Which currency to trade during London trading hours

Hi,

I'm a little unsure of when and what to trade.

Currently I trade 4 pairs (EURUSD, GPDUSD, USDCHF, USDJPY) and I only trade from 9-17 GMT+1. This is in the London session, but I don't know if I can trade these pairs in this trading hours??

If not, let me know which pairs you recommend.

THX!

You can trade any instrument as long as there’s enough volatility to satisfy the needs of your strategy and as long as you see a good signal to trade.

Yes, druing london you can trade eur/usd , gbp/usd. NY session you can trade all pairs with usd

If you are trading ONLY at LO session you should watch on EUR and GBP...this two currencies will bring you 13 PAIRS to watch...I think this is more than enough.

Good point. I, personally, can never focus on more than two or three currency pairs at a time.

Thx! I changed some pairs, and is now watching GBPUSD, EURUSD and EURJPY

Add EUR/GBP and USD/JPY.

EUR/JPY can also be a pretty decent pair to trade, I’ve been trading it from time to time.

This will bring you more understanding,read carefully-http://www.forexfactory.com/showthread.php?t=334165.
EDIT:forgot about this one-http://www.babypips.com/school/high-school/currency-crosses/what-is-a-currency-cross-pair.html.

All Gbp and Eur pairs

I agree, but I think it’s also good to remind newbies that right now both these currencies, especially the GBP, are hugely dependent on politics.

London trading session is the most volatile session! So, you can use here any major currency pair even exotic pairs also! I usually use all of major pairs and Gold during London session!

I have never used Gold during London trading hours but this time I always depend on major currencies. I think there is nothing better devoid of major pairs during this time.

Well, I don’t have any particular choice on London session; even I am not concern about any trading session; I count only my trade’s quality! That’s way, I only open my new trade when I get fresh signal according to my system, trading session doesn’t mean much to me!

Exactly we all have to agree with this as the London session is the most volatile session to trade in my opinion.

If you ask me, the New York one tends to be just as volatile. I don't have much of an opinion on the Tokyo one since I haven't observed it much because I am usually very sleepy or asleep when it opens.

In London session markets move at random and as a newcomer I don’t like to trade .because it’s really difficult to calculate the real faction of this market with certainly during that time.

Trade the instruments you are more comfortable with and you think you understand the most. The trading session doesn’t really matter, as long as there is enough liquidity and volatility on the market.

The choice of pair/instrument is driven by 3 key factors:

1) Range
2) Spread
3) Time

1 - I am often surprised to see how traders will doggedly stick with a pair because they 'think' its a good pair but are unable to qualify why when asked. The answer is simple. In a given period, typically 24 hours in FX the pair will move from a designated opening price, to a potential high and a potential low. With a few exceptions, the volume of trading on each pair is roughly the same for every 5 day period.
So, if I am to sit at my desk and stare at a screen, why would I choose a pair like GBP/USD at the moment which has a 45 pip daily range for the last 5 days?? This means if I trade to PERFECTION I am likely to only see a total opportunity of 45 pips to generate, assuming of course I get in at exactly the perfect high/low. This is madness.


From this table (taken about 3 minutes ago) clearly the top 4 pairs like GBPCAD, GBPAUD and EURCAD generate 400 pips over a 24 hours period. Absolutely no reason why you wouldn't trade these.

2 - Spread, the cost of the transaction. Again, I am blown away how traders just suck up the spread from the broker. Right now on the top 3 pairs I just named above I am paying a spread of GC=1.4, GA=1.4 and EC=0.8. This is with a well funded account, and a firm word with the broker about what is reasonable to pay. This takes the 'burn' out of a position as I can easily account for the small cost of the trade. Quite how people can pay 10 pip spreads on some pairs and actually think there is a profit to be made is a bit of a giggle. See my comment on range above.

3 - Time. I read somewhere that about 70% of all FX transactions internationally happen during the London session. So, by extension, this will be the period of most activity. If you are outside of the EU region, just pull up a chart and take a look at what time the instrument you are looking at tends to move. Not hard. This doesn't mean you need to stick with FX, take a look at commodities or even CFD's. They are just 'things' to your trading strategy, no matter if it is a GBP or a barrel of oil or an index.

Thats my take.

I wouldn't say it moves at random unless there are news affecting the market. Usually there are pretty clear signals on the various charts and time frames.