How to choose a forex pair for novice traders?

[Suba]

The number of currency pairs available on the exchange will often make novice traders confused when choosing the right forex pair for themselves, pairs that can determine profits, especially for the short term.

In my opinion, the selection of the right forex pair for beginners will be very important before trading, especially we will know the characteristics of a pair, the strategy that will be used can at least minimize losses. According to seniors, it's better for novice traders to use the safest pair like (EUR/USD), or we can also use the pair we like, but we must analyze it first or we can also choose pairs based on criteria such as price range, liquidity , volatility, spreads and news. What do you think?

 

[FXOchartist]

Indeed there are so many trading pairs available on forex trading platform, there are major pair the most traded among traders around the world like EURUSD, GBPUSD, USDCAD,AUDUSD, USDJPY. USDCHF. or minor pair, and cross pair, choosing pair for newbie maybe need some requirement, low spread, good volatility and easy to analyzed. Many senior trader suggested newbie to trade EURUSD because this low spread pair even in FXOpen the spread could be zero. Another pair is USDJPY.

However newbie they need to learn and practice to get confidence to the trading strategy use demo account, experienced trader also can trying Ticktrader trading platform to get more experience using another platform besides MT4 or MT5.

 

[Jack Reacher]

Trading expertise is the valuable asset of traders and traders should go to every possible length to earn this. Those who are trading experts have market chart knowledge and they can predict the market’s movement by looting at the chart. For the development of traders, Eurotrader allows traders with a free educational program.

 

[YellowWitty]

I started with EUR/USD. USD/JPY is also a good pair. Try out major pairs and see which you are comfortable trading with. Imo, EUR/USD is good for newbies.

 

[Asahi]

As volatility is a threat to the survival of traders, try totrade in less volatile pair is good and free of risk but if you want to trade in highly volatile trading pair, you need a good trading broker. XADUSD includes high trading spread which will reduce your trading profit. Eurotrader offers such a reliable trading platform which is free of technical errors.

 

[Sociable]

It depends on your knowledge of the currencies. When selecting a currency pair, there are a few essential parameters to consider such as moderate volatility, high liquidity, and tighter spreads. If you enjoy taking the biggest risks, you should trade minor or exotic pairings, which have less liquidity and higher spreads but higher chances of return. However, I don’t recommend starting out with exotic pairs. So, be on the safe side. Major currency pairs are best to start trading. I would recommend choosing EUR/USD, USD/JPY, or GBP/USD.

 

[BinarySumo]

For novice traders, it is recommended to start with a major currency pair, such as EUR/USD or GBP/USD, which tend to have lower volatility and more liquidity.

 

[Dita Walczak]

Novice traders should trade in non-volatile trading pairs. Today’s brokers are using the advanced trading technology to provide enough support to scalpers. Eurotrader is a perfect broker for scalping because they use advanced trading technology.

 

[Mastergp]

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For novice traders, it is recommended to start with a major currency pair such as EUR/USD or USD/JPY. These pairs have the most liquidity, meaning they are the most actively traded and have the tightest spreads (the difference between the bid and ask price). This makes them more predictable and easier to trade. Additionally, they are also influenced by global economic factors, which can be easier to track and analyze for novice traders. As you gain more experience, you can branch out and start trading other pairs.

When choosing a currency pair as a novice trader, it is also important to consider your own time frame and risk tolerance. For example, if you have a short-term trading strategy, you may want to focus on pairs that have more volatility and are more affected by short-term economic events. If you have a longer-term strategy and can tolerate more risk, you may want to focus on pairs that are more influenced by long-term economic trends.
Another important factor to consider is the correlation between pairs. Some pairs tend to move in the same direction, while others move in opposite directions. Understanding the correlation between pairs can help you manage risk and diversify your portfolio.
It's also important to remember that the Forex market is open 24 hours a day, five days a week, so you can choose pairs that align with your schedule. And always remember to keep an eye on the news and economic events that could affect the pairs you are trading.
Lastly, it's also important to trade with a regulated broker and using proper risk management techniques such as stop loss orders and position sizing.

 

[saoussen5765]

It depends from many factors. The first thing that differs from one trader to another is to review forex broker terms of services. Some technics that you may have studied in forex broker courses may be allowed in another broker but for your one it is not allowed. Let's take the example of the technic of scalping. Other thing is if your real account is MT4 trader or MT5 trader. Because MT4 is currency pairs while MT5 involves other parts of trading like gold or oil or some companies then trading for peers is quite different from trading of EUR/JPY you do not found in MT5 one.