When it comes to winning trades, it’s not about how many winners you have, it’s about how big your winners are. Over-analyzing the markets 24/7 does not mean you will make any more money, effort can often mean nothing. You need to get the market direction right. That’s it.
Imagine that others slave for hours trying to keep up with every currency pair and you have just a handful of pairs you trade for a living with less than an a hour research each day. It seems to easy to be true, but it is a very established tactic most successful traders use. Hence, we’re listing only top 3 currency pars to trade in 2017, that you can try to focus on starting from today.
1. EUR/GBP
Since the UK voted to leave the European Union, the GBP has been dramatically weaker against the Euro. Upcoming Brexit talks promise to generate a huge amount of volatility this year as an undervalued GBP is countered by the rising prospect of higher interest rates in the Eurozone. Plus given the news driven nature of the pair recently you can use social media to stay ahead of the game as the exit negotiations progress. This year there will likely be no greater opportunity for volatility than in EUR/GBP market.
2. USD/JPY
One of the world’s most traded currency pairs, with an extremely narrow spread – USD/JPY is a great barometer for risk sentiment. Recently a tremendous risk-on rally sparked by the French election result has seen the pair rally vigorously. It happened after it had been tracking lower as the “safe haven” Japanese Yen. It had been boosted by rising political tensions around the world. With President Trump in the White House and North Korea continuing to make threats it seems that there are a lot of surprises to come this year. This probably means more trading fireworks in USD/JPY market.
3. EUR/NOK
While not among the major pairs, the Euro/Norwegian Krone is an intriguing prospect. A historically weak Krone has been rising and falling with the Oil price (the major export product of Norway). Throw in the rising chance of some more hawkish policy by the ECB (European Central Bank) and this pair could continue to show the big weekly moves that have characterized it of late. Now that Norway made more money from its wealth fund than from Oil for the first time, should Brent and Crude dictate its future? This year we will find out if the NOK can find its feet again or if there are fresh highs for the Euro to come.