To Trade or not to Trade… that is the Question?

Filed under: Learn Forex Trading |

 

No – this article is not about whether or not you should trade, it is more about what you should trade. I just wanted to give it a catchy title! There are currently twenty-five forex pairs available to trade with my broker (well, twenty three forex pairs plus gold and silver). But you can probably trade even more than this with some brokers. So which of them should you trade? This is a question that different traders will answer in different ways.

 

Some traders might tell you that you should concentrate on one forex pair and get to know the ebb and flow of it in every intricate detail. That you should know your pair inside out and know everything about it. While it can no doubt be good to specialize, I find that there are simply not enough quality trade setups on one pair in the way that I trade. In order to make a living off of one forex pair, you would have to trade with either very high-risk levels, or you would have to take lots of trades on the shorter-term timeframes.

 

Other traders just trade the forex majors – which are the most liquid forex pairs and some say that they have more reliable setups. The forex majors consist of the EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF, USD/CAD, and sometimes the NZD/USD. So this gives you seven pairs to trade off, which is not bad at all.

 

Personally, I like to trade off of all of the forex pairs, plus gold and silver. This provides more high probability trade setups to choose from. However, I do try not to double up on my trades, and do not take similar looking trades on the same currency – I simply try to take the best looking setup. Well, that’s it for today, so I’ll see you tomorrow for yet another forex article.

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