I started with EURUSD as the research I did indicated that it was one of the most liquid and thus more likely to be stable (if such a term can be said to apply to any currency pair).
I started with EURUSD as the research I did indicated that it was one of the most liquid and thus more likely to be stable (if such a term can be said to apply to any currency pair).
Ignored
I concur. Other pairs you might opt are USD/JPY (tokyo session also offers best spreads) or GBP/USD (london and US, plus has the volitility bonus will good moves). EURUSD is a great alround pairing with great spreads and usually good movement. As Gulf stated, pick 1 pair and learn it inside and out.
I also believe like some of the traders here that EURUSD is the best pair to choose. Has the lowest spread to begin with and will provide plenty of entry opportunities 24 hours a day for you to trade.
Now - the real discussion is: which system are you planning to trade? Do you have a money management strategy? Have you traded on DEMO account?
I started with EURUSD as the research I did indicated that it was one of the most liquid and thus more likely to be stable (if such a term can be said to apply to any currency pair).
Ignored
thanks
Is it true that liquid currency pair means cheaper spreads?
EURUSD - most popular, has the biggest volume, somebody thinks it is also most predictable, the huge amount of information about trading with EURUSD is available for free. Next step would be all majors. But EURUSD is defiantly number one!
Is it true that liquid currency pair means cheaper spreads?
Ignored
As Marv noted, I believe that to be the case. Presumably it is like any market, the greater the number of participants the easier it is for those handling the buying and selling to make enough money to cover their fixed overheads on volume rather than margin.
I concur. Other pairs you might opt are USD/JPY (tokyo session also offers best spreads) or GBP/USD (london and US, plus has the volitility bonus will good moves). EURUSD is a great alround pairing with great spreads and usually good movement. As Gulf stated, pick 1 pair and learn it inside and out.
Ignored
I was advised to avoid GBP/USD while i'm getting started as it might be expensive on the losing side... What do you think of it? Can it be true or the author has very subjective opinion?
I think timeframe is very important too and how much time do you have for trading. lets say you can only trade 1 hour per week or so, then you obviously have to stick to daily charts or 4 hour charts and therefore you will be waiting for a signal very long so you could be looking up other pairs as well for a specific signal.
if you trade below 1 hour chart you should probably stick to one pair it will give you enough signals for a beginner.
I also believe like some of the traders here that EURUSD is the best pair to choose. Has the lowest spread to begin with and will provide plenty of entry opportunities 24 hours a day for you to trade.
Now - the real discussion is: which system are you planning to trade? Do you have a money management strategy? Have you traded on DEMO account?
==
Maestro
Ignored
Actually, i'm a very beginner. I asked this question to choose the pair for starting demoing. I think demoing pairs which i'm not going to trade seems not very wise. How can I have money management strategy if i don't know what to trade yet? I believe spreads, enter/exit points, pips and other stuff (which are elements of trading plan) depend on very particular pair you trade. Am i wrong (i assume i can be wrong)? All i know about is my future broker NordFX. That's all i know
When looking for pairs to trade, avoid any that look choppy, look at the daily chart, and if you see lots of up and down bars one after the other, and spinning tops and general tailing action in either direction- avoid! the usd/cad being a prime example at the moment(unless working with very small time frames when the larger picture is not as important)
also consider the spreads and the type of trading you want to do, if you are looking to take very short term trades the things like eur/cad are out,
my two pet hates are the eur/gbp and the usd/jpy. i never won a trade on the eur/gbp in 2010! i no longer trade it.
look for pairs that are trending and are respecting technical levels well, if its all over the place then stay away.
my fav's at the moment are
eur/usd
nzd/usd
gold
silver
eur/aus
eur/cad
beginners may wish to avoid gold and silver.
i made a lot of money last year on the eur/aus and eur/cad. not so many people watch them and while they were banging there head on a wall with other pairs, the eur/aus and eur/cad were in beautiful down trends.
so long as your not looking for scalps these pairs are worth a look in my view.
