EUR or GBP Which is the most profitable pair for a Novice | Forex Factory

Options

Permalinks
Print Thread

Similar Threads

Which currency pair do you trade the most? 14 replies

How to calculate which pair can I trade with the most units? 3 replies

Which currency pair is most suitable for beginners? 5 replies

In your opinion, which pair is the least choppy (i.e most trendy)? 5 replies

Which pair moves the most? 2 replies

EUR or GBP Which is the most profitable pair for a Novice

  • #1
  • First Post: Oct 24, 2006 8:13am Oct 24, 2006 8:13am
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
  • #2
  • Oct 24, 2006 8:29am Oct 24, 2006 8:29am
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.
Profit is where readiness meets Opportunity
  • #3
  • Oct 24, 2006 8:32am Oct 24, 2006 8:32am
Quoting Micardo
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
Trading breakouts of the GBP/USD offers some of the best trading opportunities in forex in my opinion especially at the beginning of the European session. Volatility is good when trading range breakouts. Fake breakouts will always happen on occasion but using sensible money management and by trading in multiple lots you are able to take some initial profit at an appropriate level and raise your stops accordingly.
  • #4
  • Oct 24, 2006 8:43am Oct 24, 2006 8:43am
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.
  • #5
  • Jan 26, 2007 9:12pm Jan 26, 2007 9:12pm
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...
  • #6
  • Jan 27, 2007 3:03am Jan 27, 2007 3:03am
Micardo,

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.

Nat
  • #7
  • Jan 27, 2007 3:21am Jan 27, 2007 3:21am
Quoting Dopey
Micardo,

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.

Nat
Excellent post, Nat

Micardo,
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.

regards

g
With a break always expect a pullback, otherwise, you're dead meat/
  • #8
  • Jan 27, 2007 5:38am Jan 27, 2007 5:38am
Quoting Micardo
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
if can master trend and trend pullbacks then GBPUSD is perfect.
  • #9
  • Jan 30, 2007 8:27pm Jan 30, 2007 8:27pm
Quoting Dopey
Micardo,

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.

Nat
I think one of my friends is just like your friend Nat. I know this guy who's so crazy about trading but the funny thing is he never reads all the materials and techniques that I sent to him. He never backtests and he keeps giving excuses like "too busy to read". I mean if he really loves trading, he will find the time no matter what.
  • #10
  • Jan 30, 2007 11:29pm Jan 30, 2007 11:29pm
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.
sans peur et sans reproche
  • #11
  • Jan 30, 2007 11:37pm Jan 30, 2007 11:37pm
If I was doing good trading the GPBUSD I wouldn't switch to the EURUSD because someone said it was better.
How you act is more important than how you feel.
  • #12
  • Last Post: Mar 22, 2010 7:52am Mar 22, 2010 7:52am
Quoting Warmagus
If I was doing good trading the GPBUSD I wouldn't switch to the EURUSD because someone said it was better.
The GBP/USD is apparently one of the four most-traded currency pairs
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 --

http://www.forexmt4.com/mt_yahoo/pdf...20strategy.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.

http://pdfdatabase.com/forex.html
HELL IS EMPTY, ALL THE DEVILS ARE HERE. -- Shakespeare
0 traders viewing now