If you are starting off as a beginner then go for the major pairs like EUR/USD , GBP/USD, AUD/USD, USD/JPY, NZD/USD etc. These currencies are widely and commonly traded in the forex market and they offer you decent liquidity as well.
As a beginner is to choose from the EUR/GBP, USD/CAD, AUD/USD, NZD/USD and USD/CHF
Hey @JAnderson! I completely agree with you, as a beginner one should always start with majors.
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Beginners usually trade in these pairs they like EUR/USd specially it is wisely traded pair. No doubt good liquidity, volume of trade and chance to get profit are present here, They should not waste their time in pairs that are less moving or having high spread using much capital during trading.
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Yes thatâs right these things should be kept in mind too. High spreads are not good. Besides this beginner traders should also have enough knowledge of the pair they want to trade and keep up to date about its patterns and movements.
. I agree. Having a firm understanding of the pair you choose to trade in can enhance your confidence to trade even if it is not a major. But still my advice to beginners would be to stick to major currency pairs. If youâre a seasoned trader then you can expand your trading pairs more freely based on how familiar you are with the performance and behavior of that pair.
Every currency is best who had a huge liquidity in the market. You must have full grip on that currency and also you must have to do research on that currency by reading the news about that countries. You can also analyse that where the market is now going.
Start with the major pairs, once gets comfortable with them then you can go with other pairs as well. Though it is my personal opinion that initially it is better to go with major pairs rather than exotic.
)Yeah. For newbies it is generally recommended that they should go in for pairs that have a lot of liquidity, Basically any pair with USD. But equally important is your knowledge about the pair.
What currency that having most liquid currency I think major currency, like as USD, euro, GBP, JPY, CAD, AUD, but for me pair that more preferable to trade is choosing gbpjpy, and sometime eurjpy, this average movement sometimes exceed pair gbbusd and also eurusd, but indeed spread for gbpjpy has larger spread than major pair generally
Yes, the trading spread is relatively high here rather than others major pairs! On the other hand, this is very much volatile trading instrument as like gold.
I see this question posted often on the various forums, and advise that the best symbol to trade is the one giving the strongest signal at the time. Spread is a consideration for scalpers and those trading shorter timeframes, but once you get up to the H4 and above spread is far less important. If you want to screen for the best symbol to trade at any given time, use a currency strength indicator. Trade the strongest currency against the weakest currency, regardless of the symbol this represents.
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Please donât mind; this is the worst trading system I have ever seen.
What donât you understand?
I guess, you are talking here about a custom tool, isnât? (This tool shows the relation between the strong & weak currencies).
I am talking about comparing each currency with a basket of currencies to select the currency pair/s with the greatest opportunity. If you look at the eight major currencies, AUD, EUR, CHF, CAD, GBP, JPY, NZD, and USD, there is a total of 28 currency pair combinations. Which of these represent the best potential? If, for example, your analysis determines that the GBP is strong and/or strengthening against the others, and the CAD is weak and/or weakening against the others, then a logical choice would be to go long the GBPCAD when a buy signal comes along.
Another advantage of this method is when multiple signals occur together. Suppose your strategy gives off buy signals in the GBPCAD, GBPUSD, and GBPAUD. You now have to decide which pair offers the best potential or take the risk of trading all three. If your currency strength analysis shows that the USD is neutral and the AUD is strengthening, then again your best choice is the GBPCAD pair.
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Thanks you very much for your detail answer! It really makes sense.
I suggest beginner should try USDCHF first, it tends to have lower volatility than other forex pairs (except when Swiss released the peg). Then try EURUSD. After having steady profitable trades, try to GBPUSD or GBPJPY. Finally you can try GOLD if you want. Just my 2 cents
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It all depends on your time zone and trading style.
I have good experience in trading and according to me, these are the best currencies to trade for:
USD/EUR
USD/GBP
USD/JPY