Trading the major pairs like a pro
Accessing the online trading industry is fairly easy, but protecting your trading capital is tough. Most of the time, the naïve traders think about the profit factors. They never realize the fact, losing trades can cost their capital. 96-97% of the retail traders are struggling to make consistent profit. So, why it’s so hard to become successful at trading? They relies on too many factors. But if you get into the gist, lack of trading knowledge and discipline would be the main cause. At times, trading too many assets contributes to the losing orders. Once you finish reading this article, you can trade the Forex majors like a pro trader.
Major pairs are more stable
Getting used to the Forex market requires devotion. If you start trading all the financial instrument, you will not have the ability to analyze the market data with high level of accuracy. Most of the time, you will be losing money due to low quality trade execution. But if you look at the long term goals, it won’t take much time to understand why major pair trading is safe. Majority of the pro traders in Singapore are making profit based on major pairs only. Look at the price chart in the cross pairs. Most of the time you will see wild spikes. These wild spikes are nothing but the examples of hunting the stops. But in the major pairs, such spikes are not that common. So the traders are safer and they can make more money from their trades.
Allows you trade the news
If you learn to use the trading platform professionally, you can easily analyze the news with accuracy. Most of the time the traders find it hard to make the correction correlation between technical factors and news data. For this reason, they lose money most of the time. However, even after learning about the fundamental analysis, some you might have trouble in analyzing the price chart. This is because you are dealing with the cross pairs. The cross pairs are highly volatile and can exhibit wild spikes without any prior news. And predicting the price movement during the major news becomes hard. So, if you intend to develop yourself as a professional trader, make sure you are only focusing on the major pairs. Once you get skilled, you can try to trade the cross pairs.
Reduces the risk
Cross pair trading strategy is very risky. Most of the time the traders fails to predict the price movement with accuracy. But if you trade the major pairs, you don’t have to deal with such issues. As a currency trader, you have the liberty to trade the major pairs like the pro trader. By the term liberty we are refereeing to freedom in the stable market. You may think taking 1% risk enough but if you trade the cross pairs, losing 10 trades in a row is just a matter of time. Even with the 1% risk factors, you will lose 10% of your equity. But if you trade the Forex majors, it will be tough to lose 10 trades. So, to limit the risk factors, you must learn to trade in low risk environment.
Allows you to create a perfect system
You need to have a perfect trading strategy to trade the real market. If you intent to make some quick profit, its better you start trading the market with the major pairs. Most of the time, the traders loses money since they don’t have any valid trading strategy. And creating a perfect trading strategy using the cross pairs is a very complicated process. Even after using the advanced tools, you won’t be able to protect your capital from the wild swings. So, for the safety of your investment, it’s better to trade the Forex majors.