Most probably you are after making money through currency trading or Forex.
One of the most important questions that novice currency traders ask is about the top traded currency pairs or most traded currencies.
The reasons is that they want to choose one of the top traded currency pairs and stick to it during the day.
Some of those who ask about the most traded currencies, are curious to know which currency makes more profit for currency traders and which one has the highest liquidity and volatility.
You can make more money with the more liquid and volatile currency pairs compared to those that are usually very slow.
In spite of all the reasons that such questions can have, there is something very clear about those who ask these questions:
They are new to trading and currency trading and they just want to start learning to make money through it.
The reason is that knowing the top traded currency pairs or the most traded currencies doesn’t make any difference for the professional currency traders and investors.
They don’t care about these things at all.
The only thing they care about, is the trading opportunities or trade setups.
Instead of looking for the top traded currency pairs, they are always after finding the best forming trade setups?
Because they know that it is a strong trade setup that can make money for them, not sticking to a bunch of currency pairs that are known as the most traded ones.
Professional stock traders are like that too.
The novice stock traders fall in love with one special stock and try to spend all their time to make money through it as an intraday trader.
But professional stock traders monitor all stocks and wait for the strongest trade setups and opportunities on all of them
They do this to enter and hold their positions for a reasonable time span, to make reasonable amount of profit.
Below, I am telling you about the top traded currency pair(s) and most traded currencies, just to give an answer to those who ask these kinds of questions.
But then I will tell you about the correct strategy and mindset that makes money while it has nothing to do with any special currency and whether they are the most traded or not.
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What Are the Top Traded Currency Pairs and Most Traded Currencies?
EUR/USD is the top and the most traded currency pair among the retail currency traders.
It is volatile and it has the lowest possible spread.
It is the most favorite currency pair for the intraday traders and scalpers.
So that was my short answer to that question.
Now let’s talk about the proper way of trading that has nothing to do with any special currency pair or any most traded currency.
First of all, I am strongly against intraday trading for several important reasons.
The most important reason is that it doesn’t make any profit and it is wasting of time, money and energy.
I have never seen even one consistently intraday currency or stock trader.
Sometimes they makes profit for a limited time, but then they lose everything they have made.
Besides, even if it makes money, I can’t recommend it.
You will have to sit at the computer the whole day watching the charts, and this is a terrible job to do in long term.
There are a lot of other ways to make money that are a lot easier.
Intraday trading affects your health very badly.
So, if you want to become an intraday trader and you are looking for the top traded currency pairs to trade, you have a wrong mentality that has to be changed now, otherwise you will have to change it after a long while of trial and error and wasting of time and money.
The right way of trading the currencies is through following them on the longer time frames (daily, weekly and monthly), and waiting for the strongest trade setups.
Doing so, you don’t have to be worried about the top traded currency pairs and the most traded currencies, because you can follow several currency pairs’ daily, weekly and monthly time frames, locate the forming strong trade setups, and then enter the market when the trade setup is fully formed.
It doesn’t take you more than 30 minutes per day to do that, no matter what trading strategy you follow.
Trading the Unknown Currencies
There are so many currencies that are not popular and probably most of you don’t care about them, and you don’t even think that you can make money through them.
But there are so many professional currency traders and investors who make a lot of money through these unknown currencies that can’t be found on the trading platforms of the retail Forex brokers.
Let me give you an example.
When the 33 days war was started between Lebanon and Israel in 2006, nobody knew how long it would take to finish.
But some people were waiting for it to finish to take an immediate action.
When two countries fight each other, the values of their currencies go down.
War affects the value of the weaker country’s currency more than the stronger one.
There are several reasons for this that I don’t care about them in this article.
Whatever the reasons are, lowering the currencies’ values is a good chance for the investors to make some money.
Once the war is over, you can buy the currency of the country that its value has been affected by war.
In case both of the currencies are affected, you can buy both depend on your budget and situation.
One of my friends who is a good banker, bought millions of Lebanese Pound or LBP against USD, right when the 33 days war was over, because the LBP value was affected by the war.
He hold the LBP and sold it when its value reached close to the same level it was before the war was started.
And guess what… He made several hundreds of dollars of profit.
Is LBP a top traded currency?
You don’t even know that it existed.
But there are so many professional bankers who make money with these kinds of currencies, because they know how to be at the right place right time.
That is not all. There is one more thing that they have.
They have enough money to invest.
You may know the right time to buy and hold a currency, but you can’t do it when you don’t have the money to do it.
Do you agree?
That is why I always repeat that to make money through currency trading as a professional currency trader and investor, first you have to have money and a good and strong source of income.
No matter what trading strategies you follow and how skilled you are in analyzing the markets; when you have no money to invest, you can’t make any money: Trading Strategies Don’t Work If You Don’t Choose the Right Living Strategy
So, the first thing you have to do while you are learning to make money through trading currencies or stocks, is creating a good and strong source of income that makes a lot of money consistently.
If not, you won’t be able to make a reasonable amount of profit through trading, even if you are the best in analyzing the markets and fundamentals and locating the best trading and investment opportunities.
It means the rich become richer, because they have the money to make more money.
So, first you have to become rich.
Then you can get richer.
To do that, you have to create a good and strong source of income.
If so, you will be able to use a portion of your money to make more through investing on the currency, stock, real estate and… markets.
You can not only make money through the top traded currency pairs like EUR/USD and most traded currencies like USD, EUR and GBP.
But you will also make money through the unknown currencies like LBP and even AFN or Afghan Afghani 🙂