The experienced traders always recommend trading the major pairs. Though they trade the synthetic pairs they have years of experience. Most of the major pairs like EURUSD, AUDUSD etc. exhibit stability. This means, prices are much more stable and if you manage to trade with the trend, you can expect to make big profits. But this information is not enough to stop you from trading the minors or cross pairs. It’s very normal to get tempted by seeing the volatility of the cross pairs. Unless you have more than 3 years of experience, you should stick to major pairs only.
This article is going to change your trading career. After reading this article, you will be able to trade the Forex market just like any other pro traders.
Focus on the trading session
The importance of having knowledge of trading sessions is very crucial to your success. If you are new to this industry, you may not find the importance of perfect timing and selection of the pairs. The naïve traders are not getting enough volatility to make a profit since they are trading the wrong pair at the wrong time. For instance, if you trade the AUDUSD pair in the London trading session, do you think you will make a profit? The AUDUSD pair will exhibit slowly movement and it will be hard to cover up the spread. But if you trade the same pair during the Sydney or New York trading session, you can expect to make a huge profit.
Learn about the news factors
Analyzing the news can greatly improve your performance in the options trading industry. When you are trading the major pairs, you have to analyze the high impact news. News can even change the trend of the asset. So, ignoring the news is more like driving a car without any brake. The chances of stopping the car are nearly zero. Those who think learning to analyze the major news is a very complicated process is making a big mistake. In fact, this is one of the easiest things to learn in trading. Read a couple of articles and you will understand how to interpret the major news. So, why do we need to stick to the major pairs when you can analyze the news? The answer lies within your skills. Most of the time, price respect the news data and allows you to make a profit. But when you will start trading the cross pairs, you will find anomaly with the news and technical data. Thus you will lose money.
Look for the major chart patterns
Chart pattern trading strategy has always been the most effective way to make a profit. In fact, you can catch the large movements and trade the major reversals like the pro traders. But if you trade the minor pairs, you will notice the trading asset is not respecting the key levels or major chart patterns. You will lose money from the best signals also. For this reason, it’s highly imperative you stick to the major pairs. Some you might start thinking that minor pair trading is nearly impossible. You are right. To trade the minor pairs, you have extensive skills in technical, fundamental and sentiment analysis. And it takes years of practice to predict the minor pair’s movement.
Trading is not about selecting the financial instrument. It’s more about making a consistent profit without having any trouble. Stop pretending that you know the details of this market and stick to the major pairs. If you do so, you won’t have to struggle like the losers of this market. In fact, major pair trading is also very tough. Unless you can find the key support and resistance level with a high level of accuracy, you are not going to make any real progress. So, thinking about the cross pairs is more like digging a hole in a boat.