Should You Trade Only the Major Forex Pairs?

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#536: Should You Trade Only the Major Forex Pairs?

In this video:
00:32 – Should I trade just the Major FX pairs?
01:34 – Don’t limit your options.
03:08 – Trades on Minor and Exotic pairs this week.
04:00 – Be careful with Sell trades and widening spreads.
05:10 – Attend my Masterclass and book a call with us.
05:22 – Webinar with The5ers.
05:38 – Blueberry Markets.       

Is it best to trade the major forex pairs only, or is it best to trade the exotic pest? It’s a question that I get asked quite often, and this week I’ve got some great examples of why I trade both. Let’s get into it a more right now.

Hey there, Forex Traders! This is Andrew Mitchem here. The Forex Trading Coach with video and podcast number 536.

Should I trade just the Major FX pairs?

So as more and more platforms and more brokers offer more currency pairs, the question becomes, should I just focus on the major currency pairs? And there are obvious advantages to that. Pretty much the main ones would be spreads are generally tighter, you generally find the gaps and you generally find there’s more people trading it. So the volume, liquidity, etc. is better.

Therefore the moves are generally more flowing, more consistent. It also means, if you like, trading the shorter time frame charts that you or like trading quite often with frequency, you’ll find that you’ll find the spreads been so much tighter means that you can take trades on shorter time frames and more often and you’re not paying, you know, massive spreads in the big movements just to get to break even. So there are certainly some advantages to trading just the major pairs.

Don’t limit your options.

Now, some of the disadvantages would be this one, it completely limit your options. So to me as a trader who’s looking for sudden like couple of patterns, why limit your options? It’s like, why limit the markets? This week I’ve taken trades on the Nasdaq and the S&P and we’ve taken trades on the JPN225

So why limit to just, you know, the forex pairs? That’s my thought. If the system the strategy worked on other markets as well. Last week you’d have heard me talking about a corn trade that I took, you know, which quite often take metal trades. We take crypto trade. So I don’t think you should limit yourself if you find that your strategy worked on those other markets.

Likewise, the downside were trading and focusing just purely on the main major forex pairs is that you tend to find they pretty much get dominated by the US dollar. So for instance the EUR/USD, GBP/USD, AUD/USD, the NZD/USD, USD/JPY, the USD/CHF and you know the old US dominant. And of course there are other, you know, sort of major pairs as well, but you tend to find that the US and you know and the yen kind of dominate those major pairs and you can find that from time to time there will be some quite dull price action. And we’ve already seen that for parts of this year. So far we’ve you seeing some quite dull price action on some of the major pairs.

Trades on Minor and Exotic pairs this week.

So moving on to the exotics and the minor pairs, just this week I’ve taken trades on the NZD/CAD, the NZD/SGD, the USD/ZAR, the SGD/JPY and the CHF/SGD.

So I’ve taken profitable trades on those. Now my prop firm account you’d have heard me mention last week was, you know, continuing to go well this week. So far we’ve still got all of one or Friday still to go. I’m at 1.9% with 0.25% risk trade. So for me, if you can average that sort of one and a half to two and a half percent per week on a prop firm with incredibly low drawdown, you only need a few weeks and you passed your next firm challenge.

So for me, that’s why I look at other pairs as well as just the majors, because they get more trading opportunities.

Be careful with Sell trades and widening spreads.

Now, one of the things just to add from a practical, realistic point of view that unless you trade, you probably won’t know this. It’s just be very careful, especially on sell trades on those exotics, because certainly at the close of the day that 5 to 6 p.m. New York time, the spreads can widen quite a lot.

And especially if you want to sell trade, make sure you know the difference between a bid and ask, especially on a sell trade. With the spreads widen it potentially could take out your stop loss at that time. If you have a trade open on one of those exotic pairs when you know sometimes the spreads can blow out to 15, 20, 30 pips at times at that time of day they close of day.

So just be mindful that it doesn’t affect you so much if you’re on buy trades and but just be careful if you’re on a sell trade and you have trades open at that time of the day. It’s another one of the reasons why for me personally, I like to take trades on those exotic pairs on like the 12 hour chart or daily weekly.

You know, there’s longer timeframe charts where the stop loss is a big a bigger distance away. It just protects you from potential widening of spreads.

Attend my Masterclass and book a call with us.

Couple other points. If you’ve not been on my one hour masterclass, I’m going to put a link to that masterclass here so you can jump on to that. I really encourage you to do that. It contains a lot of information.

Webinar with The5ers.

If you’ve not yet seen my webinar that I held just last week with the prop firm called The Five Percenters really encourage you to do that. And again, up a link to that here as well. Some great tips and information about how to successfully pass prop firm challenges.

Blueberry Markets.       

And if you’re out there looking for a really good broker, I can highly recommend Blueberry Markets up a link to them. They offer the MT4 or an MT5. They offer the majors, of course, the minors, the exotics, the cryptos, the commodities, the indices, the metals, everything out they’re looking for. So I put a link to Blueberry Markets as well.

And if you’re on YouTube, don’t forget to like and subscribe and share the video. If you’re listening on the podcast, have been enjoying the podcast.

If you have any other topics or conversations, trading information you’d like me to help you with, feel free to send me an email Andrew@TheForexTradingCoach.com, I get them personally myself. I always respond personally and I will make videos and podcasts just like this one to help you with topics that you need the most help with.

I see you this time next week. Bye for now!

Episode Title: #536: Should You Trade Only the Major Forex Pairs?

Signup For my Forex Masterclass

Find out more about Blueberry Markets – Click Here

Find out more about my Online Video Forex Course

Book a Call with Andrew or one of his team now

Click Here to Watch The5ers webinar

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