The Hong Kong dollar is a unique currency for many reasons. That is why traders should be doubly careful when they decide to participate in the popular Forex market USD / HKD. The Hong Kong dollar is highly traded, but also fully regulated, unlike most other world currencies. Many new traders avoid the USD / HKD pair and prefer to stick to more familiar currencies that behave in more traditional ways.
After several months of Forex experience, traders often gravitate to the USD / HKD pair and investigate it further. Like many other currency pairs, this helps you be diligent and leave emotions out of the equation. For those who finally decide to trade with this intriguing pair, it is necessary to follow some of the tried and tested Forex guidelines even more carefully.
Use simple strategies
New traders often feel the need to enter and use dozens of complex strategies in the hope that complexity leads to profit. On the contrary, many of the most successful traders use simple strategies when trading Forex, stocks, ETFs or bonds. Especially for traders who have less than a year of experience, it’s smartest to work with just one or two strategies you know, not six you barely understand. As you see here, the professional platform is important because its automated features can free traders from having to worry about detailed strategies. For USD / HKD enthusiasts, a simple trading method is needed.
Research the market and specialize
Perhaps more than any other commonly traded currency, HKD is calling for a lot of research before making deals. It is even more useful for traders to specialize in the USD / HKD pair. This is one way to develop a decent experience and depth in a couple that has as unique characteristics as this one.
Never break your trading rules
Adhering to your personal trading rules is always a good idea, but when it comes to the USD / HKD pair, it’s almost a necessity. So many traders are frustrated after putting time and effort into a deal that ultimately shows no profit. This happens to the best of them, but it is a difficult pill to swallow sometimes. One common reason for losing trades is a lack of discipline. A trader who has a stop-loss rule can easily be caught thinking that “things will get better soon,” and will end up losing more than a deal than personal rules would allow. Letting the emotions get the best out of you is not the way to success in trading the USD / HKD pair.
Understand the uniqueness of the Hong Kong economy
Hong Kong’s economy is unique in the developed world because its political structure is still changing. For a hundred years, Hong Kong has been ruled by the United Kingdom and enjoys a free market environment like no other place on earth. After political control returned to China, the country’s communist regime almost allowed Hong Kong in, but institutional traders worried about the currency’s future. For this reason, and many others, traders must take the extra time to research each USD / HKD trade before entering a position.