Please honourable house members, as a newbie which pairs am I t to trade. Can I trade all pairs, any pair or randomly. Advice and help. God bless.
The major pairs have tighter spreads so they should cost you less per trade. Most brokers offer good rates on AUD/USD, EUR/GBP, EUR/USD, GBP/USD and USD/JPY. Sometimes also EUR/JPY, GBP/JPY.
Minor pairs like EUR/CHF usually have wider spreads. Exotics like NOK/SEK even wider. Think about spreads in % terms, not just pips/points.
Helloooo @adealab-7! Haha. I agree with Tom. also think majors would be the way to go for those who are completely new to forex. There are also more people trading these pairs so I think it’d be easier to find someone to discuss trades with. Haha.
You should study the pairs and see which one you feel you understand and can predict. Also choose the pairs that are most volatile and with lower spreads. The majors fall in this category.
Major Fx pairs; as like EURUSD, GBPUSD etc; but not more than 2 pairs initially (it’s my own opinion).
If you’re just starting, try to limit to the FX Majors, and even then just focus in one at a time. By trading and creating a strategy you’ll be able to step by step start incorporating other pairs into your daily trades!
for a newbie, Trading majors is the best choice due to narrow spreads. So you can start trading with EURUSD, GBPUSD, EURGBP and USDJPY.
Gonna repeat what other people said, and go with the majors.
Yes; major pairs are always preferable; but newbie shouldn’t use more than 3 (in their early stage of trading).
+1 for the major pairs!
No pair is easy to make. if everyone needs it is spread, low commission, swap, …
Agree! I was jotting down the pairs, irrespective of the number one beginner should trade with. My bad!
I’m focusing on the majors, going steadily on the AUD/USD!
As it was mentioned before, it would be bettter to focus on one of the major currency pairs that are most popular among traders. First of all, such pair have sufficient volume, so there would be no huge spikes or slippage due to the lack of liquidity. Another important point is that it is much easier to find information on fundamental aspects impacting prices of major pairs, rather than for exotic ones.
By the way, you can also pay attention to commodities available through CFDs, provided by brokers: XAUGUSD and XAUUSD. It is easy enough to analyse them, and price patterns they form could be easily identified. To my mind Gold is one of the best instruments for newbie traders: it is not too volatile, and all price patterns on its charts look just they should be. It is also important to mention that you will be able to switch to trading commodities (as futures) when you would like to increase your size.
Another important advantage of popular pairs is that they could be used for backtesting strategies while it could be difficult to find historical data for exotic pairs. For example, you can use special backtesting software like Forex Tester to check the performance of your strategies using historical data provided by the brokers. It is also useful to find mistakes and improve your strategy.
So, you can focus on one pair or create a strategy that would work fine with several currency pairs.
Hello, would it be valid to use Currency Correlations such as XAUUSD, AUDUSD, USDJPY while being a beginner?
Thank you
I used only 2 pairs in my 1st 6 months of demo trading; it helped me a lot to settle down.
yup! focusing on just 1 or 2 pairs will definitely help
Completely agree. This should be the approach!
only majors, best for beginners. better focus on EUR/USD, EURGBP for now.
agree mate with you . newcomers always focus on only majors , besides this , they can trade at any pair in demo to see the performance how it works.