Do you only trade the major currency pairs?by Alfie Davies Financial Manager
Most of the traders trade in a major currency market. If you want to make money and think that major currency pair is the right market for you, you are mistaken. There are no markets in Forex that can give you money if you are placing bad trades. It is a misconception that most traders believe they can trade the Forex market if they are placing bad trades in a major market. There are major currency pairs in the run, money is flowing and they will make money even if they place bad trades. You cannot make you money with bad trades in Forex. This article will tell that why most traders trade in the major currency market and they cannot make money. They are all of them qualified in Forex with a good strategy and still, they cannot make money. There are a lot of other traders who are making money in Forex in minor currency markets.
Major market has many trends
We know that trend is trader’s friend. Trend tells the traders where the money is and traders place their trade. If you are new in the Forex market and you do not know how to trade, this trend can come to a big help to you. Most people place their trades with the trend. In major currency markets, the trend is always changing. There are many people in the Forex market and all of them are trying to get the price level in their favorable position. If the buyers can get it, they make money and sellers lose. If the sellers are getting the trend in their position the buyers lose. The trend in major markets moves smoothly. If you do not know how to trade with major currency pairs in major markets, you will lose your money. Trading with the trend is even more important for traders who are trading with major currency pairs.
If you are completely new to the CFD trading industry then it’s highly imperative that you trade only the major pairs. Many novice traders often start their trading career based on cross pair trading and thus lose a huge amount of money. Compared to the price movement of the major pair the cross pair is extremely volatile in nature and often exhibits false spike. So without having the proper education and trading experience you should never try to trade the synthetic or cross pair.
No chance for mistakes
There is no chance for mistakes in major markets. This market is hard to win and if you lose your money, you cannot place trades again to get your money. Back. Traders who trade the market to get back their money lose their profit they had made. If you lost your money, do not think of it and trade with the new strategy. Your small mistakes may cost you very big in Forex.
Trading is not all easy rather it is one of the most difficult tasks in the financial industry. Even the expert traders at Saxo often consider trading as the job for elite people. You need to learn the basic of this market and develop a unique trading system to deal with the extreme volatility of this market. If you think that you can get away by placing random trades then get ready to lose a huge amount of money. Success is so hard in the financial industry that if you don’t love your trading profession then you won’t be able to deal with your losing trades. You need to have a strong mindset so that you can easily deal with the losing trades. Learn about the trade management system and trade only the major pairs during the first few years. Focus on high-quality trade execution and always follow the long-term market trend. Stay cautious and trade the market with discipline.
Created on Nov 15th 2017 06:59. Viewed 716 times.