The currency pair you choose is very important because this is what decides your profits in trading. It’s good to choose the pairs which you really understand. I trade major pairs because of their stability.
From my point of view, USD/JPY is one of the best currency pairs. There’s one fundamental thing that makes it more predictable than others. Japan is known as one of the major exporters. Therefore, it’s crucial for this country to devaluate its currency against the evergreen buck. If you take a closer look at this pair, you may see that it’s prone to go up because the Japanese is interested in evaluating its currency. Moreover, the Bank of Japan keeps a negative interest rate. It’s a very good currency pair for those who like to be an active bull. Of course, from time to time it corrects as any other financial instruments, but in most cases USD/JPY goes up.
There are more than 60 currency pairs that traders can choose, but not every pair is equally profitable.The pairs with high liquidity are more stable but the profit potential is lower. On the other hand, the pairs that are volatile can be risky but the chances of making huge rewards are more. Personally, I trade EUR/USD and USD/CAD the most.
HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors.
Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance.
You could lose some or all of your initial investment. Do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.
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