In forex trading, each trader usually has particularly favorite currency pairs that became his mainstay. This is because before opting to stick with a certain pair, we have to observe all the pairs first. Beside of that, the pair we choose to trade with can help determine our trading schedule.

In forex trading, each trader usually has particularly favourite currency pairs that became his mainstay. There is even a friend of mine who is so in love with a certain pair that he countinuously trade the pair although it has often drag him into margin call. This is because before opting to stick with a certain pair, we have to observe all the pairs first. Beside of that, the pair we choose to trade with can help determine our trading schedule.

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Comfort and Challenges

Just like choosing a spouse; after feeling attracted, we can start by approaching and identifying the currency pair. Currency pair is just like human, each with their own character; so before making commitment with it, we have to understand their character beforehand and consider which pair suits our own trading style and character.

Many traders learned trading by using EUR/USD pair. Somehow it has became nearly compulsory for new traders to do that. It might be because the pair is not so volatile like some other pairs. My mentor often joked that trading the EUR/USD is comfy because we just have to draw a fibo once a year. But, don't be mistaken; although it is relatively calm, but it is a profitable pair. What's more, spread for EUR/USD is usually pretty low.

For traders who want more challenging pair, usually the next one they tried is GBP/USD. The pair is more dynamic than EUR/USD and its spread also comparably low, so many people likes it, most notably scalpers. Scalpers seeks profits from small pips by taking advantage of minor waves or major trend retracements.

The next attractive pair is GBP/JPY. The pair's spread is higher at around 8-9 pips, but its movement is more dynamic; therefore, if we managed to enter the market at the right moment, then the big spread could be recovered in just a few minutes. Even better, if we can identify its higher high and lowest low by entry and exit at the right time, then we can take as much as 200 pips from this pair alone. However, I would like to advise you, before opening order in this pair, you should get to know its characteristics first in order to avoid losses. GBP/JPY high volatility makes it unadvisable for beginner traders, although it will be worth the effort to learn trading the pair once we understand it.

Use your free time to observe currency pairs one by one. Try to monitor its movement in different time frames, scroll the chart to the left to see its historical movements and note when the pair actively moves. Also, take note of currency pair's daily movement ranges. From then on, you will know character and habit of almost each currency pair, and consider the right time to enter the market and order the pair. This is usually closely related to the working hours in the countries where the currency originates from.

 

Currency Pair And Timing

Many traders whined about the time needed to trade forex. It is true that online trading enable traders to trade anywhere anytime, but still, to reach the expected target one often has to purposefully make the necessary time. Some complained that they can only trade outside working hours, and then some complained that news releases often happen near midnight (for Asian traders) and so they are unable to get a good beauty .

So, the question is, do we absolutely have to spend many hours in front of our PC to see the chart while trading? what is the right time to enter the market and make good profit? Well, if those questions are directed at me, I will answer it with that's up to you.

Here is the thing. According to my friends senior traders, it's better to allocate time to trade by considering some factors, including the currency pair we trade with. Basically, match our trading time with market open time in the country where our preferred pair originates. So, let's say we want to trade EUR/USD, then it is better for us to enter the market when European/US market open. This is because the pair's movement will be considerably faster at those times.

Other attractive time to trade is on news releases related to the currencies we trade. This is what will be at the root of the trouble; for Southeast Asian traders, US news releases will come around midnight. Because of that, to follow the news, some people might have to move their rest time to noon and work at night. Still, that is not the only option. After all, we are not necessarily have to trade the news. On the contrary, technical-users often avoid the news. Just match the pair you trade with the time you can spare to trade.

So, how is it? when would you like to trade? From this article, I'm sure you can draw your own conclusion. Each trader can freely coordinate between currency pairs, trading style, and the time we can spare without interefering our obligations. Online forex trading enable us to trade anytime and anywhere, so we too have to adapt it in a way that suit our condition and circumstances. Forex trading should be enjoyable instead of distressing.

 

Other interesting pair to trade is AUD/USD. Just like any other pair, AUD/USD has its own characteristic. What are their characteristic and how to trade them?