The major pairs to watch on the Forex market at the moment are AUDUSD and EURUSD. These currencies have had huge fluctuations and you need to stay on top of these movements, if you want to make money. Before you decide to trade currencies, it is important to find the correct pair to trade with and which one to watch.
The AUDUSD is the most popular currency pair and is traded around the world. The AUDUSD has struggled to maintain its value in the last few years, but it is considered to be the most stable of the major currencies. Many have argued that the AUDUSD has been overly influenced by the USDCAD.
The EURUSD has been fluctuating significantly over the last few years and is also said to be over-saturated by the use of the Euro. At the moment many of the major banks are shifting deposits and using the EURUSD as a front for these financial transactions.
Both the AUDUSD and the EURUSD have plenty of options for traders to consider. To be honest there is little to choose between these two pairs at the moment. One of the best things you can do is to make sure you are constantly informed about both currencies.
One of the biggest and most important decisions you have to make when trading currencies is the way you trade. If you want to get the most out of your currency trading then you need to start making trades on a consistent basis. Making trades less frequently will allow you to trade more, but that can only lead to losses.
Most traders prefer to pick a trend direction and stick to it. Even if the trend appears to have shifted for a short time, if you stick to it then you should be fine. However you need to take the time to make sure you can see any shifts and trade accordingly.
If you want to trade and get large amounts of profit then you have to make sure you are open to buying and selling. When you decide to sell you want to make sure you can cover your positions in the next few hours. If you try to sell without knowing that you can get a payout than you could lose all your money.
Whilst most major currency pairs will continue to move in one direction for a few days at the end of the trading day, it is better to be open to trade in multiple currencies at the start of the day. That way you can get a feel for the market and be prepared for changes if the moves begin to shift.
With the AUDUSD it is often best to have a lot of available money in your trading account to buy currency when it is on sale. This way you can buy the AUDUSD when it is the most profitable and avoid making losses from an unexpected change in trend.
Always make sure you can cover your positions in the next few hours. If you want to be safe you may consider borrowing some money to make sure you are covered in the event of a complete market collapse. Always research the trends, events and trading trends in each currency before you decide to trade.
Don’t forget to keep yourself updated and informed when trading currencies. You don’t want to make any wrong decisions and get in over your head.