I hope you’re all doing well. It’s been about 20 days since I started learning about Forex, and I’ve been using a demo account to practice my skills. I’ve learned a lot from resources like YouTube and the School of Pipsology. I also created a live account last week to observe the market and get to know MT4.
Now, I have a really important question that’s been on my mind. Should I focus on one or a few favorite currency pairs and spend most of my time analyzing them, or should I watch the entire market? Is it even possible to do so effectively? I would appreciate any advice or insights from experienced traders.
In the end, it’s up to you to decide whether to concentrate on a few currency pairs or keep an eye on the entire market. Just think about your trading style, how much risk you’re willing to take, and how much time you have. The key is to find the right balance that suits you and helps you make smart trading choices.
The focus should be on one currency pair, you can become an expert in analyzing and trading that particular pair. This can help you to identify patterns and trends specific to that pair, and make more informed trading decisions.
When it comes to trading with only one currency pair, it’s important to remember to avoid high impact news periods and only trade at least 1-2 hours after the news release. This can help minimize the risk of sudden volatility and unexpected market movements that can negatively impact your trades.
Additionally, it’s important to fix on one period of the day to trade with, preferably during the most volatile period pertaining to your chosen currency pair. This can help increase your chances of capturing profitable trades during times of higher market activity.
To further improve your trading strategy, it would be helpful to gather statistics on the high and low range of the currency pair during the specific time window you intend to trade in. This can help you better understand the typical price movements during your chosen trading period and inform your decision-making when it comes to setting stop-loss and take-profit levels.
By focusing on one currency pair and a specific trading period, avoiding high impact news periods, and collecting statistical data, traders can develop a more informed and effective trading strategy that maximizes their potential for success.
I prefer indices. Different indices have different characteristics.
FTSE100 is pretty stable as an income heavy index, trade the pullbacks on monthly or weekly chart.
DAX is more volatile and better for growth. Good for short term trades or conservative longer term ones. Can’t really go for big leverage because it’s too volatile.
I’ve traded less forex as I’ve learnt the markets, because I find it’s easier to use traditional tools on stocks. I may take the occasional forex trade, but typically one that has a strong currency with higher interest rate over a weak one so you can hold it for a long time as a carry and growth trade. I currently have a USDCHF and am hoping it does its usual habit of going from 0.9 to 1 and make me a nice profit to go with the swap.
Thank you for sharing your valuable insights with me. I appreciate all of your points and will definitely keep them in mind. If it’s not too much to ask, could you kindly recommend one or two currency pairs that I can monitor closely? I understand that it may not be entirely professional to ask for such advice, but I believe your expertise can be really helpful.
traders choose their pair according to their trading understanding , personally i always like to trade with major pair to avoid unfortunate risk and losses but in demo i trade exotic pairs to see the performance how it works.
Hi,I suggest to watch few pairs and see which is better suits your strategy… etc, I used to focus on EURUSD at one point, then I added GBPUSD and then few other pairs and now I mostly trade XAUUSD
As already said, it depends on your trading style. Scalpers & day traders limit their pairs because they’re in & out in just a few mins/hours, so scrolling though dozens of pairs can be counterproductive.
Do you know what you’re looking for?
Whether you’re trading 1 pair or 28 pairs, you should know what setups you’re looking for. I don’t think there’s anything wrong with multiple pairs, as long as you know what you’re looking for. If you find multiple setups then pick the best one, otherwise you’ll find yourself stuck in a bunch of trades that correlate with each other.
