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The Donna Forex Lounge => Archive => Topic started by: Explorer on February 06, 2012, 07:46:09 PM

Title: Choosing correct combination of currency pairs
Post by: Explorer on February 06, 2012, 07:46:09 PM
Hi Donna,

I am a part-time trader and have been focusing my trading solely on Eurusd.  In order to open up more trading opportunities, I am thinking of expanding my options to other currency pairs.  However, I am not sure how I should go about in deciding which other currency pair to choose.  I have previously traded other pairs such as USDJPy, AUDUSD, GBPUSD, etc.  At times, I realized I got myself into such a situation whereby when one of my currency pairs go in my favour, the other will definitely go against me. So I end up going nowhere as the more I made in one pair, the more I lose in the other.  Also EURUSD and GBDUSD seems to be quite similar in their price movement so if one pair does not have any trading opportunity, the other pair probably doesn't too (Not sure if this perception is correct but at least this was what I felt it was).

Could you advise on what are the combination of currency pairs that I should be focusing on so as not to have conflicting interest?

Many thanks
Explorer
Title: Re: Choosing correct combination of currency pairs
Post by: nzsolt85 on February 06, 2012, 09:08:01 PM
Hi Donna,

I am a part-time trader and have been focusing my trading solely on Eurusd.  In order to open up more trading opportunities, I am thinking of expanding my options to other currency pairs.  However, I am not sure how I should go about in deciding which other currency pair to choose.  I have previously traded other pairs such as USDJPy, AUDUSD, GBPUSD, etc.  At times, I realized I got myself into such a situation whereby when one of my currency pairs go in my favour, the other will definitely go against me. So I end up going nowhere as the more I made in one pair, the more I lose in the other.  Also EURUSD and GBDUSD seems to be quite similar in their price movement so if one pair does not have any trading opportunity, the other pair probably doesn't too (Not sure if this perception is correct but at least this was what I felt it was).

Could you advise on what are the combination of currency pairs that I should be focusing on so as not to have conflicting interest?

Many thanks
Explorer

Hi Explorer,

the answear for you its easy, but its subjective as well.. the easy to identif the correlation betw. the pairs and to create a traded pair portfolio.. when im trading, im always taking a look, at the correlation table,to avvoid highly neg/positive correlated pairs.. i dont want to hedge with my trading style..

With the link, you can easily check the correlation talbe, that its updated.. :
http://www.forexticket.co.uk/en/tools/01-01-correlation

About the pairs.. that its totaly your decision, you need to study a pair for a long period, to be confident with the retracement level movements ie.

Im trading normaly the EUR, Cable, JPY.. and somethimes pairs, with predefined risk/news analiz.

Gl with the trades! 8)
Title: Re: Choosing correct combination of currency pairs
Post by: Explorer on February 07, 2012, 09:29:11 AM
Hi nzsolt85,

Thanks for the advice and link.

GL trading
Title: Re: Choosing correct combination of currency pairs
Post by: nzsolt85 on February 07, 2012, 09:49:06 AM
Hi nzsolt85,

Thanks for the advice and link.

GL trading

More then wellcome buddy, if you have more questions, just say.. we are here to help each other.. we are trading the same market, the same env. so if we share the oppinions, we are comming out with positive results...

Gl with the trades! 8)
Title: Re: Choosing correct combination of currency pairs
Post by: hybrid on January 26, 2016, 06:13:42 AM
Almost all brokers offer good combination of currency pairs. Specially major currency pairs are same for trading .There is less or  more difference between spread and market working.You have to chose among them the pair you feel easy to trade.
Title: Re: Choosing correct combination of currency pairs
Post by: resistance on January 26, 2016, 02:13:57 PM
Sometime I am look on gbpusd and gbpjpy which sometime also have similar movement like as today, but average movement on gbpjpy more hgher than gbpusd, tradng with corelation between pair sometime also fail I think beause not always pair will move same like as before.
Title: Re: Choosing correct combination of currency pairs
Post by: Forexrider on January 27, 2016, 11:22:15 AM
Not really sure if these are the correct combination for trading but i have been trading on GBP/USD, EUR/USD, GBP/JPY and EUR/JPY for almost 6 years now and this has been quite profitable for me.
Title: Re: Choosing correct combination of currency pairs
Post by: Forex Verified on January 27, 2016, 05:01:21 PM
Quote from: Explorer link=msg=158466 date=1328557569

Hi Donna,

I am a part-time trader and have been focusing my trading solely on Eurusd.  In order to open up more trading opportunities, I am thinking of expanding my options to other currency pairs.  However, I am not sure how I should go about in deciding which other currency pair to choose.  I have previously traded other pairs such as USDJPy, AUDUSD, GBPUSD, etc.  At times, I realized I got myself into such a situation whereby when one of my currency pairs go in my favour, the other will definitely go against me. So I end up going nowhere as the more I made in one pair, the more I lose in the other.  Also EURUSD and GBDUSD seems to be quite similar in their price movement so if one pair does not have any trading opportunity, the other pair probably doesn't too (Not sure if this perception is correct but at least this was what I felt it was).

Could you advise on what are the combination of currency pairs that I should be focusing on so as not to have conflicting interest?

Many thanks
Explorer


Focus on EUR/USD. GBP/USD is a tricky pair.
Title: Re: Choosing correct combination of currency pairs
Post by: uzakon on January 29, 2016, 06:45:56 PM
Why don't you trade oil and commodities now? This is the right moment for making money on these instruments (https://freshforex.com/traders/trading/specification-CFD/), not on currency.
Title: Re: Choosing correct combination of currency pairs
Post by: bruce_knee on January 29, 2016, 09:13:02 PM
Quote from: uzakon link=msg=351851 date=1454093156

Why don't you trade oil and commodities now? This is the right moment for making money on these instruments (https://freshforex.com/traders/trading/specification-CFD/), not on currency.
[/quote

I agree with you, they are going down for a few months now and will continue to do so, especially oil that may drop as low as 25-20 due to oversupply worries.
Otherwise, NZDUSD and AUDUSD have similar movements, EURJPY and EURUSD also
Title: Re: Choosing correct combination of currency pairs
Post by: iMusingKiMi on February 02, 2016, 07:14:02 AM
I believe this is the most critical rules in forex. It is just like boxing match, you always want to find a weak opponent.

Sun Tzu taught us thousand years ago, find the strongest against the weakest.
Title: Re: Choosing correct combination of currency pairs
Post by: Rocky Ward on February 02, 2016, 08:39:52 AM
Generally, we the traders choose our trading pair in order to our trading experience. in my trading career, I always like to trade EURUSD which is mainly considered as a bass pair in this market place. And, I am very lucky to select MXTrade trading broker where I can trade at any major pair with only one pip lowest trading spreads.
Title: Re: Choosing correct combination of currency pairs
Post by: Forex Verified on February 02, 2016, 02:02:59 PM
Quote from: uzakon link=msg=351851 date=1454093156

Why don't you trade oil and commodities now? This is the right moment for making money on these instruments (https://freshforex.com/traders/trading/specification-CFD/), not on currency.


Commodities are tricky. If it happens that you hold some of those instruments for a longer period (ex. you bought oil low and you know at some point it will go up, but instead it goes lower mid-term), your positions will get closed when the contracts expire. If you happen to hold losses, bye bye.
Title: Re: Choosing correct combination of currency pairs
Post by: iMusingKiMi on February 03, 2016, 07:03:15 AM
Quote from: Forex Verified link=msg=352018 date=1454421779

Quote from: uzakon link=msg=351851 date=1454093156

Why don't you trade oil and commodities now? This is the right moment for making money on these instruments (https://freshforex.com/traders/trading/specification-CFD/), not on currency.


Commodities are tricky. If it happens that you hold some of those instruments for a longer period (ex. you bought oil low and you know at some point it will go up, but instead it goes lower mid-term), your positions will get closed when the contracts expire. If you happen to hold losses, bye bye.


You can trade commodities but with extremely low leverage.
Title: Re: Choosing correct combination of currency pairs
Post by: brave on February 06, 2016, 09:19:21 AM
Being a part time trader you should use the EUR/USD and USD/JPY as both currency pair are quite useful and trading with these currency pair can be fruitful as you can earn much more from this business, you should put the order on EUR/USD sell and USD/JPY buy and if you will set the order on EUR/USD buy then should order on USD/JPY sell, using this currency pair combination you can become the rich sharply.
Title: Re: Choosing correct combination of currency pairs
Post by: indicator on February 08, 2016, 06:20:33 AM
This method mostly work near news time when after the release of a high impact news you can determine whether the corresponding currency has become strong or weak and then trade that currency with other weak/strong currency.
Title: Re: Choosing correct combination of currency pairs
Post by: Forex Verified on February 08, 2016, 02:25:32 PM
Quote from: iMusingKiMi link=msg=352056 date=1454482995

Quote from: Forex Verified link=msg=352018 date=1454421779

Quote from: uzakon link=msg=351851 date=1454093156

Why don't you trade oil and commodities now? This is the right moment for making money on these instruments (https://freshforex.com/traders/trading/specification-CFD/), not on currency.


Commodities are tricky. If it happens that you hold some of those instruments for a longer period (ex. you bought oil low and you know at some point it will go up, but instead it goes lower mid-term), your positions will get closed when the contracts expire. If you happen to hold losses, bye bye.


You can trade commodities but with extremely low leverage.


You can trade everything with low leverage, that's not the point. The point is to trade instruments that give higher chances of success.
Title: Re: Choosing correct combination of currency pairs
Post by: hybrid on August 16, 2016, 08:32:47 PM
Having good capital trader can use low leverage in trading . I must say trader should have ability to choose right leverage , lot and currency pair that will make chance to bring profit him. He has to see what pair is best at this time for trading.
Title: Re: Choosing correct combination of currency pairs
Post by: Confrontation Girl on August 17, 2016, 06:57:14 AM
I am new comer and beginner of Forex trading business. Right now i am practicing in my demo account. My favorite pair of currency is Eur/USD and Eur/Gbp.
Title: Re: Choosing correct combination of currency pairs
Post by: resistance on August 17, 2016, 01:16:47 PM
Most newbie seems they like trade on eurusd, many trader also suggested this pair which having good average movement daily and also low spread usually, if trade with eurgbp might this also having corelation because there are same element it's euro
Title: Re: Choosing correct combination of currency pairs
Post by: Forex Verified on August 17, 2016, 03:04:22 PM
Quote from: resistance link=msg=357175 date=1471436207

Most newbie seems they like trade on eurusd, many trader also suggested this pair which having good average movement daily and also low spread usually, if trade with eurgbp might this also having corelation because there are same element it's euro


It's not the point whether someone trading EUR/USD is "newbie" (awful term) or a pro; everyone trades pairs that suit their trading strategies and objectives.
Title: Re: Choosing correct combination of currency pairs
Post by: hybrid on September 12, 2016, 03:06:13 AM
Yes no matter which pair is trades main thing is that how good he is doing on it. If you are not aware of any pair mood do not try it direct on real accounts first do trading with it on demo for several days to know how trading with it will be done actually.
Title: Re: Choosing correct combination of currency pairs
Post by: iMusingKiMi on September 19, 2016, 10:34:51 AM
Correlation is one of the most important to know and understand.
Title: Re: Choosing correct combination of currency pairs
Post by: pipdf on September 26, 2016, 04:25:26 PM
Quote from: uzakon link=msg=351851 date=1454093156

Why don't you trade oil and commodities now? This is the right moment for making money on these instruments (https://freshforex.com/traders/trading/specification-CFD/), not on currency.

I trade Gas and Brent with FreshForex. FresForex has cuts spread on these energies with the gass having spreads of 0.007 and Brent 0.09
Title: Re: Choosing correct combination of currency pairs
Post by: drunkfx on September 27, 2016, 01:04:34 PM
Quote from: pipdf link=msg=357892 date=1474903526

Quote from: uzakon link=msg=351851 date=1454093156

Why don't you trade oil and commodities now? This is the right moment for making money on these instruments (https://freshforex.com/traders/trading/specification-CFD/), not on currency.

I trade Gas and Brent with FreshForex. FresForex has cuts spread on these energies with the gass having spreads of 0.007 and Brent 0.09


Wow I trade same instruments with Hotforex but spreads are lower here. What trading approach do you use to trade them?
Title: Re: Choosing correct combination of currency pairs
Post by: brave on October 05, 2016, 05:39:07 PM

You are focusing on good currency pairs i.e. EUR/USD, I also does like to do with this currency pair and most of the people attached with this currency pair. You should continue your trade with this currency pair, it gives the good reward.
Title: Re: Choosing correct combination of currency pairs
Post by: brave on October 05, 2016, 05:41:18 PM

You are focusing on good currency pairs i.e. EUR/USD, I also does like to do with this currency pair and most of the people attached with this currency pair. You should continue your trade with this currency pair, it gives the good reward.
Title: Re: Choosing correct combination of currency pairs
Post by: Liberty on October 09, 2016, 08:26:08 PM
My favourite pair is GBPUSD because there are a lot of news from this usa and we can earn
Title: Re: Choosing correct combination of currency pairs
Post by: iMusingKiMi on October 10, 2016, 07:35:04 AM
Quote from: Liberty link=msg=358123 date=1476041168

My favourite pair is GBPUSD because there are a lot of news from this usa and we can earn


GBP/USD high correlation with EUR/USD. No doubt many trader love to trade this pair as it create more volatile and noise. Of course it would be great if it goes your way, but it doesn't then might be worst.
Title: Re: Choosing correct combination of currency pairs
Post by: dreamfx on November 11, 2016, 05:48:32 PM
In forex we have to choose the right strategy, currency pair and planning in order to avoid the unexpected losses. Keep in mind that if any person wants to get the profit from forex then he will have to choose the right currency pair and I think EUR/USD is the best currency pair
Title: Re: Choosing correct combination of currency pairs
Post by: Eliza Abrams on November 12, 2016, 10:15:06 AM
Any currency pair can be profitable if one uses a strategy that is appropriate for it. My advice is to look into strategies first and then into the actual currency pairs.
Title: Re: Choosing correct combination of currency pairs
Post by: equityfx on December 11, 2016, 02:10:03 PM

I think the pairs that are pre-made for trading are having good combination of currencies . we cannot change them .What our broker offers for trading we have to trade on it. Almost all brokers had all major currencies for trading.
Title: Choosing correct combination of currency pairs
Post by: Aneniahet on December 11, 2016, 02:57:28 PM
I wish sometimes that there was more room for the more exotic stuff like I have. Thoughts?
Title: Re: Choosing correct combination of currency pairs
Post by: drunkfx on December 12, 2016, 08:56:04 PM
I use USD/RUB, USD/ZAR to trade swap arbitrage with Hotforex, XAUUSD and GBPUSD for 5M scalping. Anybody scalp on gold too?
Title: Re: Choosing correct combination of currency pairs
Post by: Paul.Trafford on December 13, 2016, 08:49:15 AM
I trade mainly Major currency pairs and on news. It is surprising how much money you can make ( or loose ) on news trading with couple of currency pairs. Of course it is a lot of risk, but it is a very good profit if know what you are doing