this is totally newbie, and i found the learning center from baby pip is absolutely amazing . whole curriculum is presented in a interesting way . i adore all the images they use .
i am in pre-school. while i am reading " know when to buy or sell " below question came to my mind .
Buy " base currency "when the country would get weaken , but how to define which currency pair?
E,g if i think EURO would get weaken, i would like to Sell “Euro”,but there lots of pairs with EURO. Which pair should i sell ? EUR/CHF ? EUR/GBP ? EUR/JPY ? EUR/USD ? i just choose the other country that i think it will go strong ?
it might be naive to ask… :19: but hope anyone can light me up .
Hi Emma, this really comes down to the strategy you implement. Different traders will sell and buy different currencies according to the signals they receive from their trading strategy (unless you follow someone else). No easy answer here I am afraid.
I wouldn’t worry too much about it yet, you’ll change your mind so many times as you work through school.
When I first started I used eurusd on a demo account, mainly to get used to the trading platform and try different indicator. It seemed like I could do no wrong, I won nearly every trade, this was so easy. What I didnt realise was that a trained monkey could have picked winners in that pair at that time and, after I went live, sentiment changed.
Keep studying, look at the charts in demo to see if you can spot trends, support, resistance, etc, and watch what happens around news events.
Good luck
First you must know what you are looking on the charts (trading strategy). What are your rules to analyze the charts? what are you entry rules? what are you exit rules? etc…
Is there any “safe” currency pairs to trade with ? which will be easier for a beginner as i am to use and get the point of trading? i think it would be better for me to trade with no so much volatile pairs to begin with.
Any pair offered is tradeable, but if you are fundamental trader like me you would find useful to picking only those pairs that particular news have impact on. For example US news and economical releases has most impact on USD so trading comdolls is best idea in that case.
Stick with the major pairs, eur/usd is probably the ‘safest’. You will have lower spreads with majors and there will be greater loquidity in the market so fewer requotes.
Its all in Pipschool, dive in and study
If you’re trading with news so you should consider condition of another country too. Example if you knew EURO was weaker so you should consider the effect of news to another country currency and it is not always the condition of EURO weaker to another country’s currency when the news said EUR was weaker. My suggestion is traders need to choose the pair first not looking the news and then choose the pair. How do you choose the pair? You should try to trade with the pairs in demo account to determine the best pair to trade for you.