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Best Currency Pairs to Make More Profit in Forex without Losing so Much

When I first started trading Forex as a young man fresh out of university, I lost a lot of money trying to chase big profits by trading volatile currency pairs recklessly. It took me a while to learn that in Forex, consistency is key and slow, steady gains were more realistic than gambling on risky pairs hoping to double my account overnight. 

In this article, I will share the top currency pairs in Nigeria that are suitable for making consistent profits without the big risk of loss due to volatility. 

What is Forex Trading?

Forex, also known as foreign exchange or FX, is the largest financial market in the world with over $6 trillion traded daily between participants. In Forex, you can buy and sell currencies from different countries and make money from fluctuating exchange rates. For example, if you think the US Dollar will rise against the Euro, you would buy USD/EUR and profit if the dollar indeed strengthens against the euro.

A big mistake new Forex traders often make is jumping on volatility without considering risk management. High volatility means bigger market moves, which translate to bigger profits but also bigger losses if the trades go against you. The key is to pick currency pairs that offer steady moves and lower risk, like:

Best Currency Pairs to Make More Profit in Forex without Losing so Much

The major currency pairs make up over 90% of all trades in the Forex market. These include:

EUR/USD (Euro vs US Dollar)

As the two most heavily traded currencies, EUR/USD enjoys ample liquidity and tight spreads. Its moderate volatility makes it suitable for day traders and position traders alike. This pair generally moves in coordination with economic data and geopolitical events from Europe and America. 

GBP/USD (British Pound vs US Dollar) 

Also a liquid pair, GBP/USD has daily movements directly tied to UK economic statistics and Brexit developments. It has slightly higher volatility than EUR/USD due to the UK economy’s exposure to global risk factors. However, the moderate moves allow for consistent profits over time.

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USD/JPY (US Dollar vs Japanese Yen)

Characterized by low volatility and tight spreads, USD/JPY is well-suited for conservative traders. As a safe haven currency, the Yen’s demand fluctuates with global risk sentiment – this pair benefits from trending periods driven by macroeconomic themes.

The Minor Currency Pairs

While offering less liquidity than majors, these mid-tier currency pairs can still deliver steady returns within an acceptable risk profile:

AUD/USD (Australian Dollar vs US Dollar)

Correlating closely to commodity prices like iron ore and gold, AUD/USD moves tend to follow broader risk on/off trends. Its moderate volatility means follow-through from both positive and negative catalysts. This pair is easier to trade during overlap between Australian and US trading sessions. 

NZD/USD (New Zealand Dollar vs US Dollar)  

Driven by global dairy prices, this pair follows a similar high-beta risk profile to AUD/USD. Opportunities arise from policy shifts or data surprises in either America or New Zealand. The best strategy is to aim for frequent, smaller gains rather than infrequent outsized profits with this mid-tier currency.

EUR/GBP (Euro vs British Pound)

Political news has strongly influenced EUR/GBP price action in recent years but cross-border economic reports also impact trends between these two European neighbors. Traders may look for setups at technical levels or following data/speeches on either side of the Channel.

USD/CAD (US Dollar vs Canadian Dollar)

As Canada’s top trading partner, the USD/CAD pair often moves on conflicting policy signals between the Bank of Canada and US Federal Reserve. Although less liquid than the majors, opportunities emerge from breaks of major chart levels and mixed domestic indicators.

Tactics for Steady Profits

Now that we’ve covered suitable currency pairs, here are some successful strategies Nigerian Forex traders use to produce steady gains over months

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Stick to the Major Pairs 

Aim for small wins each day by trading reversals, breakouts or retracements within major pair ranges. Scalp 5-10 pips during higher volatility sessions for consistent profits. This low-risk approach minimizes drawdowns.

Use Stronger Timeframes 

Analyze daily and 4H charts to filter only high-probability trades. Look for consolidation periods ending in breakouts or fakeouts near key higher timeframe levels.Enter trades only during low-volatility periods for follow-through. 

Focus on Fundamentals 

Watch economic indicators and central bank meetings on pairs like EUR/USD, GBP/USD. Trade the initial reaction to surprises rather than reverting moves, which carry more two-way risk. Fundamental catalysts often spark multi-day trends.

Trade Major Cross Pairs Too

For experienced traders, keep an eye on liquid cross pairs involving USD, EUR and GBP. Look for divergences at chart resistances on EUR/JPY or GBP/AUD, for example, and trade the resumption of prior trends for consistent 10-20 pip gains.

Conclusion 

By choosing currency pairs with steady, lower volatility profiles and concentrating on strategic entries driven by technical patterns, news or liquidity flows, Nigerian forex traders can gradually build their accounts over weeks or months through optimization and discipline. 

Avoid chasing volatility with overly aggressive trade sizes. Remain patient, sticking to pairs and strategies that historically delivered small wins more frequently for the soundest path to consistent profits.

I hope this guide provides a solid starting point for trading currency pairs profitably in Nigeria without assuming undue risk.

FAQs

What pairs move 100 pips a day?

Forex currency pairs like EUR/USD, GBP/USD, and USD/JPY are known to move 100 pips a day under the right conditions. Additionally, currency crosses such as GBP/JPY and EUR/JPY exhibit heightened volatility, offering daily ranges of more than 100 pips. For those keen on trading the most volatile pairs, exotics like USD/TRY and EUR/ZAR can provide significant price movements, with average daily ranges of 150-300 pips.

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