Pairs to trade for beginners
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thread: Pairs to trade for beginners

  1. #1
    Junior Member oxno25's Avatar
    18

    Pairs to trade for beginners

    I am relatively new to Forex trading and want to practice a bit with my demo account. This is not a question.

    Can you guys find that a certain pair of currencies are simpler to exchange for beginners? A market which has a clear bias for uptrend/downtrend or one which is proven to be currently ranging?

    If you should recommend a chart now for a beginner to exchange and learn from, what would it be and why?

    Thanks for your time

  2. #2
    Euro usd I good for start helps a lot and builds confidence

  3. #3
    Junior Member oxno25's Avatar
    18
    The main currency or your bench mark is the USD.
    That orders most of the pricing for many currencies and commodities on earth because of it's reserve currency status.

    There Eur/usd,Gbp/Usd, Aud/Usd, Nzd/USD, are optimistic correlated currencies
    the USD/JPY, USD/CAD, USD/CHF, are negative correlated currencies

    the EUR/JPY is the only other pair not between the USD in it's pricing

    all other pairs are artificial EUR/GBP is Eur/Usd vs Gbp/Usd etc


    now the correlation is not equals one

    individual economic policies,...
    Thank you very much for the enlightening reply. I must admit that a lot of it passed right over my mind, I'm a beginner here.

    But apparently, I would not expect to begin with pairs not such as the USD, which you seem to be a firm believer in, I'm glad your experienced reply confirmed that.

    That I am going to adhere to EURUSD for today, especially during the time when European market matches the US market.

    Thank you very much again, going through your profile, sounds like you are much liked here

  4. #4
    Junior Member oxno25's Avatar
    18
    Euro usd I great for beginning helps a lot and builds confidence
    Yep, I agree today. I've read much about that for the past couple of hours and I understood it is best to begin with that pair when you're starting out.

    Thank you

  5. #5
    Junior Member Croccixio's Avatar
    25
    On the one side that is EURUSD since it's market with higher volatility and also you can best train your abilities.

    On the opposite side USDJPY includes a lot of perspectives despite the astrophe in Japan now... Can be intriguing and it changes not so quickly. You are able to trade on news.

  6. #6
    Junior Member oxno25's Avatar
    18
    On the 1 side that's EURUSD since it is market with high volatility and you can best train your skills.

    On the other side USDJPY has a lot of views despite the astrophe in Japan today... Can be intriguing and it changes not so quickly. You can trade on news here.
    Thank you very much, this is precisely the type of answer I needed. And thank you for utilizing the correct phrase that I looking for in my mind, train your skills.

    I see the point about EURUSD using its high volatility, so which means it'd be logical and would reveal to you the real colors of the Forex market. I agree with that alot now.

    But regarding USDJPY, I am not certain about any of this, I see the USDJPY chart going sane and perfect, then all of a sudden something pops up in the Western Central Bank and oops, the market looses it. It leaves me frued occasionally.

    But nonetheless, I will follow your advice and check the JPY more frequently.

    Thank you

  7. #7
    Aud/usd is good for coaching technical trader,

    eur/usd is quite fundamental and fashion biased.

    Actually all pairs will be exactly the same, I would urge you studying one pair and comprehend its volatility and behavior. Trade it together with dollar index, gold, oil and shares as reference [ not stating to trade those gold, oil, but merely to observe the co-relation in some sort.
    .

  8. #8
    Junior Member oxno25's Avatar
    18
    aud/usd is good for coaching technical trader,

    eur/usd is quite fundamental and trend biased.

    Actually all pairs are the same, I recommend you studying one pair and comprehend its volatility and behavior. Trade it together with dollar index, gold, oil and stocks as reference [ not stating to trade people gold, oil etc, but merely to see that the co-relation in some type.
    .
    Why the AUD/USD? Is there a reason behind this particular pair to be great for technical analysis?

    But really intriguing concerning the oil and gold, why do you recommend this? Nobody known to them before. I'm rather interested to know your perspective.

    Thank you very much for the time along with the sharing.

  9. #9
    Gal?ctico
    Guest
    Hey,

    I had also read your article in my journal (will answer it later on).

    I believe there's no such pair, you need to learn how the market behaves, how it's shing and how will you benefit from that knowledge.

    I will tell you (in my experience) that all pairs and all markets behave exactly the same according to support and resistance, if I would cover the name of the chart, will you tell it is the EURUSD? Or the USDILS? , the answer is no.

    Thus, you want to start learning what makes the market going, and build your confidence and trading plan from there.

    That's how I had started and I think it's the best approach.

    Should you require a place to start with, I will suggest some, only PM me.

    Shalom my friend

  10. #10
    Why the AUD/USD? Can there be a reason for that certain pair to be good for technical analysis?

    But very intriguing about the oil and gold, why would you recommend that? Nobody known to them before. I'm rather interested to know your perspective.

    Thank you very much for your time along with the sharing.
    If you're trading those not so recognized pairs, their spreads are large. Typical pairs are like eur/usd, gbp/usd, nzd/usd, usd/jpy, eur/jpy, aud/usd. Exotic pairs like gbp/Nzd, eur/AUD, usd/sgd have greater spreads, rather than perfect to trade for novices.

    If you're trading eur/usd, gbp/usd, gbp/jpy, or any exotic pairs, you will likely to acquire emotional because of higher volatility, if you're not using stop loss, and even if u do, as newcomer, your stop will be too easily to be removed.

    AUD/USD is some sort of technical pair, it admire support/resistance very well, and when it break it, u will know because of price action, where as mad pairs like eur/usd may not even give you that slight retracement or chance to decrease your incorrect position as it can go down and up 100-200 pips in 30mins or perhaps 1-5mins time in heavy fundamental period.

    Oil and gold aren't suitable for novices to trade, you're merely using them as guide and understanding about risk on, risk off, strengthen of dollar index of weaken.

    For instance, about the tip point of the news release, gold drop 50-60 points, and eur follow along, you might want to search for shorts on indice/stock/ aud/usd at certain degree of resistance, as dollar index is strengthening , all cross pairs are very likely to collapse also. Much like what happened on friday.

    Gold is generally the initial indior, if u see gold spiking upward, u might want to go long on seeing that too, because usd will probably be slowed likely, as a result of inflation / risk on, and oil will shoot up too etc etc..

    U might also want to take note of cac40, dax60, sp 500, dowjones and as these indices reflect whats going on in the market.

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