In this video, you will learn about how to identify best currency pairs that can be profitable in forex trading. You need to use fundamental analysis to find out if a currency pair could rise or fall. One example, is the non-farm payroll report, Many leading firms use fundamental analysis in their research besides using technical analysis for analyzing a currency pair.
You should be listening to news announcements and check the economic calendar for data releases. It is better to wait until a data is released and then you can place your trade. Also, you must use a stop-loss, so that you can limit your loss in case the market goes against you.
News announcements and release of macroeconomic figures trigger huge volatility in the market. You need to understand when a currency pair will rise. For example, when a central bank cuts the interest rates, then it will cause the currency to depreciate. In this case, you can sell this currency to make a profit.
So, pay attention to headlines like US-China trade war. Because it has a high influence on currency pairs like the USDJJPY and AUD/USD.