A novice trader usually has so many unanswered questions in his head. One of the most common issues is which currency pairs is better for a beginner to start trading with. Even though on the internet you may read some opinions that the choice of a currency pair does not matter, it actually it does. This question will be answered with an exact answer in this article.
Firstly, for a novice trader is not necessary to pay attention to the huge number of currency pairs. Moreover, we believe that you need to start trading with only one pair. We know that many of you would disagree, but we can prove our point of view. How many times we’ve seen newcomers opening charts of almost all pairs, CFDs, stocks, etc and their trading terminal starts looking as a Christmas tree. Only to scroll through and view the charts, the novice trader takes a huge amount of time. Sometimes one pair can take days or even weeks to show a good signal, and when you are using too many currency pairs, something should definitely come up for trading.
Yes, however, here lies the root of the main problem. We came to the forex market, not to trade every possible pair but we have come here to earn. If you just want to trade, then, of course you can do so. But if your goal is different and if you are not interested in the process but in the result, then remove all the excess charts and focus on a single pair. You will have a huge amount of time to do some useful work. You will have time to learn more about the technical and fundamental analysis. There will be time to test a strategy and advisers, and most importantly you will not miss a great signal and opportunity to open a profitable trade.
Secondly, you will be able to thoroughly examine this currency pair. After all, you spend time which you have decided to dedicate to forex. Observing the behavior of this one pair in how it responds to news,how volatile it is during the day, or whether there are sharp fluctuations in the price, will help you a lot. After some time, all this information will improve your trading. You’re not just going to trade one currency pair, you will be completely in tune with it. You will have a subconscious feel if something is wrong, and should abstain from the trade. After you have thoroughly studied one pair, there is nothing to prevent you from adding the next, then the next and so on.
Now let’s talk about choosing the right currency pair. Which pair is better to start trading with? We must say that the opinion of professionals on this topic sufficiently solid. It is best to start trading with the majors, and even better with the pair EUR / USD. Price movement of majors is not so volatile, and is more predictable. Most trading activity on these pairs is held during the day. There are rarely sharp fluctuations in prices, which can knock out novice traders from the market. EUR / USD currency pair is generally ideal. We are all aware of the fundamental factors that affect the price of this pair and we can say it is active all day long. The average price interval is 50 to 100 pips daily and therefore it is good for both short and long-term trading.