Is it best for a newbie to concentrate on 1 pair to trade?
FWIW, I use spread betting rather than actual forex.
I kinda like looking at 4 different currencies and then picking whichever one has a trend to trade on with a maximum of 2 but maybe it would be better to just pick 1?
Was thinking EUR/USD or GBP/USD.
I’m better placed to pick up fundamental stuff on the GBP/USD as I live in England but EUR/USD seems to have higher movement…
Is GBP/EUR worth a look or are the above 2 better?
Hello San Miguel, that’s some great beer you brew BTW! Well, what you said about living in a certain country is right, and important to. You’re lucky you live in a country that provides a Major Currency.
I remember when I was a newbie, my broker (ACM) explained to me the following.
Concentarate on 2 to 3 currency [U]pairs[/U] max. The reason is that there is so much information available to the public regarding what is driving a currency, that to concentrate on any more than that would basically screw up your mind! Remember that it is currency [I]pairs[/I]. You need to know what is affecting both of them, e.g.GBP/USD, Sterling may be bouyant for some reason but then again so may the greenback because gold has lost value which means that this trade will be flat, remember many are correlated with each other, Gold to Dollar, Oil to NOK for eg.
Good luck!
I believe that it depends on your trading strategy. if you use fundamental’s a lot then focus primarily on a few pairs.
if you want to explore lets say 5 currencies EUR USD JPY CHF and GBP then i would suggest that you use all the same combination. for example only trade USD pairs eg USD/JPY EUR/USD USD/CHF ect ect and stray away from pairs like GBP/CHF because you are comparing all these currencies vs the US dollar.
I am 90% charts and 10% fundamental basicly i mainly folow what my charts are telling me and watch for major events in the news that would effect currency prices eg interest rate changes.
hope that helps
good luck with your trading =)
If you’re trading the daily/4hr charts, even 1hr, you will sometimes miss the entry points for a trade on just 1 pair because you are asleep.
I could set orders but I don’t like doing this without seeing all the indicators and candles at the time.
So, maybe it’s better to concentrate on a few pairs and pick whichever one to concentrate on that starts to have an entry point in line with it’s trend???
So far I have:
EURGBP
GBPJPY
GBPUSD
GBPJPY I find a bit too volatile to trade anything less than the 1hr/4hr charts.
Any other suggested ones here?
I totally agree on focusing on no more than 2 pairs. Only of late has E/U become volatile, normally the G/U has way more activity.
Cheers
Why would you trade the E/U and the U/C?? Pick one, they are traditionally inversely correlated… 1 goes up, the other goes down…
If your going to trade multiple pairs, you need to know how correlated they are and adjust your risk accordingly.
Cheers
It would seem logical to me that a newbie should trade only one pair at a time (one trade at a time) and totally concentrate on winning this trade by [U]planning it carefully with excellent money management added.[/U]
By doing this you are setting a [U]good foundation[/U] and [U]building your confidence.[/U]
This is far better than splattering your efforts all over the place with minimal planning.
Good success will come from well planned trades.
[U]Quality work[/U] is the name of the game.
If you do poor trades all the time, it will become a habit for you to continue doing so.
If you do [U]quality trades[/U] all the time, it will become a [U]habit[/U] for you to continue doing so.
[B]Only with time and experience should you consider stretching out to consider multiple trades simultaneously.[/B]
True true, 1 trade at a time but I don’t see a problem in looking at 5 pairs and waiting for 1 to get into the “zone” where you want to make a trade?
Of course, you then have to spot 5 different patterns…
I had a similar issue and I think start with one pair, analyze it in all t.frames, move on to new pair. Check out a ton of free info fo Forex Trading | Forex Coaching | Forex Tips | Forex System