Post by adamsmiths on Aug 14, 2017 21:47:56 GMT 8
There are many traders in the financial world who are making millions of dollars by trading the live assets. These types of traders are very few and there are also another group of traders who are losing all their money. What is the difference between them? The main difference between the losing and winning traders lies in the selection of their trading currency pairs. Your currency pairs play a big role in making your profit and growing your account. If you try to trade the market with the major currency pair but you do not have known how this currency pair works, it will also not work for you. If you think you can be safe even when the market is volatile and will trade with a minor currency pair, you will also not make money if you do not know how to use your currency pair in the market. Trading in Forex is not easy and you need to know the ins and out of your currency pair. This is one of the secrets of making a profit in Forex trading. For this very reason, the professional traders in Singapore always study their trading currency pair thoroughly before placing their trade. They know without having a clear understanding about their trading pair they will never succeed in this industry.
How to find which currency pair is suitable for me?
This is a good question. If you think you can trade with any currency pair, you need to look at the market and find where the money is. Most of the time, major currency pairs are volatile and they have a very good movement. More volatility means there will be more movement in their price level. It also indicates that it will be very easy for you to make money and to lose money. If you look at the minor currency pairs, they are not affected by the global economy. They are relatively stable over time and it is somehow hard to make money in a stable market. How do you find your suitable currency pair then?
First, you have to ask yourself if you like to trade in a volatile market or in a stale market. After you have made up your mind, it is up to you to decide what currency pair you will use. It is better to trade with a currency pair that you have knowledge. If you like to trade with US dollar but have no knowledge, study US dollar for some time. It will open your eyes and you will know if this currency pair goes with your style. Once you study the U.S economy very well you will be able to place excellent trades in your online trading account. But before you start trading with your real money you should demo trade the market for at least three months.
Develop a solid trading system
This is very crucial for the success of your trading career. You can’t become a successful trader by following other people trading strategy. You need to work very hard and understand how this market really works. Based on your trading knowledge you need to use your demo account in an effective way so that you can find a perfect method to place high-quality trade under different market conditions. But always remember to incorporate proper risk management plan to your trading system as losing is inevitable in the forex market. You should also look at the risk reward ratio of your trade setup since it is one the key ingredient to making consistently.
Summary: Finding the perfect pair to trade is not an easy task. Though the trading pair will greatly vary from traders to traders you should assess the U.S economic performance since it is one of the most traded currency all over the world. And when you trade the market make sure to trade in favor the trend.
How to find which currency pair is suitable for me?
This is a good question. If you think you can trade with any currency pair, you need to look at the market and find where the money is. Most of the time, major currency pairs are volatile and they have a very good movement. More volatility means there will be more movement in their price level. It also indicates that it will be very easy for you to make money and to lose money. If you look at the minor currency pairs, they are not affected by the global economy. They are relatively stable over time and it is somehow hard to make money in a stable market. How do you find your suitable currency pair then?
First, you have to ask yourself if you like to trade in a volatile market or in a stale market. After you have made up your mind, it is up to you to decide what currency pair you will use. It is better to trade with a currency pair that you have knowledge. If you like to trade with US dollar but have no knowledge, study US dollar for some time. It will open your eyes and you will know if this currency pair goes with your style. Once you study the U.S economy very well you will be able to place excellent trades in your online trading account. But before you start trading with your real money you should demo trade the market for at least three months.
Develop a solid trading system
This is very crucial for the success of your trading career. You can’t become a successful trader by following other people trading strategy. You need to work very hard and understand how this market really works. Based on your trading knowledge you need to use your demo account in an effective way so that you can find a perfect method to place high-quality trade under different market conditions. But always remember to incorporate proper risk management plan to your trading system as losing is inevitable in the forex market. You should also look at the risk reward ratio of your trade setup since it is one the key ingredient to making consistently.
Summary: Finding the perfect pair to trade is not an easy task. Though the trading pair will greatly vary from traders to traders you should assess the U.S economic performance since it is one of the most traded currency all over the world. And when you trade the market make sure to trade in favor the trend.