Forex Currency Pairs: Pick Profitable Matches made in Heaven !


As a Forex trader, when you open up the list of Forex trading quotes every time,
You must have felt confused and maybe slightly intrigued also when you see
the various pairs that you could potentially trade…

You click and see EURUSD… USDJPY… and then skim through over 40 pairs you can trade on currency alone.

Just like every other life epiphany, you wonder how the pairs are related to each other

“What’s up with the massive selections?”

But most importantly…

“Can You make more pips

if You knew of the juicy secrets

these currency pairs hide?”

Not to worry, You’ve found the right place to feed your curiosity.

Firstly, let’s start with expansions of the basics!

Understanding  “Popular” Currency Pairs

If you are not familiar with this by now, here are the top three most heavily traded currency pairs:

  1. EURUSD
  2. USDJPY
  3. GBPUSD

And I’m sure you have wondered at one point in your trading career…

“So what makes these pairs so special?”

There are reasons why these pairs in particular would be the most popular pairs for you:

–          Follows technical analyses closely
–          Medium Volatility
–          Tightest Spreads

Let’s give a quick rundown how these factors can contribute to more pips when trading with these currencies, and cover the question of…

How can you use this high-value information to your advantage?

Follows Technical Analyses Closely: Because these pairs follow your indicators like ants attracted to sugar, it has a lower risk of failure with technical strategies. This could increase your confidence and stick to your trading plan.

Medium Volatility: We all know that the higher the volatility, the more the profits. However, this increases risk. Inversely, the lower the risk/volatility, the less the profits. That’s where pairs like the EURUSD excel because they give out a fair return with a fair risk.

Tightest Spreads: The smaller the spreads, the more entries you can make in a day because you don’t have to wait too long until you profit over the spread. This means you have more opportunities to profit going in and out multiple trades in a day, making more profits!

Moving on..

Popular Currency Pairs, Their Dopplegangers & Mirror-Images

As a new trader, you be generally select the above mentioned pairs as the “safest” pairs to trade…

and you don’t have to bother with anything else.

But did you know… you don’t have to observe these pairs singularly. In fact, there are other pairs that are correlated (moving in tandem), as well as mirrored (moving in reverse) to these popular pairs.

Warning: Please use this information at your own risk and discretion, and study the charts properly before executing live trades. Learn more about Forex here.

I have a simple table here for you covering the pairs you can start observing alongside each other.

fxpairs

You can open up the charts of EURUSD & GBPUSD (of the same time frame of course),

and observe the movements side-by-side as a start.

You will be shocked when you discover how closely shadowed the candlesticks are! So…

How can you use this high-value information to your advantage?

Correlated Pairs: Since correlated pairs move the same direction, in theory…

if your strategy signals a buy in Both Pairs, you could buy Both currency pairs,

and profit twice as much.

Mirrored Pairs: You probably figured it out by now. But in case you didn’t…

For mirrored pairs, you would want to go long on USDJPY when your strategy signals a buy,

And go short on USDCHF when your strategy signals a sell.

Taking those positions practically doubles your risk but considering that the signals occurred in TWO pairs strengthening the winning rate of your signal, it could be a possible strategic move to use to earn more profits.

Overall… these are a few tricks you can add into your trading arsenal especially in understanding more about the market, and using this knowledge to leverage on towards more profits. In Forex, ignorance is not bliss, and any information about market movements could be valuable to a Forex Trader like you.  For more information about Forex Trading, check out this link.

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