Hi everyone,
This is my first post here so I would like to start by saying that I think the community you have built here is awesome! The school is amazing and has taught me so much more than I thought I knew
I am wondering what to consider when deciding which pair to trade. I used to simply take a look at the charts and see which one is trending and try to surf the waves but then I’ve learned (thanks to the school here) about how the news and various fundamentals can affect the chart info.
I am currently using a practice account so my losses do not hurt but I would like to build a strategy that allows me to profit almost every the time before I start trading with real money.
This is not necessarily a majority view, but you don’t have to limit yourself to just one pair. I trade a number of pairs, I’m a TA trader and I am just looking for technical setups. I trade majors, minors and a number of cross pairs, I feel that it enables me to limit myself for the purer setups.
Anyway, we’re all different, all I want to say is don’t assume that the only successful approach is that of trading just one pair.
Hello and welcome to babypips!
I would start trading a pair or two, not more… when you will be a little more experienced and you will be able to recognize the patterns at first sight you can switch to more pairs.
By the way, try to find your way of trading, I mean you can test different indicators and different strategies… only when you have tried all these indicators you can choose the one that best suits you.
I used EMAs, MACD and simple patterns such as trend lines, supports and resistances… I can’t say it is wrong, but I couldn’t make profits that way, now I use Stochastic, simple patterns, volumes, fundamentals and I’m trying to introduce price action and I can say I’m a profitable trader now… I’ve found my way
Good luck!
this is really a very easy question. just choose the most familiar currency pairs to trade with.
Spend your time on them and only through your efforts you can make the correct judgement.
Hey guys thanks for all the advice. Iv started off watching and trading the EURUSD pair just to give me an idea of how the market reacts. However, there are times when the market ranges and there isn’t much volatility. Its at these times that i get really tempted to jump into other pairs for some more action lol
Iv started looking at the AUDUSD as the chart is looking good and it seems to be trending
Is it a bad idea to choose to trade a pair based on the charts alone?
I like Simon’s comment. Zaine, if you could pick one favorite pattern what would it be?
Take that pattern and now pull up multiple pairs.
Everyday scan the pairs and find the most perfect setup of the pattern you are targeting. Simon used the word “Pure” which is an excellent description.
By limiting yourself to one pair, you will end up taking more poor quality trades, unless you limit your trading and only trade when the setup looks perfect and exact.
Well yes and no? If your new to trading, I would suggest you look to the majors… particularly EU. Focusing on one pair across multiple time frames can be demanding in itself. Trying to track multiple pairs signifacantly adds to the load. Then factor in their individual characteristics and its best left to a seasoned trader. This game is hard enough when your right. Best to start with one or two majors and get to know them intimately… then branch out. Just my two cents.
EUR/USD and USD/JPY are the pairs that I started to trade initially . Always concentrate on few pairs rather than to jump to all. Once you master one pair go to the next. Slow & Steady wins the race.
Jim, this is the exact approach I have been taking but nt times where there isnt much volatility i find myself being impatient lol.
I guess patience is a lesson i will have to learn if I am to trade and minimise my losses.
how many pairs do you monitor? you might need to add a few more pairs to scan.
you really got to have a criteria for the trade setups you want to take. else, you will really be prone to (more) mistakes borne out of impatience/lack of discipline.
Hey frinGFX, at the moment i am keeping my eyes on EURUSD, GBPUSD and AUDUSD. I have learned the hard way that discipline and patience is extremely important when trading. Now, as advised by Jim, I am tryin to look out for that perfect moment when all the indicators tell me the same thing before i place a bid.
FringeFX those are very encouraging words, thank you. I am using stochastics, macd and RSI as my indicators but am also using fib retracement and trend lines. Also my knowledge on understanding candlestick patterns have come in handy too. I have however recently learned the importance of risk management.
My problem recently has been that even though all my indicators are indicating for me to buy/sell when i do, the fundamentals seem to be throwing me off. Im finding it difficult to understand some of the jargon and even when i do, i cant seem to figure how the info will effect the prices.
At the moment my strategy for this is to monitor all forex news and NOT trade at the times they come out but rather absorb the news then watch how it moves the price. I hope this will help me figure out the effects of forex news.
Any advice on this??
Im sorry if these are novice questions. Have gone through the babypips school but some things you just cant learn until you are in the field
