Howsit everyone.
New here, and obviously tons to still learn, but getting there slowly.
Quick question:
Trading from South Africa at about 18:00 CAT to after midnight (from 12pm Eastern Day Light)
Regards
If you want to spread risk, then don’t trade lots of pairs with the same currency. ie EURUSD, USDJPY, USDCHF you’d be exposed to a swing in USD affecting all 3 in the same way.
Stick to major pairs, exotics can move very quickly. GBPJPY is one of the most volatile majors, so perhaps stay away from that.
Hi, if you want minimaize risk, you can use strategies with low correlations in portfolio. Regards Greg
Its a rational question, especially from anyone with a background in equities, where most of us probably traded before forex. But I’m not sure there’s a realistic answer. Apart from the clear correlation between the same base currencies (e.g. USD/X, USD/Y, USD/Z) and the same counter currencies (e.g. A/JPY, B/JPY, C/JPY) most pairs move in line with their own long-term trends on most days but they all have counter-trend moves also on the same days as each other. This might be viewed as a reaction to risk rather than anything fundamental concerned with each individual currency. Net result is I think its impossible to diversify away more than a fraction of forex risk through additional forex positions.
Right now the markets are so volatile that no currency pair is exactly easy to trade.
Since you’re still learning I would pick one pair and trade it exclusively in a demo account. Taking on any more than that will slow down your rate of learning.
Stick to a few currencies - a tip I was told once is stick to your local currency and master it. For example, if you are from the US then look at USDCAD, USDJPY. Only trade 1/2 pairs to start with and master them. You don’t NEED to trade a lot of pairs to be profitable.
Eur/USD probably
Sounds good to me