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How do I choose a currency pair for Forex trading?


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Here are some steps that you can take to choose the best currency pairs to trade in forex:

1- Open charts of at least seven currency pairs

This could be your morning coffee time read. Before getting distracted by the news and the noise from the media, it is always best to take an unbiased look at the charts to see how the markets are doing. Which pairs are under pressure? Are any of them consolidating? Which pairs are moving up? Is there a specific currency that is behaving the same against most other currencies? This initial, unbiased interaction with the currency pairs on the forex dance floor is important because it will help you prepare for the next step of choosing the best currency pairs to trade in forex.

2- Skim through the latest market news:

Now that you have your heart set on a few currencies, you can quickly listen to the latest global news on your local news media, to see if there are any unusual market updates. This can include a Chinese stock market drop, a (lack of) interest rates hike, or a Swiss Franc jawboning). Reading the news will help you discover the latest market sentiment and the risk-off/ risk-on situation of the best currency pairs to trade in forex. We would typically want to avoid currency pairs that are facing huge volatility risk because even though one could argue you can find trading opportunities in volatile markets, I would argue chances are the market chaos and lack of a solid direction would kick you in the butt with unexpected surprises. Always better to be safe than sorry when it comes to investing your hard-earned cash!

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3- Check out Invest Diva’s blog for the latest forex trading strategies

Now that you have the breaking news on hand, you can turn to our blog for the longer term, solid trading strategies on select currency pairs. If you find the currency pairs you had your eyes on, great! Read on and find out if these are the best currency pairs to trade in forex right now.

You should also determine if these pairs are suitable for your portfolio at this time. It is important to note that we don’t publish forex trading strategies for every currency pair, every day. The reasons include our goal to cut down on market noise, as well as avoiding to mislead forex traders to trade more than they should. We have noticed that traders with larger risk appetite tend to jump on any trading signal we publish, whether it is suitable for their portfolio or not. So, in order to promote responsible trading, we have limited our trading signals to only 3 per week. Anything more than that needs a thorough consultation with your truly, to analyze your current account, open positions, available margin, investment portfolio, and more.

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  • 1 month later...

First of all, it is very important to choose a broker in trading. Because you can't trade Forex without a broker. First of all, you need to know about the broker. What spreads the broker is giving me. It is very important to know what are the benefits of a broker. I use Eurotrader broker platform. Surviving a major pair is best for trading because the spread in a major pair is low. And Major Pair's movement is much better. If you want, you can see the list of Major Pairs from Google.
 

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  • 3 years later...

Gradual development must touch your psychology. Poor psychology and pitfalls of psychology like emotion, greed can lead us to go bust in the long run. The more we stay with the market, the more we can flourish our knowledge. FXOpulence provides an educational program for free that can help you build up your psychology.

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  • 5 months later...

That's why when choosing a broker, it should be carefully considered, as the broker serves as a bridge for traders to engage in forex trading. That's why I chose to join Tickmill as my broker, so that my trading can be comfortable and secure.

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  • 1 month later...

Broker selection should be carefully considered, as brokers serve as a bridge for traders to engage in forex trading. That's why I chose to join Tickmill, so I can trade forex comfortably and safely.

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To profit in forex is not as easy as imagined. Everything requires process and time. Therefore, as traders, one must truly study and hone everything regularly, so that they can develop and trade maximally with Tickmill.

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  • 2 months later...

I enjoy trading major currency pairs. Such pairs usually have high liquidity and lower volatility compared to exotic or cross pairs. This makes them more predictable and suitable even for novice traders.

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