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Author Topic: Choosing correct combination of currency pairs  (Read 40167 times)

Offline Explorer

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Choosing correct combination of currency pairs
« 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

Offline nzsolt85

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Re: Choosing correct combination of currency pairs
« Reply #1 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)

Offline Explorer

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Re: Choosing correct combination of currency pairs
« Reply #2 on: February 07, 2012, 09:29:11 AM »
Hi nzsolt85,

Thanks for the advice and link.

GL trading

Offline nzsolt85

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Re: Choosing correct combination of currency pairs
« Reply #3 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)

Offline hybrid

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Re: Choosing correct combination of currency pairs
« Reply #4 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.

Offline resistance

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Re: Choosing correct combination of currency pairs
« Reply #5 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.

Offline Forexrider

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Re: Choosing correct combination of currency pairs
« Reply #6 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.

Offline Forex Verified

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Re: Choosing correct combination of currency pairs
« Reply #7 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.
If it's not verified, don't buy it - www.forexverified.com

Offline uzakon

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Re: Choosing correct combination of currency pairs
« Reply #8 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, not on currency.

Offline bruce_knee

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Re: Choosing correct combination of currency pairs
« Reply #9 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, 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

Offline iMusingKiMi

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Re: Choosing correct combination of currency pairs
« Reply #10 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.

Offline Rocky Ward

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Re: Choosing correct combination of currency pairs
« Reply #11 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.

Offline Forex Verified

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Re: Choosing correct combination of currency pairs
« Reply #12 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, 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.
If it's not verified, don't buy it - www.forexverified.com

Offline iMusingKiMi

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Re: Choosing correct combination of currency pairs
« Reply #13 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, 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.

Offline brave

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Re: Choosing correct combination of currency pairs
« Reply #14 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.

 

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