The best currency pairs to trade
Q “How many currency pairs do you trade and what are they?”
I only look at the top major currency pairs when I trade Forex.
Main reasons are.
1. They are the most liquid and highest volume traded currency pairs
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2. There are billions of rands traded with each tick (trade)
3. There are always trends and movements with these major currency pairs
4. The costs (spreads) are tiny compared to those of minor currency pairs. With major currency pairs you get spreads of around one to five pips. Which is very low compared to minor currency trades that can have spreads of around 50-100 pips.
The currency pairs I trade are the following...
To widen a watch list or not?
Q “Timon, I have been struggling to find high probable trades (trading opportunities) for the past three weeks. Is this normal?”
What is the best way to check if there are any probable trades lining up?
I have been watching the following currency pairs only:
Should I widen my watch list for better results?”
This is perfectly normal and is part of the reality of trading.
There are times when the market is conducive for your strategy in terms of the trends and the general market environment.
And there are other times where the Forex markets just don’t mesh well with your strategy.
I'm glad you're waiting for high probability trades; this is a step up from an average Forex trader.
To be honest, there are times where I don't find any high probability trades for a month or two. And it's for this reason, I recommend to never risk more than 2% of your portfolio per trade.
And yes, I would recommend you widen your watch list…
But first you must test the waters to see if the new added currencies will work with your current trading strategy.
Do around 10 paper trades for each first, to see which ones will work with your trading strategy.
But more importantly…
Keep at it because October is a month known for low volatility.
Which trading platform to start out with
Q “Good day I hope the message will find you well. I want to start trading Forex and would like to know if you have a platform and how much it will cost?”
We don’t provide trading platforms ourselves.
Our company publishes research on what to buy and sell by expert analysts.
We do have a recommended brokers list which you can find here
Where do you place your stop loss?
Q “I have a trade ready to get into and I know where I want my take profit to be. Where do I place my stop loss?”
You place your stop loss wherever your trading strategy tells you to...
If you don’t have a trading strategy just yet, then here are some ideas on where you can place your stop loss:
1. Below the current trend from where the market is trading
2. 3% move against a stock price or 30 pips against a Forex trade
3. Below a moving average against where the current trend is
4. In the oversold area of a lagging indicator or oscillator
5. Half way mark between a break out pattern
6. Below a strong support (floor level)
“Wisdom yields Wealth”