Hi, I hope someone can help me to choose or categorize pairs of currencies which are safe for newbies like me. And also pairs to avoid due to their volatility. Any recommendations ?
There is no “safe” pair for a new FX trader in my opinion. Each pair is volatile, though some more than others.
Typically the Euro/Usd tends to move anywhere from 50-100 pips per day, then there are days it will surprise you and make a big move. On the other hand the GPB/Yen might move 2-300 pips a day.
So i would recommend you just start your demo account and start to get a feel for the different currency pairs and when you actually start trading, limit it to 1 or 2 pairs.
Good Luck to you
I recommend AUD/USD and use bollingerband to track your daily buy and sell signals.
Stick with small spread pairs first.
Start with EUR/USD and stay away
from anything paired with GBP or JPY.
Thank you all for the reply, I am trying to specialize in one currency at the moment. Because I am really looking for a pair of currency that really swings in one direction when it decides to move. With a weekly goal of 100 pips to score a week is it possible?
USDJPY will give you a good “bang for the buck”.
My trade plan will be:
A) use only 4hrs chart, because the period seperaters are 1 week.
b) use Heiken Ashi candles
C) use the Awesome Oscilators
The above are coloured WHITE bullish and RED for bearish.
To confirm the strength of the trend I use the ADX.
Visually easy to spot. Trying to keep it simple.
Target profit 100 pips weekly, thats all I need.
What do you guys think about my approach? I just need to specialize in one currency. Please let me know.
I prefer to look at daily chart, then use 10 min chart to find my entry level.
I only use indicator that has proven itself in my back-testing.
Different currency pairs have different behaviours, some are wavely, some are more choppy, so not a single indicator can apply to all.
My target is 30 - 50 pips for every trades.
Volatility is what you want, that’s how you make your money. If pairs just traded sideways, there would be no point.
Personally I trade 6 pairs regularly, although I’ve traded as many as 20+ in one week.
EURUSD
USDJPY
USDCHF
USDCAD
AUDUSD
USDGPY
I trade these every week. Better to diversify a little bit (yes I know they are all against the USD but it’s still better than nothing.)
Look at EUR/GBP as well, stochastic is a good indicator for this pair.
If your going to trade multiple pairs be sure your aware of the correlation between them.
Thank you again to all, those are very useful advice. I consider myself as a very conservative trader. That is why I would like to be a specialist in only one pair of currency. And my goal is very specific that is a weekly goal of 100 pips, thats all. Planning my trade and executing the trade with pure discipline and patience. Taking only quality trade set ups not quantity. Even it means having to trade only once a week. Its ok for me to miss a move, the whole idea is capital preservation and winning the consistenly.
If you want to specialise in 1 currency pair, then choose AUD/USD.
It is the most predictable currency pair in my view. More than 50% of my trades come from AUD/USD, because it is easiest to make money.