Thoughts on choose what to trade for newbie?
- Thread starter abi211gail
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I agree, as a beginner it is best to stick to one pair first and learn as much as possible about it.
I recommend that you stick with maximum 2/3 pairs. Get well acquainted with them and trade with caution. It is best to choose major pairs at the beginning since they usually come with lucrative spread and decent liquidity. I am wishing you all the very best.
That's a good point. Additionally, if you venture outside of the realm of major pairs, especially into exotic pairs, volatility tends to increase and liquidity decrease, which makes trading more challenging to begin with.
Beginners should start with the majors and stick to the most often traded currency pairing. I believe that starting with the EUR/USD is the ideal pick because it is the most liquid and volatile currency pair in the forex. The most significant point, in my opinion, is that you can get a wealth of information regarding trading various currency pairings. On the EUR/USD pair, I believe that 80% of all trading techniques are outlined.
However, in my opinion, the top three currency pairs for beginners to trade are:
However, in my opinion, the top three currency pairs for beginners to trade are:
- The euro and US dollar: EUR/USD.
- The US dollar and Japanese yen: USD/JPY.
- The British pound sterling and US dollar: GBP/USD.
Do you mean most liquid and least volatile? Otherwise, I agree, EURUSD is a good first choice for a beginner trader.
There’s an endless list of investments for beginners to choose from. However, I think it's best to start with trading Forex. Investing in forex is a great option for beginners since the platform is easy to understand and offers advanced trading tools to predict the market, enabling us to enter and exit the market and save our capital accordingly.
Forex is definitely a great option, but it isn’t easy. Anyone who is new to this field would find it quite challenging. In-depth studies and regular practice is paramount for a newbie to excel in this field.
I think a rookie should focus on a single currency pair, preferably the most liquid and least volatile. Once he/she gets to know about the movements of the pair and the market trends, it will become easier to trade other pairs as well. But, one should carry out both fundamental and technical analysis before trading any currency pair.
It's advisable for newbies to stick to the majors when picking pairs to trade. Focus on just one pair for a while and learn TA.
To summarise the entire beginner's phase of beginning to trade Forex, we must look at exactly ten major steps that a beginner must take.
- Learning the fundamentals (currency pairs)
- Learn about the software (MT4, MT5)
- Demo accounts are used to learn.
- Locate a dependable service provider.
- Utilize the resources provided by the service provider, such as tools and guides.
- Test out the provider's customer service.
- Learn about strategies and put them to the test.
- Make a plan for reading the news and conducting independent research.
- Keep a weekly record of your progress and begin making real trades.
the most important among them is to be able to understand about the market fundamentals.
EUR/USD is the most preferable trade among newcomers. Why? It is easy to trade and analyse. However, you have plenty of other options to consider. But as a beginner, it is better to stick with the easier ones. Generally, major pairs are good to start with because they have high liquidity compared to other pairs. Besides EUR/USD, you can trade with other major pairs, such as USD/JPY and GBP/USD.
If you do google research, you will find top pairs. Test all of them and spend some time doing analysis. Shortlist the one which you like and add it to your portfolio.
Exotic pairs are the most profitable but also the riskiest pairs. So, a beginner would be good to start with a major or a minor that is much more stable and less expensive to trade.
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