How to Choose the Best Forex Pairs for Trading

Podcast:

Find out more about Blueberry Markets – Click Here

Find out more about my Online Video Forex Course

Book a Call with Andrew or one of his team now

Click Here to Watch Prop Firm Masterclass

#581: How to Choose the Best Forex Pairs for Trading

In this video:

00:22 – Forex pairs – what to choose?

01:37 – The best pair to trade is ……..

02:00 – Assessing Strength and Weakness.

03:13 – Fine tuning to pick the best setup available.

04:25 - 17 minutes Masterclass.

04:33 – Blueberry Markets as a Forex Broker offering a 50% credit bonus.

05:05 – Book a Call and speak with us.

As a forex trader, what are the best forex pairs that you can look at trading? Let's talk about that a more. Right now.

Hey traders, Andrew here at The Forex Trading Coach with video and podcast number 581.

Forex pairs – what to choose?

What to talk about forex pairs as a trader you have a lot of pairs available and a lot of people, especially when they start. I get very confused with the different currency pairs. You standard main pairs you get you exotics, you get your minors, and more and more pairs now are available to us as traders.

So really the question is what is the best pair to trade? Well, a lot of people think you need to trade just the euro US dollar or just the US yen because their spreads are tight. And in the case of the EUR/USD, it tends to have the most movement or not some movement, but the most volume traded on it, per day in general.

And then other people look at pairs like the GBP/JPY because it moves a lot and they think they need to trade that. And then people look at pairs like the EUR/CHF, which doesn't move a lot, and they think they can't trade it. So that becomes a lot of confusion out there. Do you need, like the most liquid pair, the tighter spread. Do you need one that moves a lot? Do you need one that doesn't move at all?

The best pair to trade is ……..

And so my answer is it depends. And I know I say that to a few things because it's true. I don't just trade the NZD/USD or against the JPY because I live in New Zealand. You shouldn't do that either.

You shouldn't have an emotional tie to a currency pair. What you should do is look through all the currency pairs. And the reason I say that there's a few reasons.

Assessing Strength and Weakness. 

Number one, you can assess strength and weakness very well. If you do that. As an example, rather than just looking at the EUR/USD, why don't you look at also the EUR/JPY, the EUR/GBP, the EUR/AUD, EUR/NZD, EUR/CAD and make a full assessment.

So if for example you can do that and you see let's say all of those pairs were moving up, that's going to give you a fairly good indication that the Euro is very, very strong. But if you didn't do that and you looked at just the EUR/USD and is moving up, you don't know whether the strength in the Euro or whether that movement of the EUR/USD heading up is, is just because the US is extremely weak right now.

So you might be taking a by trade on the EUR/USD thinking the strength in the Euro, whereas it may just be the US weakness that's pushing it up. And the Euro against other pairs may actually be dropping. So you're not doing yourself any favors there. So to assess multiple currency pairs is going to be your best option.

Fine tuning to pick the best setup available.

The other thing that gives you is let's say you see really good buy trades on the EUR/USD, the EUR/CAD, the EUR/AUD, the EUR/NZD, the EUR/CHF. Let's say they're all showing some fairly good setups at the same time. And by the way, I only trade on the close of a candle. Let's say you see that what you really then should do is fine tune those setups and maybe pick 1 or 2 of the very best ones setups that give you a high probability chance of a success for trade setups that have round numbers in their favor.

On a buy trade that doesn't need to break a previous swing hig...