Im completely new to trading and am currently working my way through the free school to build up my knowledge.
However I’m struggling to chose 1/2 currency pairs to focus on in terms of trading and analysis. I feel that by choosing just 1/2pairs to start with will help me get a better understanding of how everything works before getting too stuck in.
I would just like some opinions on which pairs would be a good choice based on:
Where I live being Oxford (England)
Information available for analysis
Simple analysis techniques
And lack of volatility
All opinions will be much appreciated
Also On choosing a broker to work with after reading about it I’ve decided that id like a no dealing desk broker (STP + ECN) but am not sure if this is the right decision? Also would like some suggestions of actual brokers?
At the moment I am look for short term profits of trading.
For what it’s worth, I suggest EUR/USD as first choice and maybe GBP/USD as second choice. Both have low spreads/dealing-costs and are easily traded during hours that will probably suit you.
You probably shouldn’t be. You should looking to learn first, [I][U]followed[/U][/I] by many hundreds of hours’ practice on a demo account, before even thinking of trading with real money. I’d [B]strongly[/B] advise you not to think about funded account trading until you’ve carefully collated the results of a [U]minimum[/U] of 300 [I]consecutive[/I] trades on a demo account without making an overall net loss, but you’ll be (at least) many months away even from doing that, at the moment, in my opinion.
I first started when I was a bit younger than you are now (I saw your other post), and I now trade full-time for a living - and if it helps you, this was how I learnt.
Discipline & psychology plays an important role in starting trading for a trader to become successful in financial markets. The ability includes fundamental & determining the direction of trend to understand the inner workings of a company. The directions of trend are a few traits required, but no one of these is quite important as ability for containing emotions & maintaining discipline.
The psychological trading aspect is quite important and the reason is fairly simple. A trader is usually rushing in and out of the positions on short term & is forced for making early decisions. To achieve this, they require a certain presence of mind. They also by extension, require discipline, so they attach with previously established plans & know when to book profits & losses. Emotions simply can’t get in a way.
Knowing fears means pulsating red and bad news which helps to find certainty about the positions. It is uncommon in the market to get scared. When it happens, the overreaction & compelling to accommodate the holding & go to cash to refrain from taking any risks.
I agree with lexys that EUR/USD and GBP/USD are the majors currency pair for start the trading. For your information, on those two are based the other currencies, as well as, on the U.S. dollar.
I agree that EURUSD and GBPUSD are quite appropriate to start with. Basically most of the majors are great for trading as the spreads are low (if you use an STP/ECN) broker, especially the GBP, EUR and CHF are the most active during the London session (which I believe will suit you best).
I think you made the right decision to choose a broker with no dealing desk as we all know that DD brokers trade against their clients, have hidden costs and prefer their clients to lose. Have in mind that perhaps it’s not such a good idea to look for a short term trading profits as if you’re striving for this, then you could end up blowing your account quite fast and lose even more.
As all say, I would also recommend trading for major pairs like EUR/USD and GBP/USD. Spreads are very low especially EUR/USD. Spread on EUR/USD even fall to as low as 0.0 pips (with ECN account type). Regarding brokers non dealing desks are the best ones to trade with.
Earning short term profits can be risky, being a newbie you should first build required confidence, gain knowledge and practice as much as you can and then you can think of going live and earning profits.
