I am brand new and currently learning all there is to the Forex market. I have read its best to learn one currency pair at a time so ive decided to learn the GBP/USDas im from the UK so it might be best suited to me with the news.
Is there any advice anyone can give me in terms of GBP/USD and any other great tips you can give me to start with ??
thanks
S
GBP pairs recently with all the news have been very very volatile so just watch out for that.
What time frame are you going to be trading?
What type of strategies are you thinking of working with?
Will you be jumping into the markets live and trading real money or is this demo?
Thank you for getting back to me…
I do realise that GBP/USD is more volatile and especially now at the moment, I did think it would be easier as im from the Uk but maybe not??
I am very new to trading, just learning it all so I was thinking the 30 min or 1 hour time frame would be be best to start with, if im successful or have a good strategy this could get lower with time.
As for strategies its still early in the process and im looking into these and what way I will go as there is so many different things you can use.
As for jumping straight in, not a chance, I want to really understand it all, work on the demo for a good while creating a good strategy, I appreciate its different with real but I need to have a better understanding…
Would appreciate any advice or tips from yourself or anybody.
Thanks
S
You can definitely trade GBP pairs they are just very volatile. Being from the UK I don’t personally see as being very beneficial or not. Many times good news can come out that seem like it would send a certain pair skyrocketing only to have the opposite occur.
Nothing wrong with trading the GBP though.
These are decent time frames. From my experience I have to recommend higher times frames such as 4HR 8HR and Daily but there are traders who successfully trade lower time frames no problem!
There are many options for strategies this is true. Try not to get locked into “analysis paralysis” with all the options. Every strategy will have it’s winners and losers and a 40% win rate for a beginner is fantastic and even profitable with 2 to 1 risk reward ratio. The babypips school while great does provide a lot of information that for me would have definitely been overwhelming if I had read it all when I started out.
That is great. You should most definitely test your strategy thoroughly in demo before going live.
If you are interested I have a topic here called “insights from a 14+ year trading veteran” you can check out. It is received well by some and not so well by others but I am sharing there the key things I had to learn to become a full time trader.
The volatility on GBP obviously is Brexit news driven at present, usually it’s numbers like rates that matter.
Being from UK can be used to your advantage - politics reigns so listen to what they are saying and watch how the market reacts.
Atm the PM is upbeat after his meetings with Merkel and Macron - see how that has helped the pound - especially the second meeting.
Watch for comments at the G7 in Biarritz - see does the upbeat mood survive one week - if it does then good chance of some more pound buying
GBP bullish with a 3-24 month outlook.
Good to offer reasoning for predictions - otherwise they are mere opinion.
I would have thought that GBPUSD may be suitable for a position trade. There are two big negatives for the GBPUSD - the threat of a hard or no deal Brexit and a Corbyn government. The first is I think a temporary problem, that maybe could push Cable towards parity. A Corbyn government is much more serious, and could hobble the pair for years. The ideal trade would be GBPUSD totally in the doldrums in late October, with a trader taking the view that a. Brexit is not going to be a big disaster and b. Corbyn won’t get in. You also have the issue about how to handle a general election. A Conservative absolute majority would be VERY bullish for GBPUSD, I think. So if you buy GBPUSD with maximum uncertainty, and the Tories win an election, you might want to hold on to your trade. 20%-50% upside in the trade, on a two year horizon, would then be quite possible. Longer ( term, if the Tories get a majority, and the British economy rides the storm (at least compared to Continental Europe), I can see the GBP have safe-haven status.
A video just came out on No Nonsense Forex about that pair…might help!
Have you completed all the babypips training? I learnt some great tips and has definitely helped me with my trading.
thanks for getting back to me once again
May i ask why the 4/8 hr time frames will be better? is this due to less movement and its easier to read the trends and candlestick patterns?
Im not to sure what you mean by risk ratio? is there a good way to work this out?
I have read through your “insights from a 14+ year trading veteran” and its been useful and will definitely be following this.
once again thanks very much for any tips or advice
Thank you, im still very new to all of this so its goo dto understand what the key factors are in price movement.
i am running through this training now as I get advice from this forum also, it has been helpful gaining a wider knowledge
You selected on of the best pairs to trade with for now so I wish you good luck, bascially we should assume that you already played with demo a bit , correct ? And now only looking for some advice or something like that ? Then start with live account;)
Are trying to trade only based on the fundamental? How it can be easier to you?
@Shaungliddon I’m from the UK to though I mostly trade US equities and currencies. I prefer this as you get longer to prepare as markets don’t really get going for these assets till 13:00.
Personally. I would stay away from the GBP/USD as that is what the pro’s are doing at many of the hedge funds and banks. Its hard to find a case study or historic incident that Brexit looks like!
The USD/JPY or EUR/USD are better pairs as you will be one stepped remove from the volatility. After all trading is all about managing risk.
They is one camp that says the pound is undervalued but this is a 4 year view.
P.S its great to see that your looking to get screen time in front of charts before jumping right in. Hopefully you can avoid a lot of the mistakes newbie traders make.
Are you open to book recommendations ?
if you are a new trader, don’t wait to trade the news, important news does not happen every day. instead learn price action, understand that price moves in waves, UNDERSTAND market structure and patterns, These patterns repeat themselves all the time. Stay away from using too many indicators, they mostly lag behind price. Take your time to learn as much as you can. Understand that you are trading against banks who want you to lose so that they can gain. MONEY MANAGEMENT is the most important aspect of trading… Learn it… GOOD LUCK P.S I am also in the UK but I don’t trade GBPUSD
Hi, thanks for the message, i am beginning to think the GBP/USD is just too volatile at the moment especially as I am new…
I am just beginning to learn all of the indicators, patterns etc of candlesticks… im not very good with the fundamentals at the moment and how they effect the price.
I am always open to book recommendations etc or new things to look at or learn…
I havent made hardly any trades yet even on the demo side of things as i really want to understand it fully before I begin, I want to actually do this properly so im thinking that is the best way
I haven’t used the demo account as of yet as I want to learn all i can first.
I thought the most obvious reasons were pretty well known to be reasons.