Currency pairs are the first thing that a new Forex trader learns. The eight major currency pairs are one of the first things I teach in my courses and usually within the first few minutes of any training. But, what about all the other existing currency pairs? Is it possible to trade any currency pair? A new trader will usually ask such a question.
I’ve watched a lot of trader gurus on youtube and some of them seem to trade more than a dozen different pairs. I used to “try” to follow many different pairs myself, but found that my success improved greatly when I limited my focus to just a few pairs.
Of course it depends on your own trading goals as to which currency pairs you choose to monitor. For example, I like to trade the high impact news releases. So, I choose 1 or 2 currencies that are relevant to the particular news release at the time. If there is no news, then I don’t trade those particular currencies at another time.
Exotic Currency Pair
The pair which I trade the most is the UDSMXN, which is not a major pair but rather an “exotic pair”. As a new trader I would never have thought about trading the USDMXN. But one day I heard Rob Booker mention it in one of his videos and I never looked back. The USDMXN moves a lot and if you watch it during the most active market times, the spreads are usually quite low.
When trading the USDMXN, I use my usual style which is the T-Line on the 5 minute chart. It’s not unusual to gain 30-40 pips in as little as 20 minutes. For more info on the T-Line, read this: T-Line Strategy