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So what are the best currencies to trade? Let's take a look at some of the obvious ones you should include in your trading and some others which will allow you to catch the big profits from the big moves.

So what are the best currencies to trade? Let's take a look at some of the obvious ones you should include in your trading and some others which will allow you to catch the big profits from the big moves...

There is no such best currency to trade, as any currency will offer you opportunities but its best to stick with the majors, as you have good liquidity and low transaction costs.

The British Pound, Euro and Japanese Yen against the dollar, are the 3 any trader should follow but I also like the commodity currencies and follow the Australian and Canadian Dollar, which are great for long term trend following.

You can also trade currency crosses which can also offer some nice opportunities.

A currency-cross is any currency pair in which the US Dollar is neither the base nor counter currency. For example, GBPJPY, EURJPY, EURCAD, and AUDCAD are all considered currency crosses and there are of course many more you can choose from.

If your broker doesn't offer you the cross you want on the trading platform you simply can create a synthetic pair. Let's say you want to go long the British Pound against the Swiss Franc, or buy GBPCHF. You would have to buy GBPUSD and buy USDCHF at the same time with the same amount being allocated to each trade.

Be aware this trading can cost you more in transaction costs but it opens up huge opportunities for you, as you have so many different pairs of currencies to choose from.

One trade I do each year is the following one and it often turns out to be one of the best performers.

It's a fact that most currencies tend to have their high or low for the year in the month January. So at the start of each year, I look for the weakest currency and strongest currency based upon interest rates, economic strength, sentiment etc and simply take a position and leave it. In many instances the trade is in a currency cross.

Stick with the majors most of the time but keep your eye on the crosses, for some great long term trading opportunities.

If a currency trends and your system is soundly based, then any currency can give you profit opportunities.

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