Focussing on the right/wrong currency pairs

(...firstly - let me quickly say hello to everyone at the forum - seems like an excellent atmosphere here and a wealth of knowledge/wisdom being shared...)

Regarding currency pairs - have decided to concentrate on just a couple of pairings for a while, in an attempt to get my head around them more closely.

Obviously finding effective pairs to complement your style is going to be a personal thing... But does anyone have any experiences they could share - good or bad - concerning how different pairs have effected their trading performance?

For what reasons have you ended up sticking with/avoiding certain pairs?

I'm currently looking at cable for its obvious high-octane, tour-de-force excitement value, and NZD/USD which seems a little calmer and appears to be locking in nicely with fibonnaci retracements.

You should be looking for a loose correlation between your pairs, kind of portofolio diversification like, so you avoid being hit by many losers in a row.

If you've already make your mind on cable then you may add EURJPY, very nice pair by the way. I personally like both GBPUSD and EURJPY.

For correlation related info check Iso's great info: http://www.forexfactory.com/forexfor...ead.php?t=5902

And a similar thread as yours already exists http://www.forexfactory.com/forexfor...ead.php?t=5534

The USD is more volatile then any other, and any of the pairs with USD/*** or NZD/USD, GBP/USD move mostly in tandem, meaning trading most of the majors is a pro or anti - USD bet.

You should find non USD crosses move a little differently, and as they won't all tend to move at identical times in corresponding directions (but bear in mind mostly they are GBP or EUR against something else, so if the pound moves, or the euro, that will be reflected in their pairs).

You want to limit your risk, to perhaps 5% of your bank in any one position, but if I went long USD/CHF, long USD/ZAR, short GBP/USD, I would see that as almost like one position, as if the USD moves contrary to my bet all three will lose money, and the USD is more likely to gain or lose a percent or two than most other major currencies from what I understand. Therefore I would be limited to placing 1.67% of my bank on each of those if they were simultaneous positions.

you can substitute GBPUSD with USDCHF if GBP is too violent for you. EURJPY is a very nicely behaving animal. You should also consider the spreads when choosing your pairs.