The releases of measurements of national economics metrics can strongly influence the exchange rate. The currency is based on the national economy, the stronger economy, the stronger currency.

As it was said, traders need to sell one currency to buy another one. Traders make money from currency value fluctuations. They buy it when it starts to rise and sell it when it starts to fall, so they gain a difference. There is a relation between currency pairs, we can say that historically some currency pairs move in one direction and some in the opposite.

Correlation can help traders to predict currency pairs further and diversify risks. The general concept of liquidity refers to the speed at which a particular asset can be turned into cash. For example, money on the card has more liquidity than real estate. Simply put, liquidity in the Forex is the ability to easily buy and sell a currency pair. Liquidity can vary depending on several factors, like time of trading the pairs with JPY have higher liquidity while Asian Forex market working hours and lower in European.

Major Forex pairs usually are more liquid because they are just more popular to trade. Because the low liquidity means that the number of buyers is lower than sellers. The importance of choosing high liquid currency pairs is an opportunity to close deals without difficulties and not hold an unprofitable position. Volatility is a range of price changes during a certain period. The advantage of trading volatile currency pairs is more potential gain. As traders get profit from price fluctuations.

Traders can use lower leverage but have quite a fast profit from the deal. The disadvantage is the importance of having the experience to trade more volatile pairs in order not to lose money. Since the strategy for trading volatile pairs, it is necessary to check the strategy.

Also, trading volatility supposedly has a bigger spread, but it can be compensated by faster and bigger profit. Predictable currency pairs signify the opportunity of making accurate assumptions about currency pair price movement.

It depends on the measure of economic transparency, the availability of information about economic, political, and social situations, and the currency movement in the past. The currency pairs that include the United States dollar are called major. Usually, major currency pairs are the most attractive for traders, because of their higher liquidity. The most traded currency in the world is the U. Currency rates of major pairs are affected by interest rates set up by central banks, the rising interest rates make countries more attractive for investment and strengthen the currency.

Also, rates are influenced by economical and political data. Political releases that announce impressive changes affect the rate. The information about elections or international treaties can change the rate in a minute. As was mentioned major currency pairs are more traded, so have higher liquidity. Also, these pairs are considered to be more predictable, because there is more reliable information about major currency pairs so it is easier to do accurate forecasts.

But also the abundance of information can lead to difficulties in the analysis since it will take a very long time. Therefore, only add these pairs if you can comfortably adjust position size based on varying pip values, spreads, and volatility.

Ideally, if trading multiple pairs at the same time, those positions should uncorrelated. We can run into traps no matter what we do. We tell ourselves a low-quality trade still has a chance of boosting our account value. Maybe a few times we get lucky, but if we take many poor quality trades, over time we will lose. Similarly, looking through too many charts can make us feel that there are trades in all them of, instead of comparing the charts to see which one or two offer the best opportunity.

Or possibly, looking through too many charts freezes us! So there is no perfect answer on which pairs to trade. Our trading styles and personalities can complicate things. The ultimate goal is to be honest with ourselves, and no matter what, put ourselves in the best position to take quality trades. For some people that will mean limiting the number of pairs they look at.

For others, it will mean looking at lots of pairs. Consider your trading style, the length of your trades, and how much time you need to put into each trade. Then, during a weekend when there are no trades to distract you, come up with a plan of action that works best for YOU.

And no matter what pairs you trade, make sure you know how much position size of that pair you should be trading on any given trade. Write down which pairs you are allowed to trade in your trading plan—your written document that outlines how you trade. Disclaimer: Nothing in this article is personal investment advice, or advice to buy or sell anything. Trading is risky and can result in substantial losses, even more than deposited if using leverage.

Cory is a professional trader since In between trading stocks and forex he consults for a number of prominent financial websites and enjoys an active lifestyle. He runs TradeThatSwing and coaches individual clients. Keep triangle balanced for risk control and if one leg is unbalanced use stop loss only on THAT LEG.

Thank you. I have never traded that way, so not sure if it is good or not. I primarily day trade the EURUSD. Save my name, email, and website in this browser for the next time I comment. Notify me of follow-up comments by email. Notify me of new posts by email. Sign Up for My Free Weekly Trading Tips Newsletter. Which Forex Pairs to Trade — Day Trading and Swing Trading Here is a list of forex pairs to consider trading, based on your experience level.

Which Forex Pairs to Trade — Day Trading and Swing Trading April 25, Posted by Cory Mitchell, CMT Forex Day Trading Lessons , Forex Swing Trading Lessons 2 Comments. Main Takeaway Points If using a 1-minute chart for day trading, focus on trading one pair well. The EURUSD is recommended.

The EURUSD Day Trading Course covers how to trade this pair in two hours or less a day although you could trade longer if you wish. For day traders trading the 5-minute chart or higher timeframes, or that use partially or fully automated strategies, trading more than one pair is acceptable. But keep it manageable. Swing traders, consider looking through multiple pairs. by Andrew Jun 22, Weekly Trading Updates 0 comments.

Podcast: Play in new window Download. Subscribe: Apple Podcasts Google Podcasts Spotify Android iHeartRadio Stitcher Blubrry TuneIn RSS. Should you trade correlated Forex pairs?

Hey traders, Andrew Mitchem here, at the Forex Trading Coach with video and podcast number Trading correlated pairs and the TFTC Pattern Trader results update.

And I want to talk all about Forex pairs and trading correlated pairs and also, I want to give you an update on the autopilot feature for the trade results this week for our fantastic software called Pattern Trader. Can you help me out on a future video and podcast? You would notice that a lot of currency pairs are quite highly correlated.

For example, the Euro and the Swiss Franc are highly correlated. dollar related and the Euro and the Franc are related. You get other correlations acting like the Euro and the Pound, both are very similar markets, same time zone, et cetera. They tend to move quite similar, tend to.

You get other correlations such as the commodity currencies. So in other words, the New Zealand dollar, the Australian dollar and the Canadian dollar, they all tend to move in correlation most of the time.

And of course you get exceptions to that. Now, of course, there are exceptions again, you have to trade what you see and you have to have a trade plan in place. So if your plan is to take those two trades, regardless, then you do so. So what you need to do as a trader is you need to do one of few things.

But also you then need to look at your strategy and how these are likely to play out. Where are you going to put your stop losses? Where are your profit targets? Where are they bouncing? What part of the chart are they in?

Forex is a market, where the currencies are traded. Currencies are traded in pairs , so a Forex pair is a ratio of one currency's value to another. To buy one currency, traders need to sell another. The exchange rate represents the amount of quote currency needed to buy one unit of the base currency.

The base currency is as a rule more valuable and placed first, and quote currency is placed second. Currencies depend on their national economics and world situation. So currency fluctuations are influenced by several factors.

The first one is the interest rate, when the central bank raises the interest rate, the capital return is getting higher, so the country is more attractive to new investments because depositors can potentially earn more. It makes the currency stronger. The source's prices have a great impact on lots of national economies. For example ores, coal and oil occupy a significant part of the export structures of Canada, Australia, and Saudi Arabia.

So when the prices are rising, it means that the currency value is going to rise too. Tracking information about the condition of source prices can help traders do fundamental analysis. Inflation, when the country supplies more currency than the product you can buy for it, it signals about currency surplus.

The currency becomes less valuable. For example, imagine if diamonds were available for everyone, it would be less costly, the same thing with the currency. Economic performance. The releases of measurements of national economics metrics can strongly influence the exchange rate.

The currency is based on the national economy, the stronger economy, the stronger currency. As it was said, traders need to sell one currency to buy another one.

Traders make money from currency value fluctuations. They buy it when it starts to rise and sell it when it starts to fall, so they gain a difference. There is a relation between currency pairs, we can say that historically some currency pairs move in one direction and some in the opposite. Correlation can help traders to predict currency pairs further and diversify risks.

The general concept of liquidity refers to the speed at which a particular asset can be turned into cash. For example, money on the card has more liquidity than real estate. Simply put, liquidity in the Forex is the ability to easily buy and sell a currency pair.

Liquidity can vary depending on several factors, like time of trading the pairs with JPY have higher liquidity while Asian Forex market working hours and lower in European. Major Forex pairs usually are more liquid because they are just more popular to trade. Because the low liquidity means that the number of buyers is lower than sellers.

The importance of choosing high liquid currency pairs is an opportunity to close deals without difficulties and not hold an unprofitable position. Volatility is a range of price changes during a certain period. The advantage of trading volatile currency pairs is more potential gain. As traders get profit from price fluctuations.

Traders can use lower leverage but have quite a fast profit from the deal. The disadvantage is the importance of having the experience to trade more volatile pairs in order not to lose money. Since the strategy for trading volatile pairs, it is necessary to check the strategy.

Also, trading volatility supposedly has a bigger spread, but it can be compensated by faster and bigger profit. Predictable currency pairs signify the opportunity of making accurate assumptions about currency pair price movement.

It depends on the measure of economic transparency, the availability of information about economic, political, and social situations, and the currency movement in the past. The currency pairs that include the United States dollar are called major. Usually, major currency pairs are the most attractive for traders, because of their higher liquidity.

The most traded currency in the world is the U. Currency rates of major pairs are affected by interest rates set up by central banks, the rising interest rates make countries more attractive for investment and strengthen the currency. Also, rates are influenced by economical and political data. Political releases that announce impressive changes affect the rate. The information about elections or international treaties can change the rate in a minute. As was mentioned major currency pairs are more traded, so have higher liquidity.

Also, these pairs are considered to be more predictable, because there is more reliable information about major currency pairs so it is easier to do accurate forecasts.

But also the abundance of information can lead to difficulties in the analysis since it will take a very long time. Trading major pairs are supposed to have much lower spreads. According to their liquidity, major pairs are less volatile, they are not characterized by sharp falls and ups. So, major pairs are a good way to start on Forex, because of the above-listed factors. Forex is a round-the-clock market, there are three main sessions, North American New York , European London , and Asian Tokyo.

Also one of the quite popular sessions is the Australian Sydney. The working hours for the Asian session are from 11 p. GMT, currencies such as the Japanese yen and South Korean won show higher volatility because there is the most news about their economies during the Asian session. The working hours of the London session are 7 a. The most volatile pairs during the London session are those which include Great Britain pound, Swiss franc, and euro. The open hours of the New York session are from noon to 8 p.

The most volatile pairs during that session, pairs include the Mexican peso, Canadian, and United States dollar. Australian session open hours are from p. to a. The most volatile pairs include Australian and New Zealand dollars. Trading session overlap is a situation when a few sessions are working at the same time. For example, London and New York sessions are working together from noon to 4 p. This time is considered to be the most volatile with the biggest volume of trading, so it offers great opportunities.

The most traded pairs during the Asian session are those which include the Australian dollar and the Japanese yen. They have lower spreads and higher liquidity at the time of that session. Of course, during the European session, the most liquid and traded pairs with the lowest spreads are pairs with the euro and Great Britain pound. It is better to choose pairs that include the United States dollar, European currencies, and the Japanese yen.

The worst time to trade is considered to be when only New Zealand and Australia sessions are working, because of low liquidity and high spreads. The best trading time is supposed to be during the overlap of European and North American sessions.

There is the biggest trading volume and the lowest spreads on the most popular pairs. Releases of economic performance or political events have a great impact on the exchange rate, it can signify future changes in economic decisions, like changes in interest rate, economic policy in general, or market expectations.

It is always recommended to start with a pair of the national economies you are most familiar with. This will help you make more accurate predictions about her movements. Also, beginners can simply learn to trade on one pair and not spread their attention on several at the same time.

It is important to choose a platform with a good reputation because the platform offers you ways to fund and withdraw money from your account. It is important that these are safe and convenient ways. Also, the interface should be convenient so that you do not face difficulties during trading.

The platform should offer educational materials and analytics. Therefore, the success of the trailer largely depends on the chosen platform. For the first time, it is better to choose one or a few currency pairs to understand the mechanism of the market. Choosing the right time and pairs for trading can help you to raise your income and reduce costs, read and learn more about economics of chosen pairs, it can help to conduct a fundamental analisis and gain more money.

by JustMarkets , Please enable JavaScript in your browser. What Forex pairs to trade during each session? Open Real account Open Demo account Download MT5 platform Download MT4 platform. Last Articles.

Best Forex learning platforms. When you have some savings, it is useful to find an effective way to increase them. How to choose your trading style? What are the trading styles? In order to answer this question, it should be noted that there are active trading and passive investing. Netting and hedging? What is the difference? The vast majority of traders, not only beginners but also more experienced ones, do not know the difference between these order execution systems.

How to Buy and Sell Cryptocurrency.

This typically means the trader is better off focusing on one, and no more than several, currency pairs. Similarly, most of the grid trading strategies would call for doubling the order volume at pre-determined intervals. Also, trading volatility supposedly has a bigger spread, but it can be compensated by faster and bigger profit. We also use third-party cookies that help us analyze and understand how you use this website. Choosing the right time and pairs for trading can help you to raise your income and reduce costs, read and learn more about economics of chosen pairs, it can help to conduct a fundamental analisis and gain more money.

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