Jump to content

The best way to trade with major currency pairs


Recommended Posts

Majority of the retail traders trades many types of currency pairs. The currency pairs in Forex are major and minor pairs. The major pairs are the most used pairs and they have US dollar in them. When US dollar is paired with another currency in Forex, we call this pair a major currency pair. When US dollar is not paired, it is called minor currency pairs. Most traders like to trade with the major currency pairs in Forex as US dollar makes up more than 80% of Forex transaction. When you are trading with major currency pairs, you need to know things that can make trading more successful.

Trading the majors has always some added advantage. It's true that as a trader you will have access to all the possible trading pairs in the world but this doesn’t mean that you will have to trade every single one of them. The expert Aussie traders at Saxo always prefers major currency pair in their trading since they know their movement is relatively more stable. You can make a huge amount of money by trading the cross pairs but to do so you need to use a very wide stop loss. On the other hand, if you scalp the market then the synthetic pair will be extremely risky for you. You need to understand the associated risk in trading or else it will be really hard for you to develop yourself as a trader.

Know the correlation of currencies

Many major pairs in Forex have the correlation. When the price of one pair goes up another pair goes down. This correlation is very important for you. If you want to make money by trading with major currency pairs, you need to know the correlation. Many traders trade these market by knowing the price level of the currency pairs because they know the pairs are correlated.

It’s not like that you have known all the correlation to become a profitable trader in the Forex trading industry. There are many other parameters which you need to follow to become a successful trader. For instance, if you don’t learn about multiple time frame analysis then it will be really hard for you to understand how this market really works. In fact, many trades will hit your potential stop loss price and go in favour of you. When you do the technical analysis make sure that you use the higher time frame data since it is one of the best ways to avoid the false trading signals. And always remember that being a beginner you should only trade the major pairs.

Investment market

Major currency pairs are used in Forex trading and they can be changed by investment markets. Forex itself is an investment market. When you trading with major pairs, know the news of investment market. Most of the time, these investment market can tell you if the market is going to be volatile. Forex fundamental technique is based on Forex news. If you want to get the most from your pairs, you also have to know the news of investment world. The price of minor pairs is not changed but major pairs can be changed as they are used in Forex more than other pairs. Traders like to trade the market and they know the news of the investment from different markets to keep their investment safe. If you know the dollar is falling in price, you will not buy the dollar.

Practice hard

Practice in Forex with your major pairs. One pair cannot give you money all the time. If you cannot make money, you can change the pairs and start practicing with new pairs. Trading with more than one major pairs can improve your profit growth in Forex. Traders know they can make money from pairs if they trade the market with strategy and analysis. Practice always when you try the new strategy with your pairs.

Link to comment
Share on other sites

There are two types of currency pairs in forex market; major currency pairs and minor currency pairs. And major currency pairs include one common currency that is USD. Using major currency pairs have some added advantages because the movement of USD is easier to predict than other currencies’ movements. That’s why my broker AAFX has suggested me to use major currency pairs. But to earn profit, the appropriate trading strategies is to it use various major pairs, not depending on one pair only.

 

Link to comment
Share on other sites

To me the best way is to trade with a single pair. Because every pair has its own characteristics. Once you are familiar with that pair, you can take another pair. Do not generalize all the major pairs. I trade only GBP/USD. I am trading with FXPM where I get support from my personal account manager in my trading. 

Link to comment
Share on other sites

Guest AlgoFiber

To be able to make profits in the long run on the major pairs is being able to adapt your strategies to the market conditions.

Never sit back and think you've beaten the market, be progressive and keep updating your strategy!

Link to comment
Share on other sites

On 11/20/2017 at 8:51 AM, uncle gober said:

it is true, for bsia generate profit in the forex it will never happen instantly, that's why traders should be able to better in improving existing trading skills in order to be more leverage in running the existing trading activities better.

In improving the ability of good trading it is not an easy thing on the run, forex business is where the business is very big risk. So now I am also to continue to regularly study with demo account and also follow the demo contest instaforex for where in the stage of preparation and readiness in maximizing the ability to trade maximally.

Link to comment
Share on other sites

8 hours ago, ViproMarket said:

because traders should be able to get through the existing process as well as possible in order to get a really good trading skill and can be counted on while being a trading activity in a real account.

Traders that it is always a routine to run in learning to improve the ability of good trading, because forex business is a business that is not an easy thing, but need a process in the stages of readiness and preparation to run in order to facilitate the management of profitable trading

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • 👍 Join TopGold.Forum Now

    The Most Welcoming & Trustworthy Earning Online Community

    Join over 25,000 members and 700 businesses on their journey to strike GOLD. 💰🍾👍

    👩 Want to make money online? 
    💼 Represent a company? 

⤴️-Paid Ad- TGF approve this banner. Add your banner here.🔥

×
×
  • Create New...