Rules and characteristics exist; they are inherent to each currency pair. The main things that we have to pay attention to when we are choosing a currency pair is: I suggest to check the most popular currency pairs, and then choose a few that fits best for you. This currency pair is the most traded in the world because of its liquidity and tight spread. At first sight, this pair seems very simple. A lot of banks, funds, financial institutes and professional traders trade this currency pair, therefore it can be difficult to predict and can change movement several times a day.
The best way to trade this currency pair is to use a trend following strategies. This pair is popular because of its very straight and strong movements. Therefore, traders must take this into account when making trade decisions. However, when one least expects it the pairs can start moving in an entirely different direction. For beginners this currency pair is of medium difficulty, therefore a lot of precautions need to be made when trading this pair.
However, this pair is more suitable for long-term trends. This is the second most popular Forex pair. This pair can move in a completely unpredictable way at any moment and it can bring an unexpected profit or loss to your account. However, for those who know this currency pair very well it can be very profitable. However, when we already know its dynamics and how it moves, there can be opportunities.
This is considered to be a major Forex pair. However, it can be difficult for traders who trade using just technical analysis. Beginners can analyze this currency pair, to help them determine the movement of other pairs. This pair is more predictable than others as described above.
These two pairs are similar by their movements and are stable. These pairs are suitable for technical analysis because they have slow and calm movements. Therefore, when trading them it is worth getting to know the opinion of market analyzes. The dollars of Australia and New Zealand are sensitively to metal prices and weather conditions in Australia. These pairs are popular with a lot of traders and forecasters too.
For beginners these pairs are recommended, however one must pay attention to technical analysis and also to the price of metal and the weather conditions in these regions. This pair is sensitively to changes in oil prices.
When oil price appreciate the Canadian dollar also tends to appreciate. This is viewed as the least volatile of all the pairs. However, it is important to know that the price of this pair per pip is considerably bigger.
Therefore, even a small movement can affect your account. This pair tends tp be easier to predict the trend, however one has to take in consideration there can be big spikes. This is a pair suitable for beginners, however one should not forget that it can sometimes be unpredictable.
Therefore, small stops are quickly triggered out. Various fundamental factors must be considered when trading this pair, also banks and various financial institutions rarely analyze this pair, and only obvious trends can be predicted. This pair is a lot easier to predict and can be suitable for trading. Therefore, professionals often use a shorter time period so that they would be on time to make a successful trade, and they usually win because of that.
These currency pairs are not recommended for beginners. However in my opinion, when analyzing this currency pair there are sometimes unpredictable and sudden impulses which can quickly hit your stop-Loss orders.
However, it can sometimes move unpredictable. The Ruble is difficult, because it depends on a variety of fundamental factors such as oil price and common Russian economic status, etc. Another problem is the spread for this pair is very wide and changes quickly depending on the economic situations and can sometimes be a tremendous pips wide. There are no right or wrong answers to this question. Whether a pair is suitable for a trader depends on their personality and strategy.
Therefore, we have to decide which pair suits us best. These pairs are suitable for analysis, trends are more visible, and the characteristics of each pair are seen well. It is easier to say to which currency pairs one should not trade — which we were discussing in this post. One more suggestion for beginners — do not open more than two-three pairs at once. It is better to learn one currency pair and get to know its behavior well.
I got caught out a lot when I started because of this. Predictions tend to be very contradictory! It looks like you have quite a handle on currency. You made this more clear for me and I thank you for that! To discuss cooperation with licensed brokerage NewForex please contact me: Thank you for a straightforward intro to the issue of pair selection for a beginner.
As a beginner, this is very helpful in creating a strategy.More...