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Trading Insider | 18 th May 2020
Editor’s Letter
Good Morning Platinum Traders, Nirav Shah has been a professional trader since 2001. His keen interest in the financial markets was passed down from his father who worked for one of London’s most prestigious stock brokers. He comes from a family of traders that have worked for institutions such as ICAP, Bank of America and Citibank. In 2008 Nirav started developing his algorithm after an in-depth study alongside 3 other Institutional Traders and for 2 years he spent well over £500,000 in his research and development to create an algorithm that would actually study 18 indicators and combine them with an institutional orders flow. Nirav Shah is the creator of The Platinum Trading Methodology, a proprietary trading and analysis method. Nirav has been a commentator on CNBC about the financial markets, and has written many trading articles for some of the world’s best-known financial publications. Nirav’s trading philosophy is one of low risk, high probability trading, a style that is very patient and disciplined but brings great rewards. He is now willing to share his vast experience with anybody who is open minded enough to learn how to trade professionally.
Nirav Shah Chief Editor
The US dollar was pretty strong last week with the aussie and in particular the pound and kiwi very bearish on the back of it. The US dollar basket ( DXY ) is on the move again with resistance around the 101.05 and 101.70 on the 50 / 38 fibs respectively. There were some decent trading opportunities once more on our market caps ( important trading zones ). Also keep a watchful eye on our daily updates for the individual pairs each day on the floor as this information will put you on the right side of the market, both technical and fundamental wise with relevant support / resistance levels quoted on there to plot onto your charts. Once you have your directional bias, then bring your technicals into play, fibs, start buying on dips in bullish moves, whilst selling rallies into any strength on bearish plays. BPC trades should always be on your radars as well. Looking ahead to this week we are fairly light as regards tier one red flag news events although we do have Fed chair Powell, BOE governor Bailey and RBA governor Lowe all speaking and therefore to be mindful of.
Trading Insider | 18 th May 2020
Contents THIS WEEK IN THE FOREX MARKETS.........................................................................................................................................4 Dollar holds firm on China tensions; negative rates talk sinks pound........................................................................4 Yen Beating G-10 Peers Has Asset Managers Betting on More Gains ......................................................................5 Pound, Euro to Extend Weekly Losses; Virus Impact Will Continue to Dominate .................................................6 As lockdowns ease, commodity currencies cautiously move up ................................................................................7 British Pound Slumped Post Brexit Talks, GBP/USD Eyeing Reversal?......................................................................8 KEY ANALYSIS OF MAJOR PAIRS...............................................................................................................................................10 EUR/USD..................................................................................................................................................................................................10 GBP/USD .................................................................................................................................................................................................11 TOP TRADING EVENTS....................................................................................................................................................................12 COT DATA ..............................................................................................................................................................................................13 HOW TO BECOME SUCCESSFUL TRADING FOREX - THE MINDSET OF SUCCESSFUL FOREX TRADERS .......17 ADVANCED FOREX TRADING STRATEGIES .........................................................................................................................21 VIDEO .....................................................................................................................................................................................................27 MASTERING TRADING FOREX REVERSALS STRATEGY....................................................................................................27
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Trading Insider | 18 th May 2020
THIS WEEK IN THE FOREX MARKETS
THIS WEEK IN THE FOREX MARKETS Dollar holds firm on China tensions; negative rates talk sinks pound
SINGAPORE (Reuters) - The dollar held its ground on Monday as concern about global tensions with China overshadowed improving sentiment from easing coronavirus lockdowns, while talk of negative interest rates pushed the pound to an almost twomonth low. As Italy announced plans to lift travel curbs next month and parts of the United States emerged from lockdowns in a boost to stocks, growing tensions with China in Europe, the United States and Australia have forced currency traders to raise their guard. The dollar was a touch firmer against the rangebound Japanese yen at 107.25 yen per dollar as Japan slipped into recession for the first time since 2015. The greenback was steady on most other Asian currencies after gains last week and flat against a basket of currencies (=USD) at 100.380. It held the New Zealand dollar below 60 cents at $0.5934, just above a three-week low. The Trump administration’s move to block chip supplies to Huawei Technologies is the latest Sino-U.S. flashpoint, with markets on edge for a response, after China’s Global Times newspaper flagged possible retaliation. Read more...
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THIS WEEK IN THE FOREX MARKETS
Trading Insider | 18 th May 2020
Yen Beating G-10 Peers Has Asset Managers Betting on More Gains
The yen’s advance versus the dollar this year has more legs, if positioning by asset managers is any guide. While Japan’s currency hasn’t really delivered a blowout rally, it has risen every month in 2020, with its 1.5% increase making it the sole gainer among Group-of-10 exchange rates. And the slow yet steady performance seems to have emboldened real-money funds to raise their bullish bets. The funds have boosted their net long yen positions for five straight weeks, taking them to 47,181 contracts in the period ended May 12, the highest since November 2012, according to the latest data from the U.S. Commodity Futures Trading Commission. The haven currency has found appeal amid the global market turmoil spurred by the coronavirus pandemic and also benefited from expectations that the Federal Reserve’s unprecedented monetary easing and steps to boost dollar supply will weaken the greenback. While these two catalysts are still in play, concern about a resurgence in U.S.-China tensions over the source of the virus outbreak is emerging as another trigger for investors to seek safety in the yen. “A major risk-off factor is that this is a presidential election year, which could prompt Trump to go hard on China,” said Ko Haruki, head of the financial solutions group at CIBC World Markets in Tokyo. “While risk-off can boost both the dollar and yen, factors related to U.S.-China trade frictions tend to put a stronger upward pressure on the yen compared with the dollar.” Read more...
THIS WEEK IN THE FOREX MARKETS
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Trading Insider | 18 th May 2020
Pound, Euro to Extend Weekly Losses; Virus Impact Will Continue to Dominate
Investing.com – The pound and euro are set for a second-straight weekly decline against the dollar on Friday, as analysts’ warn of further pain despite expectations that U.K and Eurozone economic output could improve this month. GBP/USD fell 0.88% to $1.2118, a more than seven-week low, while EUR/USD was up 0.12% to $1.0817. The impact of the coronavirus will likely continue to keep a lid on the pound and euro even as U.K. and eurozone purchasing managers’ index surveys – set to be released next week - will likely recover in May, UniCredit suggested. “There are still fears of a second wave of Covid-19 infections after new cluster cases were reported in Wuhan, China, and after new infections have also emerged in South Korea and Germany,” the bank said. Earlier this week, the U.K. reported GDP had declined 2% in the first quarter of the year, its quarterly biggest decline since 2008. The second reading of Eurozone GDP showed growth fell by a record 3.8% in the first quarter, with analysts warning of a deeper contraction in the second quarter.
“As the lockdowns had a far larger impact in terms of depth and time in 2Q than 1Q and the reopening of economies will happen just gradually, the decline in GDP will be far larger in the second quarter,” ING said. Read more...
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THIS WEEK IN THE FOREX MARKETS
Trading Insider | 18 th May 2020
As lockdowns ease, commodity currencies cautiously move up
SINGAPORE (Reuters) - The dollar wavered on Monday as investor optimism about the re-opening of economies around the world lifted commodity prices and exporters’ currencies, while talk of negative interest rates held the pound near an almost twomonth low. Oil futures LCOc1 rose 3%, nudging the Canadian dollar CAD=D3 a touch higher. Dalian iron ore futures DCIOcv1 hit a record peak, helping lift the Australian dollar from a one-week low. As centres of the coronavirus outbreak from New York to Italy gradually lift restrictions, the improved sentiment also supported other Asian currencies. But tension between the United States and China tempered the overall mood and kept a lid on broader gains. The New Zealand dollar NZD=D3 rose 0.4%, though at $0.5956 it could not break past 60 cents. The Aussie AUD=D3 was up half a percent, but still remained under 65 cents at $0.6455. The Chinese yuan CNY=, a barometer of Sino-U.S. tensions, barely moved from a one-week low hit last week - highlighting the caution underpinning traders’ outlook. Read more...
THIS WEEK IN THE FOREX MARKETS
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Trading Insider | 18 th May 2020
British Pound Slumped Post Brexit Talks, GBP/ USD Eyeing Reversal?
The British Pound declined on Friday as Brexit talks fell short of making meaningful progress. Michel Barnier – EU’s Chief Brexit negotiator – mentioned that he is ‘not optimistic’ about talks. Across the English Channel, UK Chief Negotiator David Frost said that ‘very little progress’ was made toward the EU pact. With both sides appearing to head for a stalemate, further uncertainty took to its toll on Sterling amid Covid-19. The S&P 500 and Dow Jones rose 0.25% and 0.39% respectively in a rather quiet session. Risk aversion sank in on a couple of developments. Fears of US-China trade tensions escalated as the White House moved to cut Huawei off from global chip suppliers. According to a person close to the Chinese government, the nation is ready to take countermeasures. This may include suspending Boeing airplane purchases. Retail sales in the world’s largest economy contracted -16.4% m/m in April which both missed expectations and was the sharpest drop on record. A final push from equities into Wall Street close trimmed earlier losses. Still, the haven-linked US Dollar outperformed as well as the similarly-behaving Japanese Yen. The growth-linked Australian Dollar depreciated.
MONDAY’S ASIA PACIFIC TRADING SESSION Top-tier event risk during Monday’s Asia Pacific trading session include first-quarter Japanese GDP data. If it sours sentiment by further revealing the severity global growth is facing amid the coronavirus, the Japanese Yen could appreciate. This is as the Federal Reserve warned on Friday that there could be a ‘major decline in asset prices’ if the pandemic worsens. Read more...
Trading Insider | 18 th May 2020
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Trading Insider | 18 th May 2020
KEY ANALYSIS OF MAJOR PAIRS
EUR/USD
EUR/USD Eurozone industrial production plunged by 11.3% in March, as manufacturing as been hit hard by the Corvid-19 pandemic. German CPI accelerated to 0.4% in April, up from 0.1% a month earlier. Germany’s economy contracted by 2.2% in Q4, after a loss of 0.1% in Q3. In the eurozone, second-estimate GDP declined by 3.8%, confirming the initial read. In the U.S., inflation tanked in April, as the economy continues to buckle under the weight of the Corvid-19 pandemic. CPI declined by 0.8%, down from -0.4% a month earlier. The core read fell by 0.4%, down from -0.1% in the previous release. Both figures missed their estimates. Unemployment claims continue to fall and dropped below 3 million last week, with a release of 2.98 million. Still, this missed the estimate of 2.5 million. Retail sales were a disaster in April – the headline figure fell by 16.4%, while the core read declined by 17.2 percent. Analysts had projected declines of -12.0% for the headline and 16.4% for the core releases.
EUR/USD Longer Term view APRIL 20th,1.0870 – Euro’s recovery from 1.0640 peaked at Key resistance & narrowing 1.1145 – 1.0770 corrective consolidation precedes next Trend move
EUR/USD DAILY UPDATE Sustained break below 1.0770 support will complete the Euro’s Triangle consolidation; establishing an initial downside Target of 1.0640, with potential toward the 1.0300 level over coming weeks.
Trading Insider | 18 th May 2020
GBP/USD
GBP/USD In the U.K, first-quarter GDP declined by 2.0%, the first decline in three quarters. Analysts had expected a sharper decline of 2.6 percent. Monthly GDP plunged by 5.8% in February, but this beat the forecast of -7.9 percent. On the manufacturing sector, manufacturing production fell by 4.6%, the first decline since November. This figure beat the estimate of -6.0 percent. In the U.S., inflation contracted in April, as the economy continues to buckle under the weight of the Corvid-19 pandemic. CPI declined by 0.8%, down from -0.4% a month earlier. The core read fell by 0.4%, down from -0.1% in the previous release. Both figures missed their estimates. Unemployment claims continue to fall and dropped below 3 million last week, with a release of 2.98 million. Still, this missed the estimate of 2.5 million. Retail sales were awful in April – the headline figure fell by 16.4%, while the core read declined by 17.2 percent. Analysts had projected declines of -12.0% for the headline and 16.4 for the core releases.
GBP/USD Longer Term view APRIL 21st,1.2440 – Sterling’s advance from 1.1405 March low is losing upside momentum and cautions risk of sell-off back toward 1.2180/1.2150
GBP/USD DAILY UPDATE Sterling’s sold-off well and there is still potential for this decline to extend toward Key 1.1880/1.1850 support over the coming days,
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Trading Insider | 18 th May 2020
TOP TRADING EVENTS
TOP TRADING EVENTS
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Trading Insider | 18 th May 2020
COT DATA
COT DATA
AUSTRALIAN DOLLAR COT REPORT
BRITISH POUND COT REPORT
CANADIAN DOLLAR COT REPORT
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Trading Insider | 18 th May 2020
COT DATA
COT DATA
EURO COT REPORT
JAPANESE YEN COT REPORT
NEW ZEALAND DOLLAR COT REPORT
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Trading Insider | 18 th May 2020
COT DATA
COT DATA
SWISS FRANC COT REPORT
US DOLLAR INDEX COT REPORT
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Trading Insider | 18 th May 2020
Trading Insider | 18 th May 2020
FOREX TRADING ARTICLE
FOREX TRADING ARTICLE GOLD TECHNICAL ANALYSIS 2020 - GOLD TRADING TIPS FROM PROFESSIONAL TRADERS!
Gold Prices News and Forecast 2020 UPDATE: Gold reaches October 2012 Levels! The Prices of Gold are gaining pace amongst the current uncertainty that this pandemic holds. Our Platinum Analysts have commented in last week’s commodity trading meeting that if there was a 2nd break wave of the Corona in October, then we could see the price above $2000. Gold Futures are currently sitting around $1765.70, and this is all due to the inflow of money from the Central banks pushing Gold past the October 2012 levels. As Trader’s, you need to understand that the only way for Gold is Currently up as the stock market in the long term will suffer. The Federal Reserve has been talking of negative interest rates this Sunday which may not seem practical but could be a possibility. They have also warned that the Economy could take over 12-15 months to recover, which leads the average investor to the path of Safe Haven, i.e. Investing in Gold! This year itself bullion has gained 16%, and we see a further 10-15 % by December 2020. Also with the rise of Gold, we can see all the other metals like silver and palladium make a swift move to the upside. Would you like to take advantage of the next Gold Bull Run to $2000 then learn how Platinum Analysts will be trading this commodity on our two day Gold Trading Course this week! Sign up here. Remember when trading Gold Futures it’s about thinking long term and taking minimal risk. Please continue to read our Gold trading blog to learn how to trade Gold! Stay Safe and wish you the best for the month of May!
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Trading Insider | 18 th May 2020
FOREX TRADING ARTICLE
Coronavirus 2020 Gold Update: Gold has been one of the best-performing assets for the year so far and closed at $1,625 this Friday (April 3rd). Many Financial Pundits such as our dear friend and author, Mr. Robert Kiyosaki, the author of Rich Dad Poor Dad have been predicting this exact scenario and advising clients about investing in physical Gold to protect yourselves from times like these. Over the last three months, the financial markets have been going through turmoil, and Gold has outperformed on the markets as the Stock Markets have crashed! Nirav Shah, our CEO, has been warning us about this crisis for more than 8 months and pointed out very fundamental facts about this financial crisis and believes trading Gold could make you substantial profits. Please click here to download his book “Unsustainable.” The actual fact is Gold Dealers are in a difficult situation around the world as they are struggling to find Gold to sell, and this could take Gold on a massive bull run in the coming months. If you are new to trading Gold, then learn about how to trade Gold and make money from this asset class in our Commodities for Beginners trading Course. Becoming a successful trader is already a pretty challenging feat to achieve, adding in the fact that you need to learn essential skills and become familiar with currencies that you’ve never traded before. A trader goes through rigorous training to enhance their discipline and experience and, if you make the right moves, becoming a trader is one of the most lucrative jobs out there. One of the reasons why people flourish in this field is because they’ve got a knack for predicting how the trading tides will go. Experts utilise multiple types of fundamental, technical, and even sentiment factors in order to determine how one yellow metal will move in the market; Yes, the market also includes trading gold! Considered as both currency and as a commodity, gold is widely regarded in the market in US dollars, and it is traded over the counter, as well as an exchange-traded instrument. The normal trader may not even think to consider trading gold, but it’s actually something that you should look into because of its many pros.
Trading Gold Gold is actually considered as a safe-haven asset which increases its value whenever the markets are looking for an alternative to currencies that are losing their value. This is because as interest rates decline all over the world, there is a demand for a type of currency that will be able to keep its value relatively consistent. Similar to dollar rates or Euribor rates, gold possesses a forward interest rate called the Gofo rate. The Gofo rate increases its rate relative to the US dollar whenever the demand for gold rises. The trick for expert traders is that they evaluate three dimensions that will give them a well-rounded perspective on the gold market.
Trading Insider | 18 th May 2020
FOREX TRADING ARTICLE
Gold Technical Analysis Veteran traders employ a tried-and-tested method of analysing the long term trend in the gold market by evaluating a weekly chart. This is because gold prices trade and trend sideways, very similar to other capital market instruments. Expert traders use a lot of tools in their arsenal in order to determine whether the price will trend, or remain relatively the same. MACD or moving average convergence divergence is an extremely useful momentum index that takes advantage of a moving average in order to create a crossover signal. That crossover signal will then let you know whenever a positive or negative momentum is accelerating. Seasoned traders that use the weekly MACD crossover on gold prices to determine if the momentum is accelerating upward. Relative strength index or RSI is also another momentum indicator that describes whether the gold prices are accelerating, in relation to the last 14-periods. The key to making the most out of this is to take a look at the previous highs and to gauge just how far the momentum was able to accelerate in the past.
Analysis of Gold Market Sentiment While there are several figures you can utilise for Gold technical analysis and to guage the gold market sentiment, the leading method is by using the Commitment of Trader’s report released by the Commodity Futures Trading Commission. This report will give you the most accurate view of understanding market dynamics that will affect the gold market sentiment. These reports will show position data that is detailed by category. The information found in these reports is given to the CFTC by clearing members and experienced brokers. While they are not obligated to report the reasons behind these, expert traders can easily make deductions about those positions. In terms of gold futures and options, these categories include managed money, swap dealers, and any other reportable that are relevant. The swap dealers you will find include banks, along with industry-specific merchandisers. Whereas managed money contains pension funds, mutual funds, hedge funds, etc and the last of the reportable are usually retail trades.
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Trading Insider | 18 th May 2020
Watch this video: How to Trade Gold: Top Gold Trading Strategies and Tips (06mins 10secs)
What are the gold fundamentals? It is indisputable that the most important gold fundamental is whether the US dollar will rise or fall. This dependency of gold on the US dollar is based on the fact that gold is priced in US dollars. Hence, when the dollar rises, gold becomes an even more expensive and attractive currency. This only means that gold prices must fall in order to accommodate the higher cost of buying it in US dollars. On the other hand, when the dollar declines, the reverse is true. Traders are accustomed to following how the dollar performs compared to the Euro along with the yen, as these two consists most of the transactions that happen all around the world on a daily basis, One of the most important things about gold is that it serves as a hedge against higher inflation as well. Whenever inflation is on the rise, the gold prices are able to offset increases. In a nutshell, predicting gold prices has no cookie-cutter formula, thanks to its fluctuating nature. For gold technical analysis, You will need to utilise all available indicators in order to predict the future direction of gold prices. However, It’s not just all up to you to find the perfect combination of technicals to trade, learn more about our community and professional trading systems on a free consultation call.
Trading Insider | 18 th May 2020
FOREX TRADING ARTICLE
FOREX TRADING ARTICLE BEST CURRENCY PAIRS TO TRADE IN 2020
What is Currency Trading? Forex currency trading involves buying and selling currency pairs to take long and short positions in the market to generate profits from currency pair price movements. Knowing which are the best currency pairs to trade requires an understanding of what forex currency trading is, and what currency pairs are. As of 2019, there are 195 countries in the world from which there are 180 official national currencies circulating. Couple that with the fact that cross border commerce/trade amongst the world’s nations is constantly increasing, and consumers all over the world are now able to make small scale online purchases for goods and services from providers in virtually any foreign country, the need for the efficient exchange of different currencies to facilitate international commerce at all different levels becomes inevitable. Whether it’s a nation’s central bank fulfilling the needs of its currency reserves, a large multi-national corporation making large cross border transactions in the course of conducting business, large financial institutions servicing their large international clients, forex traders/speculators taking positions on certain currencies, or even something as simple as a tourist taking a weekend holiday to a neighboring country, all of these activities result in the exchange of one currency for another, hence the need for the Foreign Exchange Market. The Forex Market is the efficient exchange for forex currency trading of one nation’s official currency for another nation’s official currency at a market rate that is free-floating and establish by competitive market forces. The Forex Market is not a centralized institution, comparable to what the New York Stock Exchange (NYSE) and the NASDAQ are to the stock market. The Forex Market consists of a vast decentralized network of broker/dealers that buy from, or sell to market participants, all the currencies of all the different nations of the world. Today, the average daily turnover in the forex market is over $5 trillion per day, making it the largest and most liquid market in the world.
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Trading Insider | 18 th May 2020
FOREX TRADING ARTICLE
Currency Pairs In the forex market, quoted prices reflect the rate at which one currency is exchanged for another. Each individual currency is identified with a three-letter symbol known as an ISO code (International Organization for Standardization), i.e. USD for US Dollar, EUR for euro dollar, GBP for the British pound, etc. Forex quote symbols for currency pairs are listed by pairing together the symbols of the two currencies being exchanged. For example, the EURUSD represents the currency pair that includes the Euro Dollar against the US Dollar. The GBPJPY represents the British pound against the Japanese Yen. The order in which the symbols list is of key significance in a forex quote. The first of the two symbols is referred to as the base currency, while the second is referred to as the quote currency. The amount quoted indicates how much of the quote currency is required to purchase one unit of the base currency. For example, a EURUSD currency pair quoted as 1.0812 indicates that it takes 1.0812 US Dollars to acquire 1 Euro Dollar. This rate will fluctuate to reflect changes in the supply and demand of the two currencies in the pair. Some of the best currency pairs to trade are the pairs with the most volatile price fluctuations.
Trading Insider | 18 th May 2020
FOREX TRADING ARTICLE
Currency Pairs Price Movements The price of a currency pair increases and /or decreases based on the value of one currency in terms of the other in the pair. Currencies appreciate of depreciate against each other for various reasons, including the government policy, interest rates, trade deficits, and business cycles. It’s very important to understand that currency price movements cannot be viewed in the same way as price movements of other types of assets. Using stock as an example, it represents ownership in a corporation which conducts business operations to foster constant growth and appreciation in the value of the corporation. Therefore, the price of a stock should consistently increase. Similarly, currency represents the economy of a country. The pairing of two currencies to form a rate, in essence, represents the value of the two economies relative to each other. Consequently, the underlying economic factors of the representative countries will have an effect on the currency rate of exchange. An economy experiencing growth will result in a currency appreciating, and the exchange rate will adjust accordingly depending on how the rate is quoted. The country with the weakening economy will experience currency depreciation, which will also have an effect on the exchange rate. The important distinction between a stock and a currency is that for a stock, perpetual value appreciation is expected. On the other hand, for a currency rate, too much appreciation can have a negative impact on the underlying economy of one of the countries quoted in the rate. For example, for a country with an appreciating currency, imports become cheaper, which translates to a benefit of lower prices, leading to lower overall inflation. However, that same currency appreciation makes export more expensive to foreign buyers, and ultimately curtails demand for the country’s products. This eventually leads to a reduction in GDP, which is definitely not a benefit. Consequently, the fluctuations in currency rates ultimately reflect the economic and business cycles relative to the underlying economies of each of the countries in the currency pair and are driven by market forces. Many of the best currency pairs to trade are the pairs with the currencies of countries with the most stable and robust economies.
Trading Currency Pairs When trading a forex currency pair, traders trade the pair as a single instrument and the rate of exchange for the two currencies in the pair is the price that traders focus on to generate profit from market fluctuations. These rates (more often referred to as prices by traders) will fluctuate much the same way as stock prices do base on market volatility. Traders are able to profit from these price movements by taking a long or short position using various financial derivative instruments. Additionally, the forex market trades 24-hours a day, 5-days per week allowing for a greater range of daily price movement resulting in more trading opportunities.
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FOREX TRADING ARTICLE
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Trading Insider | 18 th May 2020
FOREX TRADING ARTICLE
Trading Insider | 18 th May 2020
Within the forex market exist the spot market. The spot market is the most popular forex market used for speculative forex trading. Itis a standardized market in which forex pairs can be bought and sold using standardized spot contracts of 100,000 units of the base currency referred to as lots. Forex lots can be bought and sold very similarly to how stocks are bought and sold in the stock market. The value of a standard lot is determined by the quoted rate multiplied by 100,000. However, the amount of capital necessary to buy or sell a lot to assume a long or short position is determined by the margin requirements of the broker that is used. These requirements vary widely from broker to broker. Standard lots can also be broken down to smaller contract denomination. A mini-lot is 10,000 units, and a micro-lot is 1000 units of the base currency. Using smaller lot sizes allows forex traders to trade with smaller capital requirements and helps to better manage risk.
Best Currency Pairs to Trade Price volatility, volume, wide intraday price range, and tight spreads are key elements required in order for a trader to successfully generate profits from forex currency trading. The best currency pairs to trade in the forex market are those that possess an abundance of these key elements. Currency pairs vary with respect to their trading attributes.
Watch this video: What are the most traded currency pairs? (03mins 32secs)
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Trading Insider | 18 th May 2020
All 180 official currencies are paired with each other to form a currency pair for the purpose of completing cross-border financial transactions. But not all pairs are suitable for trading. Currency pairs that are associated with theUS Dollar and are the most widely used currencies are categorized as major currencies. These include the GBPUSD, EURUSD, USDCHF, USDJPY, AUDUSD, and USDCAD. These are by far the best currency pairs to trade in the forex market. They are the most liquid, and therefore have the tightest spreads. They are all paired with the benchmark US Dollar, so they exhibit a wide daily price range and volatility. These are all attributes that traders desire in a tradable asset. The major currency pairs account for a significant portion of the daily trading volume in the forex market. Currency pairs referred to as “crosses” or “minor currencies” are not considered by many traders to be the absolute best currency pairs to trade, but some nonetheless are worthy of trading. Many of the pairs that fall into this category, including the GBP/ JPY, EUR/GBP, EUR/CHF, etc.have sufficient volume, range, and volatility to allow for generating profits, they just have to be traded using different strategies than those used to trade the major currencies. Successful forex currency trading ultimately relies on entering positions that capture price movements resulting from inefficiencies in the supply and demand of a currency. The currency pairs that consistently exhibit these price movements are the best currency pairs to trade. The major currencies can always be relied upon to provide such price volatility on a daily basis.
Trading Insider | 18 th May 2020
FOREX TRADING ARTICLE
FOREX TRADING VIDEO mastering trading forex reversals strategy
Today we would like to discuss our Market Cap Strategy. I know it sounds a bit complicated, but in reality, it’s straightforward to use for all levels of traders. Every Morning our system gives you daily reversal levels on the six major currency pairs. Do we have a magic lamp absolutely not! But we have over two decades of trading experience and an algorithm that calculates where the markets will stop and reverse. This strategy could make you around 2500 Pips a year if you followed it with the correct risk management and Platinum Forex Trading Practices. Watch our video today and feel free to like and subscribe :-) The Platinum Trading System has six amazing strategies that have been used for over the last 11 years! Just email us on here to get the system installed and watch it live in action!
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Trading Insider | 18 th May 2020