Tips for Choosing a Safe Currency Pair for Trading
Choosing the right currency is one of the main steps in forex trading in order to succeed. Generally, professional traders have one or more groups of their favorite currency pairs/ currencies. Therefore this time we will discuss about tips on choosing the right currency pair for trading on Olymp Trade.Olymp Trade currently provides several currency pairs at once. Starting from cryptocurrencies, commodities, stock indices, and also stocks. We just choose one of the trading instruments provided in order to achieve a high probability of victory.
Tips for Having a Safe Currency Pair for Trading
Almost all currency pairs will move with higher volatility than usual when there is news affecting them. But not all pairs move with great volatility when there is news because the pair has a large liquidity. Because of this, the currency pair is referred to as a safe pair to trade.
Choose a pair that is not affected by the news much
Tips for Choosing a Safe Currency Pair for Trading-1
To see data on economic news then you can see the economic calendar that can be accessed for free at Olymp Trade. Adjust first with a time of +7.00 GMT which is the time of West Indonesia Jakarta.
Most pairs of European and American currency pairs such as:
EURUSD
GBPUSD
USDCAD
USDCHF
The couple did not move too much in the Asian session or in the morning because their country's government did not have a news release schedule. While for couples from Asian countries, Australia and America such as:
AUDUSD
USDJPY
NZDUSD
The three currency pairs will not experience much movement in the London session or during the day. For that, the three pairs are more suitable and safer to trade during the day to evening.
Pick 1 Currency Pair
The more currency pairs we use will certainly cause us to have our own difficulties in analyzing them. The more we need to analyze, the more we can break down our concentration on the profitable opportunities later.
For that, choose just one pair mamta money and master the pattern of currency movements until really understand. If you have not been able to determine which currency pair to choose then I recommend using EURUSD.
Master the Currency Pair You Choose
When you choose one currency pair only, it will become more understanding about what the price movements are like and what the price movement patterns are also like. The more we recognize it then we can master it both through technical analysis and fundamental analysis.
Patience in Finding Opportunities
If you are a daily trader then you can use a small time frame such as 5 minutes, 15 minutes and a maximum of 1 hour. If the trader is long-term then you can use the time frame starting from 4 hours. Even better you use multi time frame analysis in order to find better trading opportunities.
Using one of the safe currency pairs means you will find fewer opportunities. For that patience is an important point in finding the best opportunity for you so as not to experience losses.
Choose a Currency Pair with High Liquidity
The more liquid the currency pair you choose, the more limited the movement. This is the true meaning of security. Because of the low movement / volatileity, when the loss will not be so profitable, so will the profit that will not be as big as a currency pair with low liquidity.
Such are some tips on choosing a safe currency pair for trading. Have you found the right currency pair?