Everyone thinks trading is an easy task. They start with a demo account and easily make a huge profit. Soon they gather a huge amount of money with great hope to earn millions of dollars. But things are not as easy as they seem. You have to understand the core concept of trading just to secure your investment. Those who are relatively new to the investment business always think about the profit factors and this is a very big mistake. If you want to survive in the retail trading industry, make sure you learn to deal with the technical and fundamental parameters.
After having the basic knowledge of this investment business, you should start thinking about the major currency pairs only. Dealing with the minor currency pairs increases the risk to a great extent and it might become one of the key reasons for blowing up a trading account. Today, we are going to discuss some of the key parameters for which you should only trade the major pairs.
Stable price movement
The price movement in the major currency pairs is much more stable. Unless you learn to trade the stable market it will be really hard to make a consistent profit. The naïve Singaporean traders often think by trading the cross pairs they can earn a huge amount of money without losing too much. But if this was so easy, no one would have lost money at trading. Analyze the price movement in the major pairs and you will find many repeated patterns. This will eventually help you to execute high-quality trades with a high level of accuracy.
Risk exposure is low
As a fulltime trader, you need to use the best Forex trading software to improve your trade execution process. Most of the time, the naïve traders don’t know the perfect way to analyze the market data. In fact, they use the faulty trading environment to execute the trades. As a result of this, they always end up trading the market with high risk. If you want to survive at trading, you must reduce the risk exposure. Trading the major pair is one of the most effective methods to minimize your risk at trading. The smart investors at Saxo never prefer to trade the cross pairs since it results in a big loss. Most of the time the false spikes and trade signals are generated in the lower time frame and this is one of the main reasons for which you should avoid trading the cross or synthetic pairs.
Fundamental factors
Analyzing the fundamental news for the major pairs is a very easy task. But when you start dealing with the cross pair analysis, you will not find relevant news. Analyzing the major news will be very tough. Basically, you will be placing most of the trades based on the technical data. So, to eliminate this problem, you should trade the major pairs like AUDUSD, GBPUSD, etc. since analyzing the major news will become easier. Though learning fundamental analysis is a little bit complex, you can do so by using the demo account. There is no reason to risk real money by trading the market with technical data. Use the safe method at trading and you will slowly learn to place the perfect trades with a high level of accuracy.
Trading skills
In order to earn a living, you need to have precise trading skills. The only way to do this is to follow the major currency pair’s price movement. Though you will be having some tough time, you can easily deal with this problem by using the technical parameters. If required, learn more about the demo trading environment. Trade the major pairs along with the cross pairs. It won’t take much time that making a profit in the Forex major is much easier. Moreover, you can easily develop your skills while using a stable market for trading.
[the_ad id=”47012″]
Land a High-Paying Web3 Job in 90 Days: The Ultimate Roadmap
