How to Pick the Best Forex Pairs for Trading? | - Daily Invest News

Posted: 16 Oct 2020 12:00 AM PDT

There is no right or wrong strategy when it comes to trading with forex pairs, considering that they vary among investors due to different individual needs. For instance, if forex pairs with tight spreads are likely your choice of trade, this may not apply to others.

However, there are certain parameters that always come in handy when selecting pairs for your trading needs. Before discussing those factors though, let us recap the various types of currency pairs available for trading.

Types of Forex Pairs

Forex pairs are generally sectioned into three categories which differ in terms of the volatility they offer, seeing as some are considerably more volatile than others when compared.

CHF USD Currency Pair Fighting in Blue Red and White Background

Majors: If you intend to opt for the most traded pairs globally, then this is what you are looking for. Major currency pairs are popular around the globe and each pair has the US dollar on one side. The liquidity is considerable among major pairs. Therefore, you can always count on them for available trading choices. In addition, they also offer lower spreads with fewer brokerage costs.

Minors: These are still highly traded currency pairs, however, they do not include USD. Hence, if you intend to trade with popular currency pairs, excluding USD as one part of the pair, you might want to consider minors. The volume is considerably higher with these pairs and when compared to majors, the volatility is admittedly higher, but stable altogether.

Exotics: This currency pair, known as an exotic pair, includes one major currency that is coupled with another currency from a developing nation. Such as USD/HKD, EUR/TRY, and many others. The volumes are often lower and they offer very high volatility.

Factors to Consider When Choosing Forex Trading Pairs

By paying attention to some of the important factors, you can actually save yourself from bigger losses. Although predictions cannot guarantee high returns, one can still manage to play safely around volatile assets.

Currency Spreads

Tighter currency spreads have their own advantages and are highly popular among those who mostly care about spreads. You can connect less spread to high profit. In other words, the lesser the spread the higher the fluctuation in price, which in return provides better opportunities to make gains right away.

Trading Sessions

The higher the volume for trading, the greater the opportunity for completing a trade with a profit margin. Therefore, it is always advisable to select the trading sessions when the market has reached its peak. In other words, trading during active markets provide traders with higher profits. For those trading during Asian hours, you must choose the pairs that are active between 7 PM EST to 10 PM EST.

For instance, you may notice that there might not be much movement for currency pairs combining AUD/USD during this trading session. Therefore, if you wish to have the leverage of choosing any pair, regardless of the trading market opening time, trade after the London market opens. At this interval, you get movement for almost every currency pair.

Technical Indicators

Graphs and charts provide a better insight into the forex pairs that are trending currently. You may feel that volatility brings better opportunities for higher gains, however, it increases the chances for higher losses as well. Hence, most traders consider technical analyses as a way of better predicting the market.

In addition, you may not expect certain pairs, that are usually assumed to show a negative correlation, to possibly trend better than those that have showcased better results in the past. Therefore, it is always advisable to stay tuned with the current trends.

Conclusion Trading with Forex pairs is highly beneficial, if you know which ones to choose. If you happen to be a beginner, you need to check all the factors that come into play when deciding on the best pairs. The parameters mentioned above are meant to give you a head start. As you continue to trade, you will learn more about choosing th

Jacob Maslow

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The Best and Fastest You Can Learn Trading Forex With Success - eTurboNews | Trends | Travel News

Posted: 26 Oct 2020 02:29 AM PDT

People are more interested than ever in the past couple of years in trading, but the fact remains lots of them stay bitter after a couple of trades because they didn't have proper experience or guidance. They usually act impulsively and believe in scam commercials that say you can get thousands in a day. The crucial thing is to get your facts checked and do as much preparation as you can.

Trading forex without any preparation or prior experience can be a daunting task and is usually a quick way to lose the money invested. In this article, we want to walk you through the best and fastest ways to learn how to trade forex to maximize your chances of success!

Theory AND Practice

One of the great things about forex trading platforms is that traders can combine their theoretical knowledge with practicing with real-time data and market movements. This is due to most forex platforms having a "demo" or "trial" mode, where you can play around with a certain amount of virtual money. In "demo" mode, you have not invested any money and have a set amount of virtual currency (usually 50,000 – 100,000 USD) to play around with and experiment. The free play mode will let you try your hand at some trades you might not usually contemplate and is excellent for learning about the specific platforms.

Which to start first?

This would depend on you and your best learning approaches. Whether you prefer to read up before trying out what you've read, starting the two in parallel, or just wanting to play around the platform first before you start acquiring more in-depth knowledge, "demo" modes are accommodating for all learning styles.

Theory

The relatively recent proliferation of websites discussing and teaching everything from Fibonacci retracement and its use, basics of technical analysis and trading strategies have been a boon for the smart beginner traders. You can learn everything you would need to know how to make an informed buy or sell decision on these sites. Here you can also find people sharing their successes and failures, so you can learn directly from them about some of the pitfalls of trading and how to avoid them. A lot of trading platforms will have their own training videos on how to use the platform, as well as videos or webinars on the fundamentals of trading, which could be great resources for those on the fence who need to see how things work before dipping a toe into the world of forex trading.

Practice

If you're asking yourself: "Why should I not just trade after learning from different websites?" the answer is: "You can!". However, it would also be useful to exercise some of your newly acquired knowledge and practice using the platforms themselves. Some platforms like eToro will allow you to make significant changes to orders, stop loss, or take win triggers, so it would be good to know how to use those to protect your investments. Using these orders will also allow you to automate some of your trading activities, so you would not need to be stuck to the screen at all times and react with the speed of a rattlesnake on energy drinks to make the best of the market.

Final thoughts

There are a lot of resources out there to teach you how to trade forex these days. It is no longer a niche of activity; it was a few years ago, which is a great thing! Why? Because all that wealth of knowledge is now available to new traders and will save them a lot of time and effort. The "demo" account will also show them how easy it can be to learn how to trade, implement that knowledge, and encourage them to start trading with "live" accounts.

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