best pairs so you can trade every day and gain more than 50p

everything that doesn't belong elsewhere cometh here

Moderator: moderators

User avatar
lukx
rank: 500+ posts
rank: 500+ posts
Posts: 789
Joined: Wed Feb 04, 2009 5:10 pm
Reputation: 0
Gender: Male
Contact:

best pairs so you can trade every day and gain more than 50p

Postby lukx » Sat Sep 25, 2010 8:58 am

Watching too many pairs isn't good but in your opinion what are the best pairs that can give you most signals a day so you can grab around 50 pips on them.

Please add www.kreslik.com to your ad blocker white list.
Thank you for your support.

User avatar
gfg1
rank: 150+ posts
rank: 150+ posts
Posts: 185
Joined: Thu Aug 21, 2008 12:38 am
Reputation: 0
Gender: Male

Re: best pairs so you can trade every day and gain more than

Postby gfg1 » Sat Sep 25, 2010 9:57 am

lukx, you have been around here a long time. Like you, I have too many charts open too. This leads to a lack of focus on my part, and missed trades. Just follow what dragon, es/pip, and the newest poster arkan use. They follow EURUSD and GBPUSD primarily.

lukx wrote:Watching too many pairs isn't good but in your opinion what are the best pairs that can give you most signals a day so you can grab around 50 pips on them.

User avatar
The_Snowman
rank: 50+ posts
rank: 50+ posts
Posts: 82
Joined: Sun Oct 12, 2008 8:49 am
Reputation: 0
Location: In the desert
Gender: Male

US Dollar ? The World?s Reserve Currency

Postby The_Snowman » Sat Sep 25, 2010 11:06 am

US Dollar ? The World?s Reserve Currency
If you are a currency trader, and focus on trading one or more of the major currency pairs?EUR/USD, GBP/USD, USD/CHF and USD/JPY - then consider yourself a specialist. Yes, it?s true! You are a specialist in the US Dollar - a ?Greenback Guru? so to speak.
Each currency ?pair? is obviously comprised of two currencies. If you are long the GBP/USD, then you are actually buying pounds and selling dollars. If you are short the USD/JPY, then you are actually selling dollars and buying yen.
In each of the major currency pairs, the USD is a part of the equation. This means if you study and understand the fundamentals of the US Dollar, the US Economy and the inner workings of the Federal Reserve Bank of the United States, then you?ve done most of the work needed before you should consider trading any of the four major currency pairs!
The so called majors are the most liquid and widely traded currency pairs in the world. Trades involving the majors make up about 90% of total Forex trading. Think about it?if the USD is half of every major currency pair, and the majors represent 90% of the entire market, then your focus on understanding what drives the USD will have a huge impact on nearly all of your future trade plans.
There is also a wonderful benefit of specializing in trading the USD. The United States, since roughly end of World War II, has been the Reserve Currency of the world. What does that mean? It means that the fate of the USD has a much larger impact on the Forex market than any other currency.

What?s Your USD Bias?
The only thing you need to do is determine your bias - US Dollar likely to strengthen or to weakens - then apply this to the various world currency pairs. Notice what side of the equation the USD is in the currency pair. When you buy a currency pair, you are buying the first currency and selling the other. For example, if your bias is for the US Dollar to strengthen, then you would want to buy USD. Here?s a list of the kind of trade you would enter in each of the four major currency pairs:
Pair Buy or Sell
USD/CHF Buy
USD/JPY Buy
EUR/USD Sell
GBP/USD Sell
In all cases, you are long the USD and short the other currency in the pair.
One bias, four trades.
This is generally true, but each currency pair will reactive differently to the USD. That?s because each local currency pair has its own strengths and weaknesses?has its own value. For example, if the EUR is also strengthening it would move less with the USD strengthening than the JPY if the Yen was weakening. Generally speaking, however, the majors all move predictably in one direction or the other in relation to the strength or weakness of the USD.
How often is this true? Not 100% of the time, but most of the time.

Using Currency Correlation to Your Advantage
Say, for example, that you?ve located some data on currency correlation coefficients based on the last 100 trading days, and determined the following:
? The GBP/USD moved the same as the EUR/USD 97% of the time
? The USD/CHF move the opposite direction of the EUR/USD 99% of the time
Armed with this kind of information, you can avoid entering two different positions that would likely cancel each other out. By knowing that EUR/USD and USD/CHF move in opposite directions roughly 99% of the time, you would conclude that having an open long trade in EUR/USD, while also being in a long USD/CHF trade, is the same as having virtually no position at all. The two trades would effectively cancel each other out, due to the negative correlation exhibited by these two pairs. In other words, when your long EUR/USD moves up in price, your USD/CHF long will be going down by nearly the same amount, resulting in a pretty pointless trade at double the spread cost. Instead, the savvy trader, understanding this negative correlation, would enter both a long EUR/USD position and a short USD/CHF position?basically, shorting the USD in two different trades.

User avatar
The_Snowman
rank: 50+ posts
rank: 50+ posts
Posts: 82
Joined: Sun Oct 12, 2008 8:49 am
Reputation: 0
Location: In the desert
Gender: Male

US Dollar ? The World?s Reserve Currency

Postby The_Snowman » Sat Sep 25, 2010 11:06 am

sorry, double post, how 2 delete?
Last edited by The_Snowman on Sat Sep 25, 2010 11:14 am, edited 1 time in total.

User avatar
The_Snowman
rank: 50+ posts
rank: 50+ posts
Posts: 82
Joined: Sun Oct 12, 2008 8:49 am
Reputation: 0
Location: In the desert
Gender: Male

Postby The_Snowman » Sat Sep 25, 2010 11:07 am

sorry, triple post, how 2 delete?

Please add www.kreslik.com to your ad blocker white list.
Thank you for your support.

User avatar
bredin
rank: 1000+ posts
rank: 1000+ posts
Posts: 1032
Joined: Mon Feb 16, 2009 10:41 pm
Reputation: 0
Gender: None specified
Contact:

Postby bredin » Sat Sep 25, 2010 11:52 am

II_DB_RANGE will show you the data you will probably want for confirmation..... but reality is it really doesnt matter too much, unless you trying to scalp- then Id leave EN and GN alone ;)

G.
Welcome to the era of "Guns and Maskies" Trading!
The previous message contains discretion. Viewer nudity is advised.
Insanity Industries Indicators Here
Insanity Industries on YouTube!

User avatar
trueblueTEX
rank: 500+ posts
rank: 500+ posts
Posts: 532
Joined: Mon Apr 12, 2010 4:38 pm
Reputation: 0
Gender: None specified

Postby trueblueTEX » Sat Sep 25, 2010 12:51 pm

bredin wrote:II_DB_RANGE will show you the data you will probably want for confirmation..... but reality is it really doesnt matter too much, unless you trying to scalp- then Id leave EN and GN alone ;)

G.


Bredin, just checking what you mean. Is "N" New Zealand currency?

User avatar
bredin
rank: 1000+ posts
rank: 1000+ posts
Posts: 1032
Joined: Mon Feb 16, 2009 10:41 pm
Reputation: 0
Gender: None specified
Contact:

Postby bredin » Sat Sep 25, 2010 1:55 pm

yeah

G.
Welcome to the era of "Guns and Maskies" Trading!
The previous message contains discretion. Viewer nudity is advised.
Insanity Industries Indicators Here
Insanity Industries on YouTube!

User avatar
adaseb
rank: 500+ posts
rank: 500+ posts
Posts: 871
Joined: Fri Aug 21, 2009 5:20 am
Reputation: 0
Gender: None specified

Postby adaseb » Sat Sep 25, 2010 10:38 pm

The only pairs I trade full-time now is EURUSD and GBPUSD but I don't trade the spot market anymore. I've moved on to the futures market and trade the 6E and 6B, which is the EU and GU derivatives.

On a longer time frame I trade the ES (Emini S&P 500), Gold (GC), and Crude (CL).

Eventually I will drop scalping entirely and the currencies and just trade long term the Gold and Oil futures.

Forex is nice because of the high leverage, but sometimes it can be a real bitch to trade compared to other instruments.

By the way unless you are a position trader, making 50 pips a day scalping is not that easy when you keep a tight stop.

If you are an aggressive scalper such as es/pip you can easily open up many positions a day risking between 2-3 pips on each trade if you take trades at the extremes. You just need to know how to pick them.

User avatar
tmanbone
rank: 500+ posts
rank: 500+ posts
Posts: 723
Joined: Sun Nov 15, 2009 3:52 am
Reputation: 0
Gender: Male

Postby tmanbone » Sat Sep 25, 2010 11:26 pm

This is only an opinion.

The best currency pair to start trading is a currency pair that has a small spread and good signals. So IMO the EUR/USD is the best. Most brokers charge 2 pips when you buy EUR/USD.

GBP/USD is similar to EUR/USD but it has a higher spread and greater volatility. You can try the GBP/USD "ONLY" after few months if you have been making pips with EUR/USD.

"One pair, one method, until successful" - TRO 35+ year veteran. Isn't it funny that we don't realize the lessons our elders teach us until 20 years after the fact. Talking to myself here, no disrespect.
"The simplicity of the markets is it's greatest disguise"

T

Please add www.kreslik.com to your ad blocker white list.
Thank you for your support.


Return to “general”