Currency pair for a beginner
A beginner who decides to trade Forex first of all faces the question of choosing a trading asset; usually brokers
provide about several dozen currency pairs, so which one should you choose for profitable trading?
It would seem to be the most popular, but the answer is not always so obvious and many experts advise not to approach this matter so formally.
Yes, EUR/USD has the most favorable trading conditions; in addition, a huge number of tools such as advisors and indicators have been written for this currency pair, but along with its advantages, it also has certain disadvantages.
First of all, news on the euro comes out during business hours in Moscow, which causes sharp fluctuations in the exchange rate while you are working on Forex; in addition, the asset is influenced by a lot of minor factors, so it is difficult to objectively assess the price behavior.
Simpler currency pairs for a beginner can be:
USD/CHF - a stable or steadily growing exchange rate of the Swiss franc, which can significantly simplify trading and make it more effective.
Especially if there is a weakening of the US dollar, then sales transactions can be as profitable as possible. AUD/USD is often called a commodity pair, since the Australian dollar is closely linked to the price of gold and agricultural commodities.
USD/CAD is an interesting trading tool, since both currencies are closely tied to the price of oil, only the Canadian is directly linked, and the US dollar is inversely linked, that is, a rise or fall in the price of oil gives a good movement in USD/CAD.
AUD/NZD is easy to analyze, and the size of the spread is still not high; after strong news, the trend maintains its direction for quite a long time.
EUR/USD - for training with small amounts, you can take this currency pair; most authors use it to describe various strategies and tactics, and having understood how these methods work, you can move on to other trading tools.
But in general, if you are as objective as possible when choosing a currency pair for a beginner, it is best to look for an instrument with an extremely low or high price, that is, a pair for which the price is at its minimum or maximum, this is what opens up simply limitless opportunities for making money.
For example, GBPUSD is currently at its four-year low, positive news from the UK or negative news from the US can easily cause a fairly strong upward trend .