Which currency pairs are best for beginner traders?

JoshWinter
JoshWinter

New trader? New to forex? Looking for more ideas to get your never ending journey started? If this is you at this moment in time than look no further.

In my opinion the best currency pair or currency cross to start with would have to be one of the Majors. The majors are made up of the 4 major global currencies. They are listed below.

EUR/USD: The euro and the U.S. dollar
USD/JPY: The U.S. dollar and the Japanese yen
GBP/USD: The British pound sterling and the U.S. dollar
USD/CHF: The U.S. dollar and the Swiss franc

Usually the US Majors are the least volatile and most smooth moving currencies. They are also the most liquid currencies as well. By liquid I mean the most volume is traded in these pairs and they also have the tightest bid/ask spreads as well. Any of these would be fine to start with but the king of all forex is definitely the EUR/USD. This pair reigns supreme from a liquidity stand point. It is the most popular cross traded bar none. So when looking to get your feet wet in forex trading look to start with one of the pairs above. Some of them move more than others so see which one you like the most and focus on that one pair or cross.

Regardless of the pair you trade or start with just be sure to ALWAYS manage risk and I would advise to start with 0.01 size trades or 1,000 units. That equates to about .10 cents a pip. So each tick up or down would mean your profit or loss would fluctuate by .10 cents.

Lastly, your goal as a new trader is not to make money, instead it is to focus on the process and emotional side and collect and build data. I always recommend tracking and journaling your trades, thoughts, and emotions. So you can learn about yourself and your trading. Remember trading is the most difficult profession in the world so to think it is something you can learn in a few weeks or do from your mobile phone is illogical and not reality. Trading can't be taught, but it can be learned.

Any questions please ask away, there is no such thing as a dumb or silly question!

Always a Student. B)
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