What currency pairs to trade in Forex?
Post Number: 2
|Monday, February 07, 2011 - 05:54 am:||
For those who are planning to start up with Forex trading, it is best to start up with these major currency pairs.
US Dollar (USD)
British Pound (GBP)
Swiss Franc (CHF)
Japanese Yen (JPY)
Australian Dollar (AUD)
Canadian Dollar (CAD)
These currencies are widely traded and have tight spread so it is easier to get instant gain from them. Avoid trading rare currency pairs because this kind of trading needs further knowledge to trade such pairs successfully.
Post Number: 2247
|Monday, February 07, 2011 - 03:22 pm:||
Welcome to Incredible Charts forum - I hope you will really enjoy being on board. Nice to have others interested in Foreign Exchange on here - there are a few other regulars,
but like my self I suspect they are too busy with life and trading to get involved heavily in forum life.
Agree with your assessment there. But some of the less popularly traded pairs (eg EURAUD and AUDJPY) have some wide spreads. Further - the broker requires a larger
margin for this pair, because of the lower liquidity.
One of my best trades recently was the EURAUD on the 4H TF.
I found by waiting ... waiting ... like a hunter in wait for prey, that the EURAUD brought home the pips, despite the adverse trading conditions.
But I had to wear a spread of 10 pips, plus a Guaranteed Stop Loss Order premium of 8 pips - meaning I was behind by 18 pips before the trade began to make money for me.
Multiply that by the number of contracts I traded, and I thought: "This can't be real - what if it reverses now?"
I could not close the trade without automatically losing 18 pips x 'n' contracts, and although I was confident I had the edge, it was a tough trade initially.
I found this to be an obscene rip-off by my broker, and I told them so - but they emailed back and trotted out the line "We are competitive."
I shot back an email with a table comparing their spreads (see below) with the spreads of one of their Australian competitors.
I have obscured the names of these companies because neither deserves the publicity, and Colin doesn't deserve the legalities.
But you can easily see the advantage of shopping around.
I usually do NOT trade the EURAUD until it is a no-brainer for this reason - and it has helped me to trade better with all my selections for the same reason.
Moral to the story - only pick the low-hanging-fruit. There is plenty of it, and no need to be trying to force trades which are not ready to be taken.
Cheers - Ivan
Keep Smiling - Don't look back
Hell, there are no rules here - we're trying to accomplish something ~ Thomas A. Edison
Never believe that a few caring people can't change the world. For, indeed, that's all who ever have ~ Margaret Mead
Post Number: 134
|Sunday, May 08, 2011 - 11:06 am:||
hi Ingot , thats 1 harsh broker ticket , I play euro/usd (avg 11>15ticks spread) mainly along with usd /cad min trailing stop 15ticks (fully auto adjustable) along with stop loss and take profit with overriding manual close if wanted cheers Q