How do you decide which currencies to trade?

Have a read of this thread bro,

http://forums.babypips.com/forextown/84241-usd-try-incredible-pair.html

gives you a good blend of arguments for trading/ not trading the TRY.

Personally (like mainy) I trade just the one pair (EURUSD). I have tried to branch out but have found I become unfocused. My personal belief is that if we wish to succeed then one must specialize.

I have always stuck to a small number of currencies at any given time - GBP/USD, USD/JPY, USD/CAD and the like. As a newbie I was trading EUR/USD but eventually I realized it was too range-bound for my taste and moved away from it.

To be honest, and contrary to me only trading a single currency pair, each pair does have it’s own characteristics (just like stocks do too depending on the company). So in some instances it’s not at all a bad decision to get to know a single currency pair in great detail.

For example, because of my years spent focusing on GBP/USD, I know that when certain parameters are identified within price I have a higher probability of being on the right side of the trade (of course I can also be wrong, the key word being probability). Some traders may call this standard TA which works on all currency pairs, however it’s knowing the key price levels which are respected time and time again which is the unique factor to knowing a currency pair really well. To me, it’s this detail that can provide an edge when you need it most.

Sometime I am choose pair ;ike as gbpusd that included as major pair, but sometime also trade on eurusd as major pair, and usually I am opened multiple instrument trading like as gold and silver and some pair, but in trading will choose one instument only to traded because more easy to manage the risk

Lexy, would you like to take the p|i|s|s or shall I???

Another pointless contribution from the good people at Bearish, Son and CO!

I know I said I had no words for you, But, THAT WAS FREAKIN HALLLLLLLLLLARIOUS!!

Dude, he talks like confucius,

He probably has 5 ways to add 2 + 2,

Haha, every time I have no idea what he/she/it is talking about.

Nobody does.

Usually I also prefer majors like EUR/USD and GBP/USD (indeed so far they are the best) but lately I have been experimenting with USD/MXN just out of curiosity and so far it’s quite interesting but I feel that I need more time to explore this pair. I support the theory that it’s not quite good to operate with too many pairs as we can easily lose our focus and a disaster can happen haha. But if I see a potential in some pair I can’t help myself but initiate the experiments :smiley:

I usually concentrate on one currency for a while, until the most of my orders are profitable. When I was new trader I used to watch much more currencies but then I realized that I am profitable just on some of them because I learn how they react under specific circumstances. Of course, you will never know how they will act when a significant event will come out. So, now I prefer to focus on just one or two instruments at a time.

If you are confused on which currency to trade in when entering the market, follow the steps that you can take to choose the best currency pairs to trade in Forex.

  1. Open charts for six or seven currencies, check which currency is trading under pressure, which currency is consolidating, which currency is moving up, which currency behaves against the most currencies.
  2. Check all the latest market news to check for the expectations and forecast of the currency’s movement.
  3. Evaluate the weak currencies for buying opportunity as they can offer good amount of profits in long run. While strong currencies can allow selling opportunity.
  4. Technical Analysis can help to bring clear picture about the currency momentum. This will also help you narrow your choices for best currency pairs and allows you to trade in best currency pair.

That is easy to trade in major pairs as starter. newbies can try gold or silver on demo ,not do directly on live account because they involve high risk. EUR/USD is basic pair most of the traders like to trade in it.

Well, my personal trading strategy provides only good accuracy on EUR/USD and Gold! As a result, right now I have only these two trading pairs in my live trading chart! In addition, I also select my entry and exit points in order to this technical tool based trading strategy! Yes, I am not making such a huge money, but I am happy on my low consistent outcome!

[I]“As a newbie I was trading EUR/USD but eventually I realized it was too range-bound for my taste”

“each pair does have it’s own characteristics… in some instances it’s not at all a bad decision to get to know a single currency pair in great detail”[/I]

Does this mean that some pairs are better for intraday and other pairs are better for breakout/swing trading?

Seems to me that a pair that trades in a predictable range would be ripe for day trading, allowing you to snag five pips here, five pips there all day long. Where as a pair with big swings would be awesome if you are at all skilled at calling tops & bottoms.

But don’t listen to me, I’m brand new and know next to nothing.

Generally, yes, some pairs seem better to use for intraday trading, others are better for longer term trading. However, it’s all very relative. Even pairs that move smoothly in a single direction for a long time have their pretty significant periods of range-bound development.

1 Like

Hi,

To trade currency pair, we have to concentrate on different sessions. There is more liquidity can be seen in Newyork and London session overlap. Huge transactions occur in this session. So there is a movement we can expect in Forex market. We can concentrate on EUR/USD, GBP/USD, EURGBP, USD/CAD pairs. After the overlap, there is side-ways movement in the market.

In Tokyo session, the market movement is moderate. The movement will be high in JPY pairs after news releases. Then you can trade with JPY pairs on that time. We can expect some more liquidity in Tokyo and London overlap session. Europe market begins at that time. Largest number of transactions occurs in London session.

Please don’t try to trade with a best entry point, but make a suitable trading strategy for you! Like, my trading strategy offers me 30-40 pips trading opportunity in a long swing trend (like 200-250 pips)! In addition, of course I am happy on my personal trading system! Actually, I know my lacking and strength as well, so I don’t expect more!

It’s most important that there be a trend on the pair, because there’s no use of trading on a pair which is in the flat, or which is out of order, in other words is chaoticly moving up and down.

Some people, especially scalpers, do trade range and they trade it quite successfully. Trend is not always necessary to open a successful position.

I prefer to trade major pairs, that way I can get more profit, but the risks are also bigger.