In this trading products guide, you will learn:
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Our free Telegram channel posts monthly market wraps and trade updates. Between those, sort each product by how strongly it is trending, then pick your entry.
For strong trends, we should aim to enter on small pullbacks, while for weak trends we aim to enter on larger pullbacks.
For ranging markets, we should aim to buy low and sell high.
This will help you find good trading opportunities, and filter out the bad ones!
The EUR/USD is the most traded currency pair in the world, accounting for nearly 30% of the total daily volume in FX. This sheer volume makes it incredibly liquid. EUR/USD is highly sensitive to fundamental news announcements released by the U.S., and due to its popularity, traders can access a wealth of analytical information.
Also known as “cable,” GBP/USD is the third most traded pair. Price movements in cable are known to correlate with EUR/USD. Since the pair isn’t as liquid
as the EUR/USD, GBP/USD experiences more aggressive price movements when U.S. data is released. The UK has the second largest economy in Europe, after Germany.
The USD/JPY is one of the major pair types and is the second most traded pair in the world. Japan has the third largest GDP after the United States and
China. Since Japan’s economy is driven by its exports, the country prefers a weak yen to increase international sales.
The Swiss franc became a safe-haven currency in times of crises due to Switzerland’s history of remaining neutral in times of war. The franc remains a safe haven currency and spikes in price can be seen during geopolitical crises.
Canada’s economy is heavily dependent on exporting raw materials. As a result, the CAD’s strength correlates with the price of oil.
The AUD/USD is considered one of the three most popular commodity pairs. Price action in this commodity pair is influenced by the price of Australia’s
natural resources. In particular, the price of gold is known to correlate closely with AUD/USD.
New Zealand’s economy is heavily dependent on exporting raw materials. As a result, the NZD’s strength correlates with the price of gold.
Conclusion
I hope you have enjoyed this guide on the different trading products available.
Now I’ll like to hear from you: what is your key take-away from this trading guide?
What is your favourite market or product for trading?
What are some of the challenges in deciding which market to trade?
Do you have any other products which you would like to see?
Let me know by leaving a quick comment below right now.
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