Avoid Volatile Pairs As A Beginner

[moonchild]

Volatile currency pairs are those that move very fast and often don't maintain market structure, these pairs have high spread and they're not advisable for small account holders, they can wipe your account within a blink of an eye.

They have a high lot size and most of the times they move sideways, they mostly retest previous zones while most of the times they don't even respect these zones.

Also volatility can be caused by many factored apart from the nature of the currency pair, some of these might be news, during Covid 19 a lot of pairs are very Volatile because the economy is being shut, unemployment was on the rise and people are not transacting dur to the lock down situation.

Another reason for volatility in the marketplace is, NFP, which is known as non farm payroll, this is the time that the United States releases the monthly data on unemployment and market kind of fluctuates depending on the direction of the news either positive or negative.

Personally, when I fund my account with a small deposit, I delete these pairs and just leave the slow moving pairs because a single retracement can lead to. A margin call.

 

[Dita Walczak]

I think, it’s a good idea; so new traders should focus on only major Forex currencies as like EURUSD, USDJPY etc! On other hand, new trader need to avoid Gold, Bitcoin like volatile trading pairs! By the way, volatile pairs are more profitable for the skilled traders!