After the wide outbreak of COVID-19, there has been a widespread panic over how it will affect the global economy. Traders have been speculating as to how this will affect the forex market.
In the year 2020, the forex market has remained quite stable as compared to the other markets. The main currencies driving this market are Euro and USD. February 2020 saw a value-added to Euro due to the outbreak in Italy. Since March 2020 there has been a daily movement between 100 to 300 on the pips chart on EUR/USD.
Although there is a lot of uncertainty about how the forex market will react in 2021 with the outbreak of a new strain of COVID-19. However, there are still several reasons that could lead to a profitable trade in this market. Forex signals can help you to understand when to invest or liquidate your funds in this market for a profitable investment (pips profit).
Here are some of the top forex pairs that you can choose from -
This represents two major economies of the world. The major part is highly liquid. The exchange rate is reliant on European Central Bank and US Federal Reserve interest rates.
The exchange rate is reliant on the interest rates set by the Bank of England and US Federal Reserve Banks. One additional factor monitoring this currency is the UK's departure from the EU.
The US Dollar and Japanese Yen is one of the major pairs in the exchange market and shows the highest form of liquidity. USD is one of the most traded currencies in the global market and the Japanese Yen is the most traded in the Asian market.
Before investing in any of the currency pairs, we recommend you take note of forex signals in order to make an informed decision. You can also subscribe to daily forex tips to get regular updates about the forex market.
The forex market has caused huge losses to inexperienced and uneducated traders over past years and therefore there are certain live Forex tips that you need to consider before investing in this market.
#1. Clearly Define Your Risk Tolerance
The first step for investing in the Forex market is to know your risk tolerance. Also, you should make sure that your risk tolerance and capital allocation in the market is not excessive.
#2. Choose Forex Signal Provider Carefully
There are zillions of Ponzi schemes operating in the market and you should be aware of them. Therefore, we recommend that you should choose a reliable signal provider and broker that will help you to multiply your returns in the Forex Market.
#3. Begin With Small Investment Amount
One of the best Forex Trading Tips is that you should start with small sums and low leverage. Simply pumping money into the account without any returns can result in huge losses.
#4. Never Rely on Forex Robots
It is no surprise that unproven and untested methods are extremely popular nowadays. These methods generate huge profits for their sellers and give a little return for the hopeful buyers. Never rely on such schemes.
#5. Never Go Against the Market
Until and unless you don’t have a finance resilience, stick to the long term plan that you have decided. If you are a beginner to the Forex Market, it is advised to never go against the trends.
Forex Market is a risky game that can result in huge profits but huge losses as well if you don't invest with caution. Therefore it is important to consider Live Forex Signals and above Forex Trading Tips to ensure huge returns from this market.