Knowing your chosen currency

Ricex · (#1 (**permalink**))

When I first started trading in the Forex market I watched everything and anything that moved. Trouble was I ended up like a dog chasing it's tail, round and round thinking I had it all covered when in fact it was all blurring into one big confused mess.

Just what I didn't need at the start, more stress and worry about things I had no idea if I needed to be stressed and worried over!

Give yourself a chance to become knowledgeable on two or three currencies that for whatever reason take your fancy, and really understand their traits. You hear it a lot and I'm going to repeat it here..... keep it simple.

Look at how it works from near and far, it's volatility and at what times is it best to trade, it's daily range, it's relation with a commodity maybe, it's interest rate differential, how it reacts to certain types of news events etc. etc.

A full understanding of a few currencies will help you greatly in your trading, you don't want to be "a jack of all trades, master of none" .

Lhar_fpa · (#2 (**permalink**))

What was the pairs that you traded when you started in forex? =)

Ricex · (#3 (**permalink**))

EURUSD,GBPUSD,EURGBP,AUSUSD,NZDUSD,USDCHF,USDCAD,U SDJPY,GBPJPY,EURJPY,CADJPY + GOLD & OIL.

I personally was not capable of following all of those day in and day out, but at the start that is what I thought traders did. So as soon as I realised that I didn't need to chase every pip on the planet my trading became a lot more manageable and focused.

I recommend having a clear out if anyones feeling at all overwhelmed by it all, you don't need all that.

If you've started out by looking at only one or two currencies..... may I be the first to congratulate you on such a wise and clever decision.... well done you.

Lhar_fpa · (#4 (**permalink**))

Wow, that's a lot of pairs that you traded, well for me i'm planning to open a real account on EUR/USD. I wanted to focus on 1 currency pairs first. =)

Ricex · (#5 (**permalink**))

That is a good plan Lhar, what sort of 1st account are you going to open?

Lhar_fpa · (#6 (**permalink**))

I'm planning to open an account with fxcm, I heard good reviews about this broker. That is still a plan, because i'm still on demo. Hehehe, hope to become a real trader soon. =)

Ricex · (#7 (**permalink**))

That's a safe first choice of broker, there are some excellent benefits for new traders starting out with FXCM, their training course for example, also you could take advantage of their micro accounts as a good transition from demo.

Eric Alyea · (#8 (**permalink**))

Hey Rice, I though you were suppose to be at the Corporal review board today.
I think all your stuff is worthwhile and appreciate your posts and work here.

Eric

Corporal requires at least 50 days and 70 posts.

Ricex · (#9 (**permalink**))

Thanks Eric it's a pleasure to help out on a site like FPA.

Pharaoh · (#10 (**permalink**))

Looks like our favorite AssMod finally handed Ricex his new stripe.

Congrats Corporal Ricex!