By Zarith Sofia Zulkifli and Hairuddin Mohammad

Imagine a market bigger than any stock exchange, operating non-stop across the globe, where billions of dollars change hands every single day.

Welcome to the world of Forex, or foreign exchange, a vibrant financial arena where currencies such as the US Dollar, the Euro and the Japanese Yen are constantly bought, sold and traded.

From central banks to individual traders, participants navigate this dynamic market to seize opportunities, manage risks, and grow their wealth.

Why Forex Matters? Forex trading is more than just buying and selling currencies; it is a powerful tool for understanding the global economy. Its 24-hour accessibility, potential for profit in rising and falling markets, and reliance on both fundamental and technical analysis make it appealing to a wide range of traders.

Leverage amplifies opportunities, while automated trading systems, called Expert Advisors (EAs), bring precision and speed, using Technical Indicators (TIs) like the Moving Average (MA), Relative Strength Index (RSI) and more to make strategic decisions faster than any human could.

Forex trading in Malaysia

Malaysia has seen a surge of interest in Forex trading, especially among young adults and individuals seeking flexible income opportunities.

Automated trading (also known as Algo trading or EA trading) offers a way to overcome human limitations such as emotional bias, time constraints, or inconsistent decision-making.

As the country moves towards digital and technological skills development, it becomes crucial to understand the provisions for competency development among Malaysian traders, especially from the perspective of automated systems.

As financial markets become increasingly digital and fast-paced, traders are relying more on EAs and algorithm-based strategies to execute trades.

Currently, retail traders are highly active in Malaysia’s growing online trading ecosystem, adopting various strategies and techniques, demonstrating strong money and risk management skills, and holding personal views on trading robots – all of which signify the flourishing of the multi-billion-dollar industry in the Malaysian context.

Forex trader competency

Forex trading requires a blend of technical knowledge, analytical skills, and practical experience to succeed in a highly volatile market.

Competent Forex traders must have a strong understanding of financial markets, including the factors that influence currency movements, such as economic indicators, geopolitical events, and central bank policies.

They should be proficient in technical analysis tools like MA indicators, trend lines, and oscillators, as well as chart patterns to identify entry and exit points.

Additionally, traders need solid risk management skills to determine optimal position sizing, stop loss levels, and leverage usage to minimise potential losses while maximising gains.

Emotional discipline is equally crucial, as traders must control impulsive decisions, manage stress, and maintain consistency even during market fluctuations.

Beyond technical and analytical skills, Forex traders need strong decision-making, problem-solving, and continuous learning competencies.

Effective communication and research skills help traders stay up to date on global economic news and collaborate on or discuss strategies as needed.

Technological literacy is increasingly important, as many traders rely on trading platforms, automated systems, and Expert Advisors (EAs) to execute strategies efficiently.

Furthermore, strategic thinking and adaptability are vital to respond to changing market conditions and unexpected events.

Altogether, a successful Forex trader combines market knowledge, technical proficiency, emotional resilience, and ongoing learning to navigate complex trading environments effectively, which has contributed to the development of competency, as shown in Table 1 (adopted from a series of research by the authors).

Table 1: The Forex trader competency

Forex Trader Competency from the Perspective of Technical and Vocational Education and Training (TVET)

The National TVET Policy 2030, which aims to elevate skills and incomes whilst focusing on creating a highly skilled, future-ready workforce by aligning training with industry needs in high-growth areas, can benefit from Forex trading.

Furthermore, several research findings provide crucial implications for strengthening TVET, especially in financial technology, data analysis, and algorithmic trading modules.

Thus, TVET institutions (public and private) can build on this momentum by introducing structured training programs in algorithm development, trading automation, and risk analytics.

In-line, TVET programmes can integrate hands-on learning using trading platforms, EA builders, and back-testing tools to equip learners with practical skills aligned with industry needs.

With financial markets becoming increasingly digital, TVET must evolve beyond traditional business and finance subjects, shifting toward Fintech-driven competencies such as programming trading robots, developing trading algorithms, and interpreting market data.

Furthermore, as automated trading reduces human error and enhances consistency, TVET can train learners to use similar automation principles in broader economic sectors, including banking, investment analysis, and Fintech entrepreneurship.

Additionally, by understanding how Malaysian traders adapt to automated systems, TVET institutions can tailor their teaching methods to incorporate simulation-based learning, industry-standard software, and algorithmic decision-making tools.

This will not just produce competent traders, but also prepare students for future job roles that require automation, data science, and financial modelling.

On the other hand, the insights may also guide policymakers in enhancing digital finance education nationwide, helping Malaysia produce a skilled workforce capable of contributing to the Fintech industry.

Way forward

Ultimately, the Forex trader competency (as in Table 1) is useful in many ways, including supporting TVET’s mission to produce competent, future-ready learners who are able to thrive in a rapidly evolving digital economy.

Nevertheless, special care needs to be in place with regard to its TVET programme development, training/teaching and learning, assessment, and overall quality assurances expected for any TVET programme.

-- BERNAMA

Br Dr Hairuddin Mohammad (hairuddinm@uthm.edu.my) is a Senior Lecturer at the Centre for Diploma Studies, Universiti Tun Hussein Onn Malaysia (UTHM) cum President of the Association of Certified Construction and Project Development Malaysia (ACCPM), and Dr Zarith Sofia Zulkifli (zarithazam99@gmailcom) is an Independent Researcher.