Every pair requires a different strategy to work. However, you can start trading with EUR/USD initially. It’s a very liquid and less volatile pair.
Every trader has his own basic requirement for trading and the choice for currency pairs will also depend on it. It is always good to begin with major pairs like EUR/USD as it is easier to predict the movement of major currency pairs.
Focus on strategy and not pair
Forex Trading is highly volatile so for a beginner EUR USD and GBP USD are the best currency pairs as they have the highest liquidity and are supported by a sound economic system.
I’ll say, EURUSD is the best pair to go for beginners to trade.
I like to trade with EUR/USD, and all the new traders should start with this because it is easy to trade. You can pick any major pair. They are generally less volatile.
Inarguably it’s eur/usd. The pair is more predictable than others, and highly liquid too. So you’ll find good trading opportunities.
Assuming that newbies still have no well-defined edge for some particular pair, the best what they can do with little to no skill is focus on transaction costs. A way to reduce them is to pick currency pairs that are offered with small or zero spread like EURUSD, GBPUSD and a couple of other majors. For example I trade with zero spread at Hotforex, however there is no way to avoid commission, but still after many trades you will notice the difference as lower transaction costs means you can be profitable with lower win ratio.
Forex beginners are always eager to learn forex trading online as an opportunity to make money and they always wonder how to get started. It’s important to have a deep understanding of how the market works and best practices for forex trading.
For beginners, it’s always advised to trade on major and common pairs. They are easier to follow, analyze and trade.
Most of the top currency pair traded is always comes from a country or continent which holds a strong economic status such as the European continent, United States, Japan, United Kingdom, Switzerland, Australia, New Zealand, and Canada.
The 7 major pairs for beginners to trade are EUR-USD, GBP-USD, AUD-USD, NZD-USD, USD-CAD, USD-CHF, and USD-JPY. These major pairs are often referred by their nicknames such as Euro for EUR-USD, Cable for GBP-USD, Aussie for AUD-USD, Kiwi for NZD-USD, Loonie for USD-CAD, Swissy for USD-CHF, and Yen for USD-JPY.
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New traders should trade with any one liquid pair of their choice. Major pairs like EUR/USD, USD.JPY, and GBP/USD are all good pairs to begin. All pairs require different strategies, and in order to make substantial profits, one pair is enough to focus.
I would recommend trading some popular majors like EURUSD for several reasons, First of all, that is one of the most liquid and volatile currency pairs on Forex. This fact will make trading more or less clear and predictable. If you go to some exotic pairs, they have the chances to destroy your trading budget very soon, as they have low liquidity. Another reason is the fact that there are so many useful articles and tutorials which are devoted to this currency pair. So that, you will get much more relevant information about trading and you can apply this information on practice.
Because of the lower volatility, I agree with the majority of users that the EURUSD is the ideal pair for novices. Beginner traders can make consistent gains with a few strong tactics and money management abilities.
I think it is very important to study the forex pair first before opening any trade on it. One can start with EURUSD, EURGBP or GBPUSD for understanding the market moves.
As per my opinion, these are the top three currency pairs to trade for beginners:
- The euro and US dollar: EUR/USD.
- The US dollar and Japanese yen: USD/JPY.
- The British pound sterling and US dollar: GBP/USD.
Newbies, in my opinion, should stick to the popular currency pairs simply because there is an absolute wealth of information about them - tutorials, analyses, news, etc. That is not always the case with the exotics.
You’d better look for the majors, pals. Minors and exotic pairs are too unpredictable. Master EURUSD first, and then learn other pairs gradually.
How do I get a good indicator with good signal strength. I’m new to Forex trading
There are not any specific, I would suggest if you’re new to trading dont go for any indicator rather than give some time to trace the price movements by drawing accurate support and resistance.
Beginners should definetely start with the majors. I think that the best decision would be to start with eurusd because it is the most liquid and volatile currency pair in forex. However, I think that the most important thing here is that you can find lots of information about trading this currency pairs. I feel that 80% of all of the trading strategies are explained on the eurusd pair.