What Trading Instrument Suits Your Trading Style

Most Forex traders have for one reason or the other not explored the opportunities that lies in trading other instruments apart from currencies, crude and metals.

The truth is opportunities abound in the market and these different instruments with different level of liquidity might better suit your trading system, but due to a lack of exploration/ abject restriction to the status quo have not been able to tap into these opportunities.

This scenario happened 2012/2013; As a trader myself, i have once restricted myself to trading only during the Tokyo session. I traded only the NIKKEI Index which opens from 1 a.m and closes by 7 a.m. I was able to understand the tight relationship between the NIKKEI Index and the S&P Index in the US. The US dollar and the Japanese YEN are somewhat inversely correlated but their indexes had this direct proportion to each other. This basically means, if the S&P rises today, the Nikkei does the exact same movement tomorrow. Without any special analysis, i was actually making consistent profit trading the Nikkei. Though i had to deprive myself of sleep for several weeks during this time but the deprivation was actually worth the profit i was making trading this instrument. The margin requirement on this instrument was very low then but it has been adjusted significantly now. We will discuss further on this topic in the next article.