money Management Tips for Forex Trading Beginners

To succeed at Forex trading in Malaysia, you will have to implement an approach that is as defensive as is offensive; the latter indicates towards aggressive profit-hunting, while the former indicates money management. A field as volatile as Forex can reward you tremendously well, and in the very next instant, empties your account completely! While a rash trader chases money, the wise one prepares for tomorrow. Over time as discipline and patience become a part of your system, your approach will reflect these attributes.
 

A strong Forex trading plan will always have ample room for risk and money management. Protecting your capital is more important than making money while trading currencies. When you start taking measures to save your capital and take educated risks, money will find a way on its own! 

Here are 7 capital management tips that work wonderfully well:
 

Money Management Tips for Forex Trading Beginners

1) Be Patient With Trends: Trend trading is one of the most profitable Forex trading strategies to implement while Forex trading in Malaysia. Given this market's volatility, trends will form frequently. It is all about riding the right trends and riding them long. This requires a thorough understanding of trends. With ample fundamental and technical analysis, you can speculate possible trends well enough to capitalize on them. 

Instead of banking on shorter price movements, exercise some patience and let the large trends carry you ahead.
 

2) Don't Follow The Success Ratio: The win-loss ratio can be counter-productive while trading currencies. Several traders rely on this ratio to calculate trends. The fact remains that having more lost trades doesn't mean you haven't made more money. During a period, watch the charts keenly to catch large trend movements. When you follow the win-loss ratio, you fall for the image of more losses happening, and hence are unable to cash in on the bigger trend waves. 

Through analysis alone, you can catch a profitable trend and capitalize on it well.
 

3) Take Educated Risks: There is a difference between risking everything, and risking what you can afford. This is why Forex trading professionals follow the risk-reward ratio, which says that no more than 2-3% should be risked per trade. This rule equips you mentally and physically for a trade. Risk money that you can live without. Several traders are blinded by the disbelief that more investments equal more profits. It is definitely not so. 

To be put mathematically, for attaining a profit of 70%, 30% has to be dedicated for losses!
 

4) Calculate Your Risk Tolerance: For a trader with $10,000 to risk $20,000 would be a foolish move. Risk tolerance is directly proportional with profits as is with losses in Forex trading. A small risk will mean the profits made are small; similarly, larger risks will have a chance of bringing in larger profits but also result in larger losses. Depending on how much you can, or are willing to lose, you can risk aggressively, moderately or conservatively, with the moderate and conservative approach being more balanced, and the aggressive one being extremely risky!
 

5) Margins Shouldn't Govern Your Trade Calls: An increase in margin will allow you to capitalize on higher positions that your initial investments will allow. However, as an adept trader, this shouldn't be a factor you should take into account. Allowing your trade decisions to be influenced by capital will lead to an imbalance in performance.
 

6) Different Trades Require Different Strategies: From one currency to the other, and one timeframe to the other, the Forex trading strategies that fits best will vary. A simple reference for this is the fact that scalping works well only on short timeframes, whereas swing trading and trend trading work best on longer timeframes. Adopting the same trade plan across multiple grounds will seldom work in your favor. Depending on the nature of the trade, employ varying strategies. 

Also, keep in mind that never jump-change strategies midway through trades!
 

7) Limit Losses With Orderly Stops: Stop-losses are the key to keeping losses at a minimal. No matter how easy a trade may seem, a stop order must be placed to prevent last minute crashes from throwing your trade off! These mechanisms are an essential element while Forex trading in Malaysia. By keeping a stop at a point, you get withdrawn every time the price falls below said point, hence keeping your capital safe while cutting out any chances of loss! Newbie traders fail to keep in mind the volatility carried by currency markets and end up making trades without any stops. 

Remember that the stop-losses should be calculated and kept; random placement of this order can keep you from making profits altogether!
 

Malaysian currency markets are seeing a rapid growth in magnitude, and now's the right time to start your career in Forex trading in Malaysia! Call WesternFX today and kick-start your currency trading journey. Our professionals will equip you with the most lucrative of strategies, give the best platform to trade on, and provide unparalleled Forex trading money-management assistance. Reach out to us today, and scale the starry heights of Malaysian trading markets!

A Step by Step Guide to Use Cаndlеѕtісk Forex Trading Strategies

Candlesticks are a type of price charts, used to identify the highs, lows, opening and closing prices of a financial commodity for a particular time period. Originally employed by Japanese rice traders hundreds of years ago, what started off as a means of tracking prices in rice markets has today become a tremendous indicator in various commodity markets. 

By studying the patterns and sequences of a candlestick, the future price movements for assets can be gauged while Forex trading in Malaysia. While they do indicate a certain movement in the nearing future, there is no guarantee that this method works all the time! This is why candlesticks are combined with other indicators and Forex trading strategies to derive only the useful signals and filter out unnecessary ones.
 

For most candlestick patterns, both bullish and bearish trends can be seen. 

Here are 4 predominantly seen styles to use Candlesticks in Forex Trading: 

 

Tips to Use Candlestick Pattern in Forex Trading

1) Kicker Pattern: A reversal signal that is rarely seen, the kicker pattern is incredibly aggressive and indicates major trend changes in price charts. Like many, kicker patterns see bullish and bearish variations. The latter occurs after a downtrend, while the former occurs after an uptrend. All in all, a two bar pattern is seen, with a long down candle followed by a long up. Its rarity scales higher from daily charts to monthly, with day charts seeing the most action.
 

2) Engulfing Pattern: Contrary to the kicker, engulfing patterns are seen frequently and are another example of a strong reversal. Comprised of a dual pattern approach, these are said to be one of the most effective in Forex. The name is derived from the occurrence when the second candle (latest at that instance of time) engulfs the candle coming before it. This indicates that the market is seeing more buyers than sellers, or even the opposite.
 

3) Morning Star: This is a three-candle pattern formed on a down move. Initially, a big bearish candle is formed which defines the down trend. Following this a small candle births, and this pattern is closed by a large bullish candle. Two extremes of a trend are covered, with a bearish initiation and bullish termination.
 

4) Evening Star: A mirroring of the morning star pattern gives the evening star! This trend is spotted near rallies and is also a three-candle formation. Much like defined, being a mirror image, its first candle is a large bullish one. This is followed by a smaller candle, and the sequence completes with a large bearish candle.
 

5) Doji: The Doji is incredibly easy to spot and has its opening, closing price very close to each other. Typically this representation can be perceived as the end of a buying uptrend and a selling downtrend. Though they are neutral patterns, after a long buy/sell period, these prove to be significantly more important. The Doji typically appears in "V" patterns like the star patterns.
 

6) Abandoned Baby: A candlestick used to signal reversals, the abandoned baby is rare but extremely reliable. Pairing this up with other indicators like RSI and MACD, you can get sharp results. Like star patterns, the abandoned baby is also a three-candle formation. It starts with a large downtrend-indicating candlestick, followed by a Doji. At the end lies a large white candle that indicates a change in trader sentiment.
 

7) Three Black Crows: Known to have an accuracy of over 75%, this pattern is used to predict a long decline in price movements. Three consecutive black candles form, indicating the birthing of a long-scale downtrend. When bears take over the bulls, the black crows form and this means traders have to brace for a downtrend.
 

Why You Should Trade Candlestick Charts:

1) Precision in Detail: Conventional charts carry no magnitude in their depiction of a trade. Candlestick patterns, on the other hand, display trends with more accuracy. A glance of a candlestick chart can give you a clear idea of future price movement and the reason behind it.
 

2) Coverage of Investor Sentiment: Markets like stock exchange are governed by investor sentiment. Emotions like greed and fear have a huge impact on stock prices. With candlestick charts, you can gauge the value of a particular commodity by reading the buyer-seller interactions.
 

3) Easily Understandable: From novice to professionals, everyone can employ these patterns with ease. Pair this up with a good analytic Forex trading strategy, and you have yourself a reliable indicator. Learning candlesticks take a maximum of a few weeks. The time and effort put in, is undoubtedly worth it.
 

4) Year-old Testimonial to its Correctness: Rice traders from over 200 years ago used this tactic to affirm price action in markets. Hence, for people believing this to be coincidental, or a tactic based on luck, it has been in use for centuries and proves to be one of the most reliable strategies.
 

Your Forex trading career can see tremendous growth when you employ the right indicators and Forex trading strategies. Get the best of both, sign up with WesternFX! Our experienced brokers will provide you with proven methods and equip you with the most adept of trading tools. With our assistance, you can ace Forex trading in Malaysia!

4 Things to become Successful in Forex Trading in Malaysia

In any field, you will notice that the successful lot are always disciplined in their approach and are a league above everyone else. The path to becoming a successful Forex trader is one that is ridden with challenges. Foreign exchange is no cakewalk; thousands of traders enter the currency markets only to return back with disappointing losses. No matter how effective a strategy you implement, if your approach and trading personality aren't proficient, leave along winning, even thriving in Forex will be difficult!
 

To become a successful trader, you have to start thinking like one, and acting like one. 

Tips to become Successful in Forex Trading in Malaysia

Here are 4 tips to grow as a Forex trader in Malaysia:
 

1) Keeping it Real: Ambition and drive are undoubtedly key attributes to have as a Forex player, however without keeping realistic goals, you will never see any improvement. If you have a target of making $10,000 in winnings, it is something you can work towards. Wanting to make a billion dollars right off the bat is unachievable and will only end up clouding your vision! Have goals that are achievable, tasks that are doable, and maintain a realistic approach.
 

2) Overnight Success is a Fictitious Concept: From the outside, Forex trading in Malaysia looks very lenient and lucrative. There is this huge misconception that simply becoming a currency trader will make you rich! To profit consistently and enjoy healthy returns, you have to exercise tremendous resilience and patience. Some trades will reward well, while some might completely empty your account! Such is the volatility of Forex; and to win in a domain this chaotic, you will have to play it safe and play it slow.
 

3) Practice is the Key to Many Doors: Vladimir Horowitz quoted, "The difference between ordinary and extraordinary is practice." Successful traders are at the peak, not because they got lucky, but because they practiced. In Forex, you can learn and test out your approach on demo platforms; this facility is what makes currency trading attractive to several.   
 

4) Plot Your Movements: Forex trading doesn't do well with improvisations. While you may have to make nick-of-the-moment calls on some days, going into trades without any plan will do plenty of harm! Plan out every move you want to make; from entry points to Forex trading strategies to stop orders. Stay ahead of the game.
 

Forex trading in Malaysia is a quick-growing field today, with thousands entering these markets. Equipped with the right mindset and strategy, you can embark on your journey to success right away! Join the ranks of successful Forex traders today, with WesternFX! Assisted by our experts, you will transition into a professional in no time.

How to Avoid Losses in Forex Trading? | Tips to Minimize Losses

In foreign exchange, there is no 100% guarantee of winning. Given its volatility, losses are obvious. As a Forex trader, you might spend a lot of time plotting methods to completely avoid downtrends and keep dodging losses; but there is no such Forex trading strategy! Currency trading houses scary levels of unpredictability, enough to topple a trade completely, no matter how braced. Avoiding losses is a dream, but minimizing them and their impact is definitely possible and required to survive in Forex's chaotic markets.
 

The first step to becoming a successful Forex trader is learning how to minimize your losses.
 

Here are 4 amazing ways to do it:
 

Forex Trading Loss Management

1) Dedicating Risk Capital: When you are working on a trade with $100,000, keep $10,000 as a dedicated risk capital. You can't avoid losses, so be prepared for one to occur, is the best approach to Forex! Despite the apt placement of stop-loss and other such measures, there will be days when losses find a way in. However, with a dedicated amount of money placed, you can proceed fearlessly into the markets - knowing that said amount will be lost eventually.
 

2) Using Sharp Indicators: Not all indicators offer precise information. With a good indicator in place, you can speculate all the possibilities of a bad trade occurring. This might not always play out, because a Forex trade can change courses at any instant! However, the smart approach is to always have indicators in place; and since they work on past values and are mathematically accurate, you can definitely rely on them to some extent. Read these 3 things to keep in mind while trading Forex!
 

3) Expecting a Bad Trade: A more philosophical approach to trading; your mentality in a trade speaks a lot and plays a huge role in deciding the outcome! Overconfident traders often end up investing in all the wrong places, and ultimately face losses. Enter every trade, thinking it will end up in a loss - this way, you are prepared not only to avoid a loss but to face one when it occurs!
 

4) Placing Stop-losses: One of the best money-management tools in Forex, stop-losses are a must if you have a risky trading style! These mechanisms will automatically withdraw your position from a trade, whenever a losing trend is noticed. When you specify a certain loss threshold that you can afford, it will pull you out of the trade if it goes beyond the said threshold, making sure you don't incur heavy losses.
 

Loss management in Forex trading will aid hugely. The more losses you minimize, the bigger the room for profits. Especially when working with leverages, these measures will be necessary to ensure you don't incur irreparable losses. A good broker's assistance can turn the worst trade around! Get yourself the best broker in town and ace Forex trading in Malaysia! Call WesternFX today and avail our superior trading solutions. With us besides you will make consistent profits in no time!

Tricks to Choose a Better Forex Broker in Malaysia 2018

To achieve trading success in Forex, the first and foremost requirement is a good broker. Forex traders often seem to believe they are completely responsible for the outcome of an exchange; brokers play as big a role as traders do in currency trading. Under a reputed brokerage, even a bad trade can be turned profitable! However, finding a good broker is no longer a simple job, it's a challenge. Several agencies scam novices with lies of confirmed profits, and big wins. However, there is no formula in anyone's hands to make guaranteed profits!
 

Braving the chaotic world of Forex requires impeccable brokerage. 

Here are 4 factors to keep in mind while choosing a Forex broker in Malaysia:

Forex Broker Selection Tips

 

1) Legitimacy: As said before, Forex brokers are in plenty; the good from bad, no one can tell. Before delving in, you should know if your broker is who he says he is, and if the agency is regulated. To prevent scams, and protect traders, establishments like NFA (National Futures Association) and CFTC (Commodity Futures Trading Commission) have been placed in charge. Several other bodies exist, depending on the genre of trade, and the location - FCA, PRA, AMF, etc. Ensure your broker is regulated by one such body.
 

2) Commission Costs: Transaction costs and commissions are permanent in Forex. It is crucial to find a broker who charges justly. Usually, better brokerage comes at high costs, but it's worth the pay! However, make sure you review Forex brokers thoroughly before accepting to pay and avail their services.
 

3) Trading Platform: Trading is facilitated through the help of tools called trading platforms. These are loaded with mechanisms to gauge markets, study their movements and speculate outcomes. Without these platforms, judging markets is an arduous task. Platforms vary from one broker to the other; get yourself a broker who provides the best.
 

4) Customer Care: While you might think brokerage stops with a trade, it carries further beyond! The way a broker treats his partners tells a lot. During your trading venture, you will require expert assistance on one too many occasions. Your agent should provide the best solution, without delay. Be it a technical one or even a small query - customer service tops every other factor of rating.
 

The path to becoming a successful Forex trader is often paved by a good brokerage. Albeit, your skills will have to be impeccable, so will the agent's! You can get yourself a world-class Forex broker in Malaysia today and conquer the world of currencies - call WesternFX! We will equip you with the best of services and solutions, and ensure you skyrocket to your goals!

How To Identify A Good Forex Trader in Malaysia?

The foreign exchange market provides a lucrative opening for both traders and brokers. Today, brokers are facing cut-throat competition, because traders have a huge pool to choose from. This means that trading agents have to be absolutely amazing to be picked. On the other hand, traders face a tough decision as well; several factors govern a broker's efficiency, and partnering up with a bad dealer will result in catastrophic outcomes.
 

How can you identify a good broker from bad? 

Here are the defining factors for a Good Forex Trader in Malaysia:

 

Tips to Identify a Good Forex Trader in Malaysia

1) Regulation: Being regulated by an established financial institution has become mandatory today; with scammers on the rise, there needs to be some sort of assurance when selecting a Forex broker. In the U.S., the National Futures Association (NFA) and the U.S. Commodity Futures Trading Commission (CFTC) govern brokerage firms and regulate them. These organizations are responsible for developing rules, regulations and protecting the probity of Forex markets.

2) Security of Funds: Trading currencies will need you to invest huge sums of money. You can't afford to give it to a shady dealer who guarantees increased returns! If your Forex broker offers segregated accounts for the funds, then your trading deposits are safe. Almost every broker will claim safety and assure you verbally, but such trivial guarantee isn't enough! Go through user reviews and find out the facilities offered for fund security and check the broker's reliability!

3) Currency Pairs Provided: Only trading predominant currency pairs will not always work out. There are times when pairs like USD/EUR, AUD/JPY see a drastic fall. Your Forex trading broker should offer these pairs and a variety of less-traded pairs too. Forex has immense volatility and you never know which currency will birth profits! 

4) Trading Platform and Demo Platform: The most important criteria in Forex trading - trading platform efficiency. All of your trades will be conducted through this, and having a good platform which is equipped with necessary charting and analytical tools is necessary. Similarly, your online broker should provide demo platforms to learn trading and test strategies before going live. Demo account and trading platforms play a huge role in Forex! 

A good Forex broker is defined by these aspects; once you've partnered with a skilled broker, you are set for life! Currency trading has a lot of profitable prospects, and the only thing connecting you with the Forex market is your broker. Don't settle for average; get the best Forex trader in Malaysia- hire WesternFX! Our world-class brokers will equip you with stellar platforms and help you ace your trades! Call us today and get a quote.