How to Decide Currencies Pairs in Forex Trading
Many people think that analyzing the forex trading is a complicated thing and full of all the scary math formulas. Some people are willing to pay millions of dollars to follow courses which studies capital markets analysis technically with calculation of complex charts.
In fact if we think with logical, clear and calm, then it would seem an easy indicator to run a forex trading strategy. To be successful in Forex trading there is a basic principle which should be held. Remember that when you do trading, you must build the mindset as a trader, bought at cheap price and then sell at a high price is the number one and the most obligatory rule.
Based on experience, or role in the trading session was very influential on the final result whether we will get a profit or loss. At first glance the price generally goes flat on all morning until the afternoon.
The European market session usually starts rising and formed the summit and on the American market session. After observing the phenomenon then we should be trading at the time the American market sessions only. The first step is to calculate the range price of high-low in each currency on that day. There are 4 kinds of commonly traded currencies are:
You need to understand that there will be some circumstances where the value of the currency does not match the predictions. There are times when one of them survived while other currencies follow a pattern that matches the predictions. If so then there is a possibility one of the currency’s movements had been held its lowest or highest point of daily range and has already approached the daily average value.
There is no specific rule that says that one of the currency pairs traded are more easily and have the same opportunities. It is just good if we align with the strength of our margin.
The movement of the currency pairs Euro-Usd and Usd-Jpy are more stable. This is of course safer to be played with our small margin of capital compared to other currency pairs.
The primary key in the forex trading is often practice. You can more knowledge for free via the internet, browsing in Google, or talking with colleagues. The trick above is also not promising profit for sure but at least by applying that you are already on the right path and not doing trading blindly. You have got the basics in making a decision.