Those who are new to the investment might find trading extremely difficult. They will say that almost 95% of the traders are losing money in this profession and it is better not trade the Forex market. Unlike the novice traders, the smart traders in the United Kingdom know very well how to manage their losing trades and make profit consistently. Instead of trading the minor pairs they are more focused to find good trades in the major pairs. Minor pair trading is extremely profitable but considering the risk factors, many expert Uk traders often ignore them. If you can master major pair trading you can significantly improve your trading career. You don’t need to overtrade the market to earn huge amount of money from this industry. You can easily use the major pairs and execute profitable trades with very low risk. Now we will give you some amazing tips which will help you trade the most active pairs in the market.
Study the strength of the U.S dollar
As a full-time trader, you have to understand the fact, U.S dollar is present is most major pairs. So if you don’t study the fundamental factors of the U.S economy it will be really hard for you to find best trades in the volatile market. Some of you might be thinking that understanding the fundamental factors is really hard. But things are not all complex. You don’t have to learn economics to know the about the key price driving catalyst of the market. Focus on the U.S rate hike decision since it has a heavy impact on the Forex market. If the FED hike their interest, the U.S dollar index which measures the overall value of the green bucks strength surge higher. Similarly, a dovish statement from the FED officials will create bearish pressure in the U.S dollar index. Consider this key factors and use it to determine the perfect trades.
The European economy
When you are dealing with the most traded currencies, you have to understand the performance of the European economy. For instance, if you want to trade the EURUSD pair, it’s highly imperative that you know about the economic conditions of Europe. Focus on the ECB press conference, and try to decipher the speech of the leading officials. During the minimum bid rate decision stay on the sideline since it creates a high level of market volatility. In order to consider the short-term economic performance, you can focus on the industrial PMI data release to get a clear idea about the European economy.
The Great British pound
You have to understand the performance of the British economy to execute profitable trades. Let’s consider the Brexit events. Those who didn’t have enough knowledge on the fundamental factors of the market lost a huge amount of money during the Brexit event. But the smart investors made a decent profit by shorting the GBPUSD pair in the global market. As a Forex trader, you have to act smart according to the published news. But this doesn’t mean you will always win trades by trading the major news releases. Always be prepared to embrace the losing trades since it is just a part of your trading career.
The Japanese Yen
Trading the Japanese Yen is very hard as Yen related pair is extremely volatile. But if you can find the perfect balance between technical and fundamental factors, you can easily make a huge profit from the market. You don’t have to trade the market all day long to secure your living from this profession. When you trading Yen related pair, focus on the Japanese trade balance. Make sure you always keep tuned for Bank of Japan rate hike decision since it plays a major role in price fluctuations. Understanding all these factors might seem a little bit difficult but if you practice hard, everything will become easy for you.