The problems if you are trading them retail are too big for any trader to overcome. You cant really do short term trading due to big spreads and possible huge slippages. Trading medium and long term is not possible either due to huge swap costs That is for the retail market. Very difficult.
I find exotic pairs more predictable as less traders participate into this trading, its also easier to manipulate them what creates additional opportunity to stay on the winning side. What do you think?
I don't day trade exotics because the spread plus my buffer for the stop easily equals 0.25 ATR. I happily swing trade them and haven't had any bad experiences thus far.
I think it's another one of those "It must be true: I read it at EliteTrader" moments. ("It's also easier for them to be manipulated, which creates additional opportunities for big players to screw you and ensure that you stay on the losing side" would surely be a better description.)
Does anyone here trade exotics? If you do, why did you choose these pairs? Have you ever regretted it? Or, are you, on the contrary, pleased with your choice?
Haha yes if you are bad at guessing their steps or don't have means to learn information that may give you an edge. Rigging is a man action what will always be predictable than efficient market. Simply because human actions are predictable. Moreover you need to gather and learn less important information for trading. It is a kind of narrow range stock pick, where you learn the industry thoroughly, company itself, getting more tools for analysis and predictions.
I most of the time avoid these exotic/less popular pairs because they involves high risk so better stick with the major pairs like EURUSD as it is good and low spreads as compared to other currency pairs.
Those have always been my main reasons not to trade exotics - the wider spreads and the political instability (about which I know little about) that surrounds them.