How to Choose the Best Forex Pairs to Trade?
Many forex pairs to trade in the currency market. The famous currency pairs are EURUSD, GBPUSD and USDJPY. Other forex traders are looking for low volatile forex pairs. While many traders are looking for the best forex pairs that will meet their criteria or trading strategy. When I was started trading forex, I trade almost 5 to 10 pairs and of course I can’t even focused on the good ones – the best forex pairs to trades.
In this article let me guide you in choosing the best forex pairs to trade whether you are trading in Asian Session, New York, Sydney or even trading during London Session. Professional traders are looking for the active forex pairs during the session. Example, New York Session; the active pairs might be EURUSD.
The best forex pairs to trade in 2018 will be different for the best forex pairs to trade in 2019, 2020, 2021 and beyond because the forex market is changing. I am living in the Philippines and of course if I want to trade at night, the best currency pairs to trade at night is I should find out which pairs are active that hours. In the Philippines, active pairs to trade during 9 pm to 5 am is EURUSD.
What about the best currency pairs to trade during London session? Of course, the forex pairs are GBPUSD and EURGBP.
There are no “most predictable currency pairs”, because we don’t know what will happen in the market. That is why we will use fundamental analysis and technical analysis. Fundamental analysis are based on news and information while technical analysis are based on indicators.
How to Choose the Best Forex Pairs to Trade?
Step 1. Know Your Trading Style
A day trader will make profit in the same day. While swing trader will wait for next “swings”, ups and downs. And if you are a trend follower, all you need is to analyze the trend and trade with the trend. There are many forex pairs to trade that good for swing traders, day traders and trend following traders.
Step 2. Find Active Pairs in Your Trading Schedule
If you want to trade at night, you have to find out the best currency pairs to trade at night. Just convert your time zone during the each forex marekt session; New York, London, Tokyo (Asia) and Sydney.
- New York – here you can have an idea on when can you trade forex during new York Session and which pairs to trade.
Step 3. Read, Read, Read and Analyze Market Information
Of course, you need to find out which pairs to trade. To have an idea, you need to read market information. Some professional traders will not trade if there are red news related to specific forex pairs. While some traders love to trade during big news.
To find the best currency to trade right now or today and be profitable in your forex trading business, you have to choose at least only 1 pair. Focus on trading 1 pair will give you a laser target trading entry than confusing yourself opening a lot of chart and start mediocre trading entries.
Remember, one quality trade is better than lots of mediocre guessing trades. Hope you liked this post.What about you? As a trader, whcih forex pairs do you think are the best to trade? use the comment box to join the discussion!