In this video:
00:22 – What is the best Forex pair to trade?
00:59 – Don’t limit your trading opportunities.
01:55 – Give yourself a higher probability of success.
02:25 – An example of Strength and Weakness.
03:50 – What are the current market conditions?
04:25 – Look at multiple FX pairs.
05:06 – Check out my new Masterclass.
05:15 – Book a call to talk with us.
05:28 – Blueberry Markets as a Forex Broker.
Hey, traders! Do you know what the best forex pair is to trade? If you don’t, listen up. I’ve got some interesting news to cover for you.
Hey there, Traders! It’s Andrew Mitchem here at The Forex Trading Coach with video and podcast number 643.
What is the best Forex pair to trade?
Now, I’ve been asked 4 times this week already by 4 different people. And it’s the same question. It is, Andrew, can you tell me please, what’s the best forex pair to trade? What should I be looking at?
Now, what it does show me is that unfortunately, there’s a lack of knowledge out there by so many people when it comes to trading, and they just always want to know what is the answer?
What’s the best thing, what time frame, what pair? What’s my stop loss? Where should my profit target be? All those type of things. And it unfortunately shows that most people don’t do enough research into trading.
Don’t limit your trading opportunities.
And the problem is, is that people see the major currencies like the EUR/USD or the USD/JPY, and they think that’s the only pair I should trade.
And I suppose, in all honesty, when I started, you know, it was the GBP/USD, the USD/CHF, the USD/JPY, and then later on the EUR/USD. And everybody thought those were the 4 pairs you should focus on trading. And the issue is, why just those 4 pairs? Now, when you think about it, all 4 of those that I’ve just mentioned are all US dollar dominated.
And therefore, if you focus on pairs that are just US dollar dominated, you’re not giving yourself a very good chance of success because they’re all likely to move, much of the time, in the same direction. And because it depends if the US is strong or the US is weak.
Give yourself a higher probability of success.
And as a trader, I like to give myself the best probability chance of success. So when it comes to which pair is the right 1 to trade, I don’t get aligned to any pair. I look at all the different pairs and you can very quickly scan through the charts, looking to see if there’s a suitable trade there, yes or no.
And the other reason I do that on a daily basis is because I also prefer to trade with strength and weakness.
An example of Strength and Weakness.
Now, give you an example. Let’s focus again on the EUR/USD. What happens if for today the Euro is really strong and the US is really strong, and that’s the only pair that you look at? Then you’re trading 2 strong pairs together, and you see how the problem might come. 1, you’re unlikely to get many setups or good setups.
And what happens if you buy the EUR/USD because the Euro’s got some strength, but you also know now that, and you would know this only if you look at more pairs. If you don’t look at more pairs, you’re not going to know this. The US dollar has got strength. So why would you be buying the EUR/USD if you know that the US dollar has got strength?
And so, what about other pairs in the market? What about pairs like the CAD/JPY or the NZD/CHF? And so by analyzing multiple markets at the same time, you can soon understand which pairs are strong, which pairs are weak because, doesn’t it make more sense to trade a strong currency against a weak currency? And so that, to me, adds more basis to my trading.
And again, it’s just adding more and more probability to my trading. So when someone says to me, what’s the best pair? I can’t answer it. And of course, there’s more things on top of this, you know, to consider.
What are the current market conditions?
It depends on the day, what’s happening in the market right now, what news has been, what news there might be coming up, what time frame chart you’re looking at, what’s the conditions?
What’s the time of year? Right now we’re in the Northern Hemisphere summer. Does that mean that there’s less price action in maybe, say, the Franc and the Euro? Maybe. You know, so all these things have got to come into it. What’s the characteristic of the market right now? And so by picking 1 or 2 pairs and giving you that as the answer, that’s not me doing my job. That’s not what I suggest you do.
Look at multiple FX pairs.
I suggest that you scan through multiple pairs and give yourself a high-quality chance of a successful trade.
Use strength and weakness. Use candle patterns. Don’t limit yourself to just something against the US dollar. It’s not a wise idea. And so there’s a lot more you can be doing to help yourself there.
And if you do want to look at pairs that include the US dollar, why not look at things like the AUD/USD or the NZD/USD? Because maybe if that US is still strong, maybe the Aussie and Kiwi are weak that day. So therefore you might be selling the AUD/USD or the NZD/USD. So all these things can certainly massively help you.
Check out my new Masterclass.
If you’d like to find out how we do this, and you’d like to learn from the way that we trade, have a look at my On-Demand Masterclass. I’ll put a link to that here.
Book a call to talk with us.
If you’d like to book a call to speak to myself or 1 of my team, we’re more than happy to do that. And we can cater for people right around the world. So it doesn’t matter what time zone you’re on, you can book a time with us and I’ll put a link to that also here.
Blueberry Markets as a Forex Broker.
If you’re out there looking for a really good broker where you can trade multiple time frames, multiple markets, multiple currency pairs, and non-forex markets as well, have a look at Blueberry Markets. I’ll put a link to them here as well.
So that’s it for this week. This is Andrew Mitchem at The Forex Trading Coach, keeping you on the right side of your trades and putting probability in your favor.
Episode Title: #643: The Best Forex Pair? Everyone Gets This Wrong