In the world of trading, there are many assets that a trader can use to make profits. Some of them have big movements, but the risks are high, while others have a calm and clear movement for trading. Balance is key. In this article, Headway experts share the list of the best assets for beginner traders.
Gold is one of the most important commodities to trade on. It is considered a safe haven for trading. On a daily basis, gold moves at an average rate of about 200 points and is affected by the news. Therefore, it is considered a good commodity to trade on.
Major currency pairs
Major pairs can be of help to a novice trader. All major currency pairs contain the US dollar. Some currencies appear more frequently than others. Here are the pairs which a novice trader can choose:
This currency pair identifies the US dollar against the Japanese yen. It is considered one of the good pairs to trade on, as it moves 80% within a clear trend and it is easy to predict its movement in the medium and long term.
USDEUR and USDGBP
The Euro and the British pound are among the most common pairs for trading due to the large number of news that affects them and also the large number of traders on these two pairs.
USDCHF, USDCAD, AUDUSD, NZDUSD
The Swiss dollar, the Canadian dollar, the Australian dollar, and the New Zealand dollar are considered good pairs for beginners. It’s because their movement is calm and there are not many fluctuations.
Fun fact: The Canadian dollar is referred to as the looney dollar because its one-dollar coin has a picture of a loon (a water bird) on the reverse side. And the New Zealand dollar has the name of Kiwi dollar – kiwi is a flightless bird pictured on NZD one-dollar coin.
This currency pair defines the British pound against the Japanese yen. He is referred to as the insane. This pair is making big moves. Therefore, the profits are good if the deals are correct. It is considered one of the preferred pairs for traders.
There are also currency pairs that do not trade against the US dollar, which are called cross-currency pairs. Common cross-currency pairs include the Euro and the Japanese yen. Monitor them in your trading: They can bring valuable profits.
In general, be aware of the commodity’s movement – what is the daily average of the commodity’s movement, what are the historical levels, the main support and resistance areas. That way, you can make the appropriate decision for trading.