If intending to invest in the international financial market, especially when in Malaysia, you should come up with a strategy which will help you, regardless of the market you intend to specialise in. For example, forex, bonds, stock market or commodities. Financial trading or forex involves some risks, which investors must take if they want to make profits out of the investment. Coming up with a working trading strategy may not be an easy task, especially for amateur traders, but in this section, we have detailed some tips which will help you come up with an excellent financial market trading strategy.
Before deciding on a working trading strategy, we encourage you to read through some other sections on this site, to get more information and knowledge related to international financial markets, and how you can trade when in Malaysia. Here are some tips to help you come up with a good strategy.
- Positional Trading
This is a trading strategy which is popular among long term traders and investors with a vast knowledge of financial markets. This is a type of approach where investors opt to open trades over a long period, ideally ranging from a week to several months. The only limitation with this strategy, is the low profits, since you only make a few trades per month or year, and you also need a more significant investment plan.
- Swing Trading
This strategy requires the investor to make medium-term trades which may run for a day or week, and the investor needs to be conversant with the support and resistance patterns of different trades.
- Day Trading
With the day trading strategy, you make short term trades, which in most cases, are trades that fall under an hour or three hours time frame. With this strategy, you focus on when the market is volatile, which is the period when money is made.