The top nine Forex trades revealedby Timon Rossolimos, 03 April 2013
With pure excitement I remembered starting up my Forex platform for the first time, ready to make my first Forex trade. I went to my drop down list in the platform to select my currency pair and then...panic struck!
I saw over a 100 currencies, I never even knew existed!
I started feeling anxious and frazzled because I couldn't believe how many currencies there were to choose from...
The question was: Which of the 100-odd currencies should I trade?
After a pile of research and a whole lot of trial and error... I found the answer...
There are only NINE currency pairs you'll ever need to know to trade.
Out of all of the hundreds of currencies to trade, you only need to understand nine of them to be a successful Forex trader!
Luckily for you, these currency pairs are already broken up into two categories:
Major and Minor
Later on we'll get into these currency pairs but first I want to enlighten you on the differences between these two categories.
Major currency pairs are the currencies that are the most popular in the WORLD. They can handle trade sizes of over R4.5 billion per trade in the spot market.
The minor currencies on the other hand are the less popular currency pairs which usually cost you more than you deserve to pay. So this category of currency pairs, you can disregard them completely when trading Forex.
Let me start off by telling you why I only trade these nine Major currency pairs.
Three reasons why I make money trading these Major currency Pairs
#1 Major currency pairs are the most liquid trading currency pairs in the world, this tells me one thing... I'll make money knowing there will always be trends and movements while trading these.
This also means that I don't need to worry about paying high spreads between the bid price and the offer price.
Basically the spread is the difference between the price the buyer is willing to buy at and the price at which the seller is willing to sell at.
The spreads are usually 0.5 to three points. If your spread is higher ,I'd advise you find a better broker as this is an extremely high competitive market, so spread should be less.
#2 Major currency pairs are 'safe': They the most dominating currencies in the world, so you don't have to worry about the currency making vast movements such as dropping 5% or rising 7% in a day.
The possibility of one of the Major currencies collapsing is much LESS than the risk of a Minor currency pair.
Purely because there's trillions of dollars traded with the Major currencies a day that not one big event should ever cause a big dent in the currency price.
#3 The daily range of trading these Major pairs is on average a 100 pips. Now, I like to make on average around 20 to 70 pips a trade so having an average of 100 pips a day is more than enough for my trading style.
So now that you know why you should trade the Major pairs; let's get into what the 'big nine' Forex plays actually are!
The nine most profitable Forex pairs revealed:
The table not only shows the currency code and the currency formal name; it also shows you the popular informal 'fun' name people use for the major currency pairs on a daily basis.
So now you know which currencies to trade and which to filter, so go out there and make some good Forex profits.
Keep in mind
'Wisdom yields Wealth'
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Head Analyst: Red Hot Storm Trader
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