Previously, one thing we looked at was Picking a Favorite Market to Trade. When you are looking at trading, there are a lot of things to consider and one of them is what you are going to trade. A lot of traders have a currency or pair that they identify with. Shawn Lucas, for example, is a EUR/USD trader. This is actually the pair that most traders connect with in the world. Looking at the pairs everyone trades, including the EUR/USD, there are lesser known pairs that don’t get attention but are still great for trading. So, here are a few different currency pairs that can be tried in trading.
XAG is the symbol for Silver. The silver market is an excellent market to start trading if you are looking to get into precious metals. Currently, it's not expensive to trade and pretty low on multi year chart. Silver is used as a hedge against hyperinflation and is a great market to trade along the USD pairs you may already trade due to their correlations. Another thing to keep in mind with silver, is due to the fact that you are trading in ounces rather than currency to currency, pips are the second decimal, so the pennies. You also make 5 times as much for the same amount of “pips” since you are dealing in terms of mass. This makes XAG/USD a quick money maker in terms of trading.
XAU is the symbol for Gold. Gold and silver are very similar in their patterns and how they correlate in the markets. With Gold, however, the “pips” is the first decimal. So for every dime that gold moves, a “pip” is earned. It follows a lot of the same ideas as Silver. And like silver, is also a favorite of Shawn Lucas, especially as a long-term investment depending on chart position.
The Swiss Franc (CHF) is an interesting currency when it comes to trading. Switzerland is part of Europe but is not a member of the European Union. Since the Franc is not a EU country, it is traded independent. This gives the CHF additional time trading that the Euro does not get. Trading for the Swiss is usually highest between 1 AM Eastern time to around 11 AM Eastern. The Swiss also usually falls in long trends that can be taken advantage of well.
The Pound/New Zealand Dollar pair is one of the fastest and largest moving pairs you can trade. Movements can exceed 200 pips from open to close with a plethora of intraday movement as well. If you're a fan of fast moving markets, whether you trade by scalping or long term, the GBP/NZD does not shy away from large profit movements, as long as you can get on the correct side.
There are many other pairs that one can look into. While not necessarily for everyone, sometimes the lesser known currency pairs can bring all the fun. It is the same idea as reading a new author. While you are fond of your certain book set and can read the same ones over and over, switching to a new author can introduce you to worlds unknown. New markets open the doors to more profit. Don’t be afraid to try something new, just try it in a simulated account first so you don’t lose all your profits.