See More

See More

Martin Cole on How To Trade Currency Pairs

Martin Cole on How To Trade Currency Pairs

2 - 3 - minute read

2 - 3 - minute read

Learning how to trade currency pairs is like walking over an old rickety bridge. You will get to the other side, but it can be a stressful experience. But don’t let that put you off learning how to trade currencies. There are rich rewards to be had. Trading currency can be an excellent way to create wealth.

Currency pairs are traded by the buying or selling of a particular currency pair. 

Most traded currency pairs, known as the top six currency pairs are EUR/USD - USD/JPY - GBP/USD - USD/CHF - AUD/USD - USD/CAD. 

Perhaps these are the best and most predictable currency pairs to trade, but many traders trade other pairs. There is no right or wrong, it's what suits you.

​How to make money trading

When you are trading currency, you are buying or selling one side of a currency pair. This is Forex Trading. What you are doing is attempting to predict when one currency in a pair will increase or decrease in value relative to the other currency in the pair.  

If you take the time to learn how to predict currency markets, then you will discover a wealth creation method that will change your life.  ​

Which are the best currency pairs to trade?

This is an age-old question, in reality, there is no ‘best’ pair. There are the most active currency pairs and also the most inactive pairs. The better question is: “Which currency pair is best for me to trade and make money with.

What you require is the ability to profit from your trades. How you do that is far more important than what pair you trade.

Sure it makes sense to trade a currency pair that has good liquidity, but many traders trade pairs that are slow. They may be trading these slow pairs because of their trading style and what they want to achieve. 

One example of this might be that a person might want to buy or sell currency of their own country to protect some savings. They might not even be an active currency trader.

You could, for example, walk into your bank, open a foreign exchange account and transfer some of your local currency into that account. 

In that example, your bank has made a currency trade on your behalf using the money your funds on deposit in your base currency.

What are the best trading times?

The best trading times are going to be the times when you are available, and you can read and understand the market so you can turn a profit from your trading. 

Currency markets trade 24 hours a day, and while this is true, the practicalities of trading 24 hours a day do not work. 

Many traders, in particular, those beginning in currency trading, will study mechanical ways to trade the markets. These automated trading methods are often known as trading robots. The concept of a trading robot is very appealing, which causes many new traders to get caught up in the belief they can make money while they sleep. This is a falsehood and a damaging one. Trading robots are not all we deem them to be and make no adjustment for the future as they try to recycle the past to mean something in the future.

Best currency to trade right now.

Impatience is never a good thing when trading financial markets, notably currency markets. 

Traders are often driven by pending news releases that they expect will move the currency market. This method of trading is reactive and not taking into account what may happen as an underlying cause of the news item.

If you have done your research, you know the best currency to trade right now is the one you formed a sound and well-reasoned judgement upon. 

It’s far better to be a proactive trader to do your analysis and looking at your overall trading goals as opposed to being reactive towards flash news stories and financial announcements.

We can say the best currency to trade right now is:

1. The currency you have been tracking for some time

2, The currency you have analysed with logic and reason.

Best currency pairs to trade at night.

Many people coming to trading will be from traditional employment types where there is a requirement to start work in the morning, work through the day and then finish early evening.

These types of working hours leave very little in terms of time to produce extra income or even prepare for a better career. Often people become trapped in jobs they no longer enjoy because of the inability to find enough time to develop an escape plan.

When would-be traders look at the currency markets, they realise they trade in a 24-hour cycle, and the reason they could trade after their traditional work hours.

Sometimes, this might be possible, but only if you are trading currency in a time zone offset from your own. 

As an example: there is likely to be little market movement of the currency in your home country during the early and late evening. But if you locate a currency where your early evening and late evening is that currencies local main business trading hours then you can trade this currency pair at night. 

There are no best currency pairs to trade at night. If you were to base your trading upon the basis of opposing time zones, you would miss many trading opportunities and also expose yourself to sitting in trades that were not moving. You cannot make money if you are trying to trade a currency market that is not moving up or down.

Most predictable currency pairs.

A frequent question by traders is, which are the most predictable currency pairs? What they mean by this question is which are the easiest currency pairs to make money from.

This question is putting the cart before the horse. It doesn’t matter which currency pair you trade as there are only three things a currency market or any traded market can do. 

A particular currency pair will either trend upwards that is an increasing price or trend downwards and a decrease in price, or stagnate and oscillate up and down in a tight range of minimal price movement. 

Since all currency markets will, at some point, be displaying one of those three characteristics, it will be of little value to focus on one particular currency pair.

Logic says the way to do this is to focus on the result, that is the result you as a trader wish to accomplish. 

To determine this result is easy because the fact of the matter is we should not care whether a market is trending up, trending down or moving sideways. The single overriding factor for the trader is the expectation of making a financial profit from the act of placing a trade.

What we need to do is to ask the question; which is the most predictable currency pairs and exchange it for a question that reads; which is the most predictable currency pair to read and understand future direction?

It may seem like a small change in how we are asking the question. But the result in being able to read and understand the future direction of any currency pair will provide you with the opportunity to create significant wealth.

In summary of how to trade currency pairs.

There are many variables in trading currencies. Time, price and ability are the most important. Many traders fail because of a tendency to follow the crowd. The problem with this crowd following, in trading currencies is many traders will distort their beliefs to the point of ignoring reality. We often see this distortion when a trader holds a trading position that is losing money and refuses to cut their losses. They have a belief the market will turn, and they will profit. 

Remain flexible at all times with your decisions about what direction you believe a market will move in. Be open to forming an opinion and then challenge that opinion with what you see as on the screen in front of you.

If you have enjoyed this post article have found any parts of interest or things of which you would like a more in-depth explanation, you might enjoy my free currency trading course.

Learning how to trade currency pairs is like walking over an old rickety bridge. You will get to the other side, but it can be a stressful experience. But don’t let that put you off learning how to trade currencies. There are rich rewards to be had. Trading currency can be an excellent way to create wealth.

Currency pairs are traded by the buying or selling of a particular currency pair. 

Most traded currency pairs, known as the top six currency pairs are EUR/USD - USD/JPY - GBP/USD - USD/CHF - AUD/USD - USD/CAD. 

Perhaps these are the best and most predictable currency pairs to trade, but many traders trade other pairs. There is no right or wrong, it's what suits you.

​How to make money trading

When you are trading currency, you are buying or selling one side of a currency pair. This is Forex Trading. What you are doing is attempting to predict when one currency in a pair will increase or decrease in value relative to the other currency in the pair.  

If you take the time to learn how to predict currency markets, then you will discover a wealth creation method that will change your life.  ​

Which are the best currency pairs to trade?

This is an age-old question, in reality, there is no ‘best’ pair. There are the most active currency pairs and also the most inactive pairs. The better question is: “Which currency pair is best for me to trade and make money with.

What you require is the ability to profit from your trades. How you do that is far more important than what pair you trade.

Sure it makes sense to trade a currency pair that has good liquidity, but many traders trade pairs that are slow. They may be trading these slow pairs because of their trading style and what they want to achieve. 

One example of this might be that a person might want to buy or sell currency of their own country to protect some savings. They might not even be an active currency trader.

You could, for example, walk into your bank, open a foreign exchange account and transfer some of your local currency into that account. 

In that example, your bank has made a currency trade on your behalf using the money your funds on deposit in your base currency.

What are the best trading times?

The best trading times are going to be the times when you are available, and you can read and understand the market so you can turn a profit from your trading. 

Currency markets trade 24 hours a day, and while this is true, the practicalities of trading 24 hours a day do not work. 

Many traders, in particular, those beginning in currency trading, will study mechanical ways to trade the markets. These automated trading methods are often known as trading robots. The concept of a trading robot is very appealing, which causes many new traders to get caught up in the belief they can make money while they sleep. This is a falsehood and a damaging one. Trading robots are not all we deem them to be and make no adjustment for the future as they try to recycle the past to mean something in the future.

Best currency to trade right now.

Impatience is never a good thing when trading financial markets, notably currency markets. 

Traders are often driven by pending news releases that they expect will move the currency market. This method of trading is reactive and not taking into account what may happen as an underlying cause of the news item.

If you have done your research, you know the best currency to trade right now is the one you formed a sound and well-reasoned judgement upon. 

It’s far better to be a proactive trader to do your analysis and looking at your overall trading goals as opposed to being reactive towards flash news stories and financial announcements.

We can say the best currency to trade right now is:

1. The currency you have been tracking for some time

2, The currency you have analysed with logic and reason.

Best currency pairs to trade at night.

Many people coming to trading will be from traditional employment types where there is a requirement to start work in the morning, work through the day and then finish early evening.

These types of working hours leave very little in terms of time to produce extra income or even prepare for a better career. Often people become trapped in jobs they no longer enjoy because of the inability to find enough time to develop an escape plan.

When would-be traders look at the currency markets, they realise they trade in a 24-hour cycle, and the reason they could trade after their traditional work hours.

Sometimes, this might be possible, but only if you are trading currency in a time zone offset from your own. 

As an example: there is likely to be little market movement of the currency in your home country during the early and late evening. But if you locate a currency where your early evening and late evening is that currencies local main business trading hours then you can trade this currency pair at night. 

There are no best currency pairs to trade at night. If you were to base your trading upon the basis of opposing time zones, you would miss many trading opportunities and also expose yourself to sitting in trades that were not moving. You cannot make money if you are trying to trade a currency market that is not moving up or down.

Most predictable currency pairs.

A frequent question by traders is, which are the most predictable currency pairs? What they mean by this question is which are the easiest currency pairs to make money from.

This question is putting the cart before the horse. It doesn’t matter which currency pair you trade as there are only three things a currency market or any traded market can do. 

A particular currency pair will either trend upwards that is an increasing price or trend downwards and a decrease in price, or stagnate and oscillate up and down in a tight range of minimal price movement. 

Since all currency markets will, at some point, be displaying one of those three characteristics, it will be of little value to focus on one particular currency pair.

Logic says the way to do this is to focus on the result, that is the result you as a trader wish to accomplish. 

To determine this result is easy because the fact of the matter is we should not care whether a market is trending up, trending down or moving sideways. The single overriding factor for the trader is the expectation of making a financial profit from the act of placing a trade.

What we need to do is to ask the question; which is the most predictable currency pairs and exchange it for a question that reads; which is the most predictable currency pair to read and understand future direction?

It may seem like a small change in how we are asking the question. But the result in being able to read and understand the future direction of any currency pair will provide you with the opportunity to create significant wealth.

In summary of how to trade currency pairs.

There are many variables in trading currencies. Time, price and ability are the most important. Many traders fail because of a tendency to follow the crowd. The problem with this crowd following, in trading currencies is many traders will distort their beliefs to the point of ignoring reality. We often see this distortion when a trader holds a trading position that is losing money and refuses to cut their losses. They have a belief the market will turn, and they will profit. 

Remain flexible at all times with your decisions about what direction you believe a market will move in. Be open to forming an opinion and then challenge that opinion with what you see as on the screen in front of you.

If you have enjoyed this post article have found any parts of interest or things of which you would like a more in-depth explanation, you might enjoy my free currency trading course.

How To Trade Currency Pairs

How To Trade Currency Pairs

PAT FEATURED IN FOW MAGAZINE

PAT FEATURED IN FOW MAGAZINE

LET ME SEND YOU A FREE COPY

LET ME SEND YOU A FREE COPY

PAT FEATURED IN FOW MAGAZINE

PAT FEATURED IN FOW MAGAZINE

LET ME SEND YOU A FREE COPY

LET ME SEND YOU A FREE COPY