Choosing the Right Currency Pair to Trade
The success of every trade depends on knowing the right time to enter the trades and the right currency pair.
When starting to invest, it comes to the minds of traders about what is the appropriate pair to trade on? Are some pairs better than others?
In general, there is no definitive answer to these questions. In the currency trading market, each pair has a different situation and a unique personality, and it can change over time, depending on the prevailing conditions in the market and the suitability of these pairs to the available opportunities.
Some traders in the currency market prefer to stick to several pairs or a specific currency pair all the time to keep the trading experience simple, while others prefer owning and trading a large number of currency pairs to impose greater trading opportunities in the forex market, depending on the prevailing conditions in the currency market and the suitability of these pairs For the available opportunities, knowing that each currency pair has a different situation during trading in the currency market and also that the same pair does not have to achieve the same performance for you every time! The decision in this case is also determined by the appropriateness of the currency pairs chosen for your trading strategy.
Choosing the right currency pair depends largely on the liquidity available on the pair, that is, on the number of traders who trade like you on this pair, which is very important to know the best trading times that provide high liquidity on the pair. When selecting the right pair to trade, you must know the most important news that affects in the movement of the currency, whether up or down, and determine the important times for statements and news so that you can enter into successful deals.
Regardless of the currency pairs that you intend to trade, you can view the old data of the pair, that is, follow its chart with large time frames, in order to know the nature of the pair’s path during its previous trades, but you must take into account that this strategy may not work with all pairs.
If you do not know which type of pairs to target in your trades “major pairs, minor pairs, or even interrupt pairs”, then in all cases the successful trader depends in his trading on exploiting the news and seizing opportunities to achieve high profits and build successful strategies, and do not forget that your strategy may achieve good results on One of the pairs while failing with other pairs!