Other than the major currencies, you can also trade what are known as exotic currencies. These would include: Indian Rupees, Mexican Pesos, Nigerian Naira, Israeli Sheckels. If you wish to give it a go, stick to position trading on weekly or monthly charts, and don't bite off more than you can chew. There is a good chance you will make a fortune on these trades, but then there is also a good chance you will go broke.
The Turkish Lira was one of those exotics that was real enticing to attempt to trade. But that thing was wicked!!! It could take off 300 pips in a minute in one direction and then go in 800 pips in the other direction. It was insane. I would try it but it has to be micro lots. The very minimum with stops.
Are there chances of making good money with those currencies? I doubt it. I think that crypto currencies could bring a better return, but the risk is highe
Well if I was playing it like I would with a forex chart I would be on going short (sell), and only when it makes a new low and breaking previous support lines. Lower lows. Does anyone else see something I don't?
Hello Kempee! based on your posts, you really have a lot of knowledge in both the stock market and forex trading. Any good advice for the Philippine Market? or our PHP peso as another exotic currency to trade in??? Thanks in advance. PS: I hope we could soon have a commodity exchange... there was a rumor going around just last year.. but it remains a rumor up to now.
All I know is that some currencies these days worth nothing, for example I have a friend working in Angola and the Kwanzas now can't even be traded into any other currency...
It's kind of risky I think. Exotic currencies can be very volatile due to [political] instability in some parts of the world. The constant fluctuations in value [of the exotic currency] would see you lose a lot of money very fast. Personally I wouldn't try it.
High volatility is always interesting. I personally shy away from most high volatility investments as I'm more of a long term investor but I can definitely see why you would want to day trade with these currencies. But as always, high volatility also means high risk, so be careful: use a stop-loss and don't get too greedy with the profits.