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How to select the Best Currency Pair for Investment?

snapdragon1970 (snapdragon1970)
Nov 01 2018 at 14:29
1944 posts
Good advice from above, for someone new ,one currency is more than enough to begin with eur/usd is a good place to start, be careful trading weak against strong because its delayed data, we trade up to the news/data and after, some scalping on the release,I like to trade Gold to when its below 12.

"They mistook leverage with genius".
bellabella
Nov 02 2018 at 06:28
10 posts
dianajs posted:
I prefer to avoid trading news for the most part. Why do you like trading Gold?

I like to trade GOLD because it always has good volatility in the market. Like the EURUSD. Also I like USDJPY currency pair.
Why do you avoid trading news?

Wildbill
Nov 04 2018 at 07:59
35 posts
Currencies are not meant for long term investment unless you mean position trading which takes a long term view of a currency pair to trade. The best advice I can give is look for a currency pair that has gone from a high or a low for 1000 pips. Central (sovereign?) banks don't like that much continued movement in their currency in any one direction for economic reasons so they may signal the market movers by interest rates or a strong advisory statement to the world that they may step in to change the direction.

The strong currency of the pair is the one to look for of course. You may see signs of a reversal of a long term run around that 1000 pip mark. Or hear rumors of the central bank wanting a change around that area. Kurota of Japan and Drahi are famous for their 'advisories' but sometimes they cry 'Wolf' too often.


This basically applies to the majors and other pairs which are freely traded. Exotic pairs are so volatile that who knows what they might be long term.😲


Good luck and be careful out there.

Dostiev
Nov 06 2018 at 11:25
10 posts
You could do speculative investment in some exotic currencies that have recently devalued, Turkish lira, Russian ruble, Argentinean Peso etc. They could be good speculative investments. But all exotics carry a lot more risk (and volatility) than the majors so be careful

smith_fx
Jul 13 2019 at 06:44
25 posts
The following 3 pairs are the best to trade as they are highly liquid and ensure good returns.
1. USD/EUR – This currency pair is the most popular currency pair as well as not too volatile. It has got the lowest spreads and so least risk.

2. USD/GBP – Though this pair is a volatile one however, one must keep in mind that larger profits come with larger risks. So many traders prefer to trade in this pair.

3. USD/JPY – It is another popular currency which has low spreads , less risk and a great chance of generating high profits for its traders.
 
Other than these pairs , the following tips will help an investor to choose which currencies to trade in.

    • Trade in the major pairs. Majors pairs include the US DOLLAR as one currency such as USD/CAD , AUD/USD , USD/CHF ETC.

    • Take a look at the charts. Try to analyse the trends by noticing which currencies are showing absurd patterns and which are going good.

    • Pair up strong currencies with the weak currencies.

    • Always remain updated about the news. The economies which are progressing are always good to trade forex in and vice versa.

willtradr
Jul 17 2019 at 05:41
25 posts
TanEric posted:
Can anyone help me in knowing the best currency pairs for trading in the forex market? I am dilemma please help me or share any link which could help me in knowing that.


It differs from person to person based on their needs or expectations as traders such as long or short term aspect,spreads or you can choose the pairing of your interest because pairs tend to trending so choose which will suit you. You can keep yourself updated by latest market news or trying pair up strong currencies against weaker ones.

togr (togr)
Jul 17 2019 at 06:57
4862 posts
smith_fx posted:
The following 3 pairs are the best to trade as they are highly liquid and ensure good returns.
1. USD/EUR – This currency pair is the most popular currency pair as well as not too volatile. It has got the lowest spreads and so least risk.

2. USD/GBP – Though this pair is a volatile one however, one must keep in mind that larger profits come with larger risks. So many traders prefer to trade in this pair.

3. USD/JPY – It is another popular currency which has low spreads , less risk and a great chance of generating high profits for its traders.
 
Other than these pairs , the following tips will help an investor to choose which currencies to trade in.

    • Trade in the major pairs. Majors pairs include the US DOLLAR as one currency such as USD/CAD , AUD/USD , USD/CHF ETC.

    • Take a look at the charts. Try to analyse the trends by noticing which currencies are showing absurd patterns and which are going good.

    • Pair up strong currencies with the weak currencies.

    • Always remain updated about the news. The economies which are progressing are always good to trade forex in and vice versa.


USDEUR does not exist
It is EURUSD and yes that is quite different. It is higly volatile in fact because there are lot of political and economical news affecting both EUR and USD. Single Trump tweet moves the price a lot.

Roy8
Jul 25 2019 at 07:42
7 posts
i think, gold is the best investment and as for best pair currency pair for investment, it has to be the majors. i know they are highly volatile but they will generate good rate of return and you can always go with buy on dips strategy because of the volatility. just my thought.

45656
Jul 27 2019 at 06:05
65 posts
Currency pair decision is always being an important thing for a forex trader as what a trader will receive from his trading of currencies will greatly dependent on how he can make best from the trading of different currencies. Yes, we all traders can be different in trading needs and thereby choice of currency pairs can be varying. I usually love to work with major currency pairs as these pairs show less variability.

Jedimaster1 (Jedimaster1)
Jul 28 2019 at 21:52
10 posts
TanEric posted:
Can anyone help me in knowing the best currency pairs for trading in the forex market? I am dilemma please help me or share any link which could help me in knowing that.
Hi Tan,

You must know which are the strongest and weakest currencies even before you go to your charts. If you trade long term, trade the fundamentals, if you day trade, trade the sentiment.

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