EUR or GBP Which is the most profitable pair for a Novice
I just wanted someones advice.... I am relativley new to trading and have been concentrating my efforts on trading breakouts on the GBP/USD.
I am doing quite well at this however someone made a comment that trading this currency pair I would be more prone to fake breakouts and whipsaws.
They suggested that as a novice the EUR/USD is better simply for the fact that it isn't as volatile and once it does breakout it is less prone to reversing on you.
Is there any truth in this? If so what are the reasons.
I am guessing the less volatile the easier it is to follow your rules and the psychologically it is easier... Am on the right route.
Also is their anything to do with the price movement itself being more definite?
I appreciate your feedback
Not a simple one or the other answer to me.
The pound moves more which helps overcome the spread and get paid.
The Euro behaves more technically.
I have a silly habit of doing my tech on the eur/usd and usd/chf and then trading the pound based on the tech of the other 2.
For me, I think this is the best of both worlds.
I understand.... I guess i'm looking for that no risk scenario which doesn't exist.
To behonest I have traded 10 breakouts in the last 2 weeks and 2 days and have made money on 8 out of ten of them on the GBP/USD.
I asked the question cos today I got whipsawed and then started reading threads and noticed people saying that GBP/USD is suicide for novices which in turn made me think that I did something wrong, which then made me look at the EUR/USD which showed me no signals for a breakout so I wouldn't of lost...... Which is why I posted this thread.....
Typical Newbie reaction
But generally speaking trading GBP/USD breakouts you guys say is a good way to go as long as the right money management system is in place.... I guess everyone loses sometimes.
trade whatever you feel comfortable trading and dont try to go to fast take your time learn one market at a time...IMHO thats the best way to learn...
I have a very good friend who became interested in trading a few years ago. He put a fair amount of time into learning, just like everyone else here. He read lots of books, blew out numerous demo accounts, and then eventually went live. After 1 year of live trading he had lost half his account.
We would meet everyday (we lived around the corner from each other) for coffee and talk trading for an hour or two. I would send him all kinds of things I was working on or learning about. I even tried building a few systems with him, but he never carried his weight. After two years of live trading he finally quit trading because he never made money at it. He told me that he knew it was time to quit when I told him one day,
"You're in love with the idea of being a successful trader, but you're not in love with trading."
He knew I was right, and as much as it pained him to do so, he stopped. Months later he was so relieved to have stopped that he was amazed by it. He's happier than I've seen him in years.
So, what's this have to do with your question? It's simple. My friend would have done exactly what you have just done. Come to a forum and ask the same question. Someone in love with trading would just backtest the hell out the pairs and find the answer for himself.
Don't take this personally. Think about it long and hard. If you truly love trading, then do your own work and never rely on anyone, especially on forums, to do your work for you.
although the above does not answer your question, it is something worth thinking of, and a truly sound advice.
regarding which pair, and assuming you have already answered to the question posed by Nat, well, it really depends on your plan. because you do have a trading plan, right? If you do, great, focus on one single pair, master it, then look for other horizons. Cable is a killer and gives you losses, but when you win you get great returns. However, if you dont have a plan, then:
Now you have 2 questions to think of.
I agree with Dopey. I trade range breakouts exclusively. I spend dozens of hours analyzing past behavior of five pairs that I've found most suitable for this: eurusd, gbpusd, usdchf, usdjpy, and eurjpy. Each one may be good for certain days and times. At the moment, I've identified more opportunities with cable than with euro, so what? It's not a question of or/or. I love them all. If tomorrow I'll see something interesting in, say, gbpjpy data - I'll go for it.
If I was doing good trading the GPBUSD I wouldn't switch to the EURUSD because someone said it was better.
Info on a possible GBP/USD strategy
in the markets, so it'll provide plenty of action for us. As long as you're
getting something out of it, fine.
Here's a link to a strategy I've never personally tried, but which
might come in handy for you. It's a link to a printable .pdf --
(Also known as the Big Ben Breakout)
You can find more ebooks and article reprints by perusing this site. Some are from
magazines, some are written up by traders.
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