One of the best-proven ways to make money is to trade in major markets. If you think trading in minor markets can save you from volatility as minor currency pairs are exchanged and traded there, it will not work. This Forex market is very much interrelated with the other currency. If you like to trade the market with US Dollar, you will see that you are having a having an impact on your minor currency pair when you are trading the market. This is very real and true for Forex. You cannot expect to not get a touch when the market is volatile, even if it’s the last traded market of this financial exchange. All the expert traders in the United Kingdom always prefer to trade the major pairs due to its stability. Compared to movement and trade signal of synthetic pairs major pairs are safe to trade. However, you should always remember to do the fundamental analysis along with the technical analysis to find the best possible trade setup.
How can trading in major markets give you money?
You may think that how you can make money when you are trading in major markets. It is nothing but a common sense where you will be safe from the other Forex markets. The primary reason why traders make money is the up and down of the price level of the currency pairs. When the price level moves, you are going to make or lose money. It is lost for most of the case and you will be making a profit when you have placed the right trades. In major markets, as most of the major currency pairs of the world are being traded, you can expect that you will have a smooth, if not volatile, trading experience. Major markets are the main reasons why traders like these markets because of their money. If your market is dry and there is no money, you better stay out of the market. You can lose your money and this why traders are advised to trade in major markets.
For example, the US dollar makes more than 82% of the transition in the CFD trading market. If you are trading in US dollar, you will be at peace of mind knowing that you can always have the market in your favor and there is less chance of the market to get volatile. Though you may have sometimes when you will face volatility, it will not be as much as like the other markets. All these currency parts are interrelated and you will have a better chance of being safe in Forex market. These markets have got the most amount of money and you can certainly take a dip of money when you are trading in major markets.
No major spikes
Spikes are very common in the Forex market. But when you trade the cross pair you have to deal with lots of false spikes. For this reason, many professionals at Saxo only trade the majors. However you can also make a great deal of profit in cross pair trading but in that case, you will have to use a wide stop loss. Instead of placing trades with indicators based reading always focus on the dynamics support and resistance level. Focus on the price action confirmation signal in the higher time frame and you will see a great deal of improvement in your trading performance.
Summary: If you know how to trade the market then currency pair will not be a big problem for you. But if you are new to this trading world then you need to start trading with the major pairs. Always trade the higher time frame and use the Japanese candlestick pattern to find quality trading signals in favor of the market trend. Last but not the least never trade with any amount that you can’t afford to lose.