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Additional Username
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Joined Dec 2015
|3,529 Posts
I agree. Start with one or two currency pairings, learn all you can about trading them and only the focus on others. Don't spread yourself too wide too quickly.
Guys you need to realise that trading 1 or 2 pairs is not an advantage to learning, its actually a major disadvantage. The market moves according to economic data releases and political news. In between these you have mostly randomness because the participants that move markets according to news are not trading. These are the periods that will bleed your accounts. Now if you just traded 1 or 2 pairs then you really only have market moving participants involved when there is news pertaining to those pairs. Moreover, if the fundentals behind these pairs are not optimal, I. E strongest against weakest, then you will only have limited opportunity available to you, all the market movers will be trading pairs you are not even watching.
Don't be fooled by threads you see on forums like eurusd thread and assume it's okay to just trade that pair. You will be slaughtered and ultimately learn to trade the wrong way. Why, because you are basing your foundation education on trading suboptimal opportunities. You will find periodically (medium term outlook) where the divergence of the fundamentals on each economy favours trading that pair but what about the rest of the time. Imagine trying to learn a pair where the fundamentals are more or less in balance where no new information is available to move things either way. Now you will find you have to learn range trading strategies but what if your merhod is based on trends.
It's madness and you are setting yourself up for failure. You will be better off having 6 to 10 major economies to work with and so long as you follow the market sentiment, you will be in a much better position to learn from the best opportunities.
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Additional Username
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Joined Dec 2015
|3,529 Posts
I do agree that it's better to follow multiple currency pairs, but newbies usually just don't know enough to do so. Yes, expand your horizon, learn how to do trade more currency pairs, but do so at your own pace.
I do agree that it's better to follow multiple currency pairs, but newbies usually just don't know enough to do so. Yes, expand your horizon, learn how to do trade more currency pairs, but do so at your own pace.
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Yes, trading with multiple trading pairs has a great advantage! But, I wouldn’t recommend to the new traders! New Forex traders try to use limited number like 1 or 2! Then gradually they should increase the number.
{quote} Yes, trading with multiple trading pairs has a great advantage! But, I wouldn’t recommend to the new traders! New Forex traders try to use limited number like 1 or 2! Then gradually they should increase the number.
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Which currency pairs would you recommend to newbies?
{quote} Any pair. The pair does absolutely not matter if you understand what price is doing. There is no such thing as best and worst pair. Study price, understand what liquidity is, understand orderflow and you will be able to open any asset and any time frame and trade it that way.
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I agree. I'd only add that maybe it's a good idea to avoid exotics at first, simply because there are very specific fundamentals involved in influencing them.
{quote} Any pair. The pair does absolutely not matter if you understand what price is doing. There is no such thing as best and worst pair. Study price, understand what liquidity is, understand orderflow and you will be able to open any asset and any time frame and trade it that way.
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But till now, new traders should focus on major Forex pairs instead of exotic pairs.
{quote} I agree. I'd only add that maybe it's a good idea to avoid exotics at first, simply because there are very specific fundamentals involved in influencing them.
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It is a good idea to avoid them in the start because they tend to be visually "dirtier", thus spotting where the orders might be sitting is tougher but with enough experience you should be able to trade any of these exotics.
Define "specific fundamentals"? Fundamentals are nothing else but supply and demand, so if you know how supply and demand works, then you should be able to trade it and I can assure you that you can find everything on the chart without even bothering with fundamentals (i.e. news of any sort).
{quote} But till now, new traders should focus on major Forex pairs instead of exotic pairs.
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Any major pair is always than others, newcomers should trade all major pair in demo to see the performance how it works. This approach always supportive to increase trading performance practically.
{quote} It is a good idea to avoid them in the start because they tend to be visually "dirtier", thus spotting where the orders might be sitting is tougher but with enough experience you should be able to trade any of these exotics. Define "specific fundamentals"? Fundamentals are nothing else but supply and demand, so if you know how supply and demand works, then you should be able to trade it and I can assure you that you can find everything on the chart without even bothering with fundamentals (i.e. news of any sort).
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I was referring to politics, actually. Political decisions which in turn affect their currencies in countries that are rarely in the focus of big media companies and about which many newbies may not know enough unless they have had a previous specific interest.
I'm a newbie here and I think the most convenient now is to follow just 2 maybe 3 pairs. The same strategy works with cryptocurrencies as well as I had my experience started exactly like this and it was quite comfy.
I'm a newbie here and I think the most convenient now is to follow just 2 maybe 3 pairs. The same strategy works with cryptocurrencies as well as I had my experience started exactly like this and it was quite comfy.
