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Currency pairs to start with as a beginner?

  • #21
  • Feb 14, 2011 2:43pm Feb 14, 2011 2:43pm
Do you have certain days that you avoid trading(e.g., No trading on Fridays or never while I am sunning on the bow of the 52 footer)?

It seems many avoid NFP days (this is Non-Farm payroll reports, isn't it?).
  • #22
  • Feb 14, 2011 4:02pm Feb 14, 2011 4:02pm
Quoting UgoDadeo
Do you have certain days that you avoid trading(e.g., No trading on Fridays or never while I am sunning on the bow of the 52 footer)?

It seems many avoid NFP days (this is Non-Farm payroll reports, isn't it?).
i wont take a position in the 2 days or so before NFP, or US GDP. I will normally check the calendar for the pair im trading and avoid trading if there are big news event on that pair, like GDP. you cant avoid them all because if you did you basically would never trade.

No trading over christmas.

if you are scalping dont trade on public holidays, no volitility=losing money generally. monday mornings before new york opens another poor time for scalping.

it will depend on the type of strategy you use and your desire for risk.
  • #23
  • Feb 21, 2011 12:31am Feb 21, 2011 12:31am
Quoting highlander2
if you are scalping dont trade on public holidays, no volitility=losing money generally. monday mornings before new york opens another poor time for scalping.
what to do with wide spreads during volatility? could you give some advice to avoid grate loss?
  • #24
  • Feb 21, 2011 4:50am Feb 21, 2011 4:50am
Quoting untitled_war
what to do with wide spreads during volatility? could you give some advice to avoid grate loss?
If you were trading after news, then you have to wait for the spread to come down to near normal. If you trade with a 10 point spread your at such a huge disadvantage its not worth trading. You just have to wait. Even then the spread can go up again, its just the way that type of trading is. I have done quite a bit of news trading with Oanda, after several occasions where their platform crashed i have not done it much since.

FXCMs platform seems fairly steady after news come out, the spread seems to retun to normal fairly quickly, although i have not used it for trading news.
  • #25
  • Feb 21, 2011 4:43pm Feb 21, 2011 4:43pm
In my opinion, you should start with the pair you are most familiar with. For example, if you live in Canada, the USD/CAD pair would be a good choice. If you live in Switzerland, the EUR/CHF would be a good choice to start with.

I am not from America or Norway however I choose the US Dollar / Norwegian Krone as my first trading pair because I studied charts and thought I knew where it was going. I took a serious beating because there were things going on in the American and Norwegian economies that I knew nothing about.
  • #26
  • Feb 22, 2011 3:18am Feb 22, 2011 3:18am
Quoting untitled_war
what to do with wide spreads during volatility? could you give some advice to avoid grate loss?
Stay out of the market!
  • #27
  • Feb 25, 2011 1:14am Feb 25, 2011 1:14am
I would suggest EUR/USD since estimated $1 Trillion is traded in EUR/USD everyday. There is big EUR/USD thread in forexfactory in interactive trading.
  • #28
  • Feb 28, 2011 4:53pm Feb 28, 2011 4:53pm
Quoting gottilt2
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.
thank you very much for so specific notice!!!
Okay, let's have fun...
  • #29
  • Feb 28, 2011 5:11pm Feb 28, 2011 5:11pm
Quoting highlander2
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...
Thank you for spending time answering my question. I appreciate your advices A LOT! I will definitely try it.
Okay, let's have fun...
  • #30
  • Mar 1, 2011 12:22am Mar 1, 2011 12:22am
Quoting St.Sarah
What currency pairs would you suggest to start with as a beginner?
Would you suggest to stick with the same pairs?

Thanks a lot
I wouldn’t recommend sticking to just one pair to a beginner. The problem most new traders face is lack of discipline and overtrading, and yet they all want to make money fast.

If you’ll be following only one pair, you can have a couple of days without a valid set-up, and then you most likely will push trades. Pick say half a dozen pairs, the USD majors are a good pick, and focus on 4H and Daily timeframes.

Don’t become one trick pony. Focusing on just one pair could lead to “creating” trades where none exists. Also the characteristics of pairs do change and you have to be able to adapt. However I wouldn’t recommend more than half a dozen as a maximum, because it could overload you.

Your decision about what to trade is depended on what is your edge, and how often it repeats itself in a market. Chart is a chart, and you should be able cherry pick the best setups that give you the highest probability, instead of forcing some crappy set-ups on just one chart were an opportunity might not exist for number of days in a row.
  • #31
  • Mar 1, 2011 2:19am Mar 1, 2011 2:19am
You can start with EURUSD and USCCHF. Correlation between these two pairs is very strong. It is comfortable to for market understanding.
  • #32
  • Mar 2, 2011 3:10pm Mar 2, 2011 3:10pm
Quoting Herd_master
I wouldn’t recommend sticking to just one pair to a beginner. The problem most new traders face is lack of discipline and overtrading, and yet they all want to make money fast.

If you’ll be following only one pair, you can have a couple of days without a valid set-up, and then you most likely will push trades. Pick say half a dozen pairs, the USD majors are a good pick, and focus on 4H and Daily timeframes.

Don’t become one trick pony. Focusing on just one pair could lead to “creating” trades where none exists. Also the characteristics of pairs...

I found this to be exactly the case for me. New to Forex, I got a system up and running and became bored waiting for the correct setup. I jumped the gun and got bounced for a loss quickly.

So I settled on 5 pairs, two groups using the same currencies. I chose EUR/USD with USD/CHF and EUR/CHF then I added USD/JPY and EUR/JPY.

I get a lot more practice looking at the charts and can still trade on the D1 time frame. Hopefully this balance will fit my schedule and my impatient personality
  • #33
  • Mar 2, 2011 3:48pm Mar 2, 2011 3:48pm
I used to trade USD/Jpy although i do have a question for someone who uses FXSOL im wonder why my meta4 doesnt seem to work?
  • #34
  • Mar 4, 2011 12:44am Mar 4, 2011 12:44am
Im new to the forum and have taken off my practice account training wheels and recently opened a small account to learn wih some skin in the game. Im in Australia and as such, other than through insomnia dont get much playtime when the US Market is at its busiest. My current though for focusing on a pairs is to learn :

The AUDUSD as I get a fair amont of background info through osmsis in local financial media (or indeed ausmosis).

The EURUSD as the evening is when Europe wakes up for us.

The USDCHK as a way of playing the Bear/Bull runs in "times of crisis"

Anyone got any particular insight into trading during the Asian market times I would be most appreciative.

Now to read the 30,000 threads I need to read to find out what I dont know.
  • #35
  • Mar 4, 2011 1:35am Mar 4, 2011 1:35am
Hi Jeheil, go back through your EURUSD charts, and note the previous day’s high/lows and how notice how difficult it is for the pair to break through those levels and to stay above/below these levels during low volume Asian sessions. Strategies can be created around this, though other factors need to be considered, such how far was extended the daily range of the previous day during European and US session, and if there is a confluence of other S/R zone that could make it difficult for the less liquid Asian session to bust through and to stay above/below and not just spike as a false breakout.

What you might also consider is not to limit yourself to trading Asian session or part of European session, but insteadtry to make money 24/5. You could do all the analysis and prepare your trading plan for all the pairs (only on 4H and higher timeframes). Then you can just put in contingent orders and go fishing or whatever. This way you’ll probably make more money and definitely with less stress than being married to the monitor while micromanaging intraday noisy “trends”.
  • #36
  • Mar 4, 2011 1:48am Mar 4, 2011 1:48am
Thanks for taking the time to post.

Im reading some of the beginners guides threads and it does appear that being more prescriptive and putting orders in as you suggest may not only be a good way of me forcing more strategy and longer term thinking upon myself, but it will also mean not getting caught in the 'at market' gambling that I suspect my trading to date would probably be classified as.

Thanks.
  • #37
  • Mar 4, 2011 2:01am Mar 4, 2011 2:01am
The easiest pairs to trade are the ones that do not have many wicky candles E/U is nice as well as Usd/Chf and I personally like the Usd/Jpy. The biggest thing is to get good R:R and a few setups you KNOW work!!
  • #38
  • Mar 10, 2011 6:49am Mar 10, 2011 6:49am
Quoting drumdude
The easiest pairs to trade are the ones that do not have many wicky candles E/U is nice as well as Usd/Chf and I personally like the Usd/Jpy. The biggest thing is to get good R:R and a few setups you KNOW work!!
Good advice to start with EURUSD and USDCHF. There is strong correlation between these pairs and it's very comfortable to hedge your positions. Specially with NFA regulated brokers.
  • #39
  • Mar 10, 2011 9:40am Mar 10, 2011 9:40am
Everyone is just gonna propose EurUsd. I would propose any of the majors.
  • #40
  • Jun 25, 2011 3:49pm Jun 25, 2011 3:49pm
i have no advice but i like to tell my own trading story about it.
at the begining , i dont know why , i had always traded gbp/usd and gbp/chf mostly and never traded eur/usd , about 2-3 years. now i am trading eur/usd and i find trading easy
its not any advice , its just my story
the best indicator is trader's knowledge , experience and dicipline.
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