Things You Need to Learn to Trade the Major Pairs – Cape Cod Today

Trading the Forex majors is one of the easiest ways to make a profit. Those who trade the cross pairs are having trouble to deal with the market volatility. Ask the position traders in the Australian trading community about their favorite trading assets. The majority of skilled investors will state major pairs trading is easier. But trading the major players like the pro players is not so easy. You have to learn some important things to trade the major pairs. Read this article carefully and you will be able to develop the precise skills to trade the major pairs.

Focus on the daily time frame

You need to analyze the daily time frame since it is one of the most effective ways to make a profit. Those who are new often prefer to trade the lower period. But trading the major pairs in the lower period is very risky. Though some skilled traders managed to scalp the lower period data it is not the perfect way to place the trade. To ensure a hassle-free trading environment, you must focus on the long term goals. And when you start thinking like the professional traders, you will be making decisions based on a daily period. Start using a higher period and you will never prefer to scalp the major pairs.

Use the price action signals

Everyone is biased with the indicators. Many advanced traders in the Forex often say indicators are great tools. Indicator can be a very useful trade filter tool but do you need to use it? If you can learn to trade the Japanese candlestick pattern, there is no reason to trade the market with the indicators. Do indicators never generate signals which can be used in real-time? On the contrary, if you start using the price action signals, you will be placing trades on real-time market dynamics. Though the learning price action trading strategy takes time, it is the most efficient way to make a profit in this market.

Analyze the major news

To trade the major pairs, you must learn to analyze the major news. Those who are relatively new in the trading profession are always losing money since they don’t know the perfect way to analyze the major news. News trading might be a very profitable strategy but it takes years of experience to trade such a volatile market. Being a fulltime trader, always think about the conservative trading method. Never take any aggressive steps as it increases the risk factors. Unless you are skilled at news trading or analysis, never execute any orders before the heavy news release. It’s better to stop trading the market rather than losing money on poor trades. Many traders often trade the cross pairs. The price movement in the cross pair is very unstable. So, stick to the major pairs as it gives a more profitable opportunity.

Use the Fibonacci retracement tools

Trading with the market trend is the most effective way to secure big profits in the major pairs. Those who are trying to scalp the market doesn’t know the benefits of position trading strategy. Try to focus on the long term goals and learn the use of Fibonacci retracement tools. Once you get used to the concept of the Fibonacci retracement trading strategy, you will never face trouble with your trading career. But there is a small twist in the Fibonacci trading strategy. Instead of trading all the levels, focus on the 38.2% and 50% retracement levels. Use the price action confirmation signals before you execute any trade on these levels. Once you start to trade the key retracement level with the confirmation candlestick, you will see a dramatic change in your life. Stop thinking about big profits and try to create a hassle-free strategy. And for that, you should trade the major pairs only. Forget about the cross pairs and analyze the major currency pairs only.