Are you Trading the Right Pairs or Just the Ones Closer to Home?
In This Video:
00:28 Do you Trade Currencies based on Where you Are?
01:25 Let’s look at How I Pick my Pairs
02:31 Always Let the Charts Talk to You
In today’s video I’m going to talk about which currency pairs I trade and the reasons why. So let’s get into that right now!
Hi Forex Traders, it’s Andrew Mitchem here, the Forex Trading Coach and I’m on holiday in Paris. Sorry if I’m shouting but as you can tell there’s a lot of noise behind me. I’m actually at the Arc de Triomphe as you can see here – a magnificent part of Paris – absolutely love it over here.
Do you Trade Currencies based on Where you Are?
So let’s go into trading itself. Well, just because I am in Paris doesn’t mean to say I’ve been trading the Euro (EUR). It’s important to trade what you see on the charts, at the time. What’s looking strong, what’s looking weak? And so, I deliberately never get to worry about which pairs I am trading. In fact the only pair that I’ve traded this week on the daily charts, as I’ve been on holiday and I haven’t really traded as much as I should have, is the New Zealand Dollar/Canadian Dollar (NZD/CAD), on the daily charts, and that’s all I’ve traded.
So you think about the New Zealand Dollar (NZD) and Canadian Dollar (CAD), not exactly the most prominent currency pair out there but that’s what I’ve taken. And, I’ve just looked on my charts on my mobile phone just a couple of minutes before I made this video and I’m up over 1.2% for that particular trade. So it just goes to show that you trade the pair that’s showing the best setup at the time and that’s regardless of the currency pair.
Let’s look at How I Pick my Pairs
Personally for me, I look through the daily charts each day, I look through the strengths and the weaknesses; the likely strong currencies; the likely weak currencies, and then you put those two pairs together. So, for instance, I was taking a buy trade on the New Zealand/Canadian Dollar (NZD/CAD), so I was looking for strength in the New Zealand and weakness in the Canadian Dollar (CAD) – I put the two together. The pair itself, actually, showed a really good, strong buy-trade setup so I took the trade.
So, I’ve put part of the order in at the market and another part at the retracement at a retracement level that I use. So, as I was buying the pair, I was looking for the pair to move back lower first and get me in on the retracement order before then pulling away and moving up into the long position.
In the end, the retracement order never filled but of course the market orders’ in straightaway and I made really good profit on that market order. So, regardless of the time frame you trade, to me it’s really important to trade the technical setup that’s showing, the best at the time – regardless of what that is; regardless of where you live!
Always Let the Charts Talk to You
You know, like I said, I’m from New Zealand so it doesn’t mean to say I’m always trading New Zealand Dollar (NZD). I’m in Europe this week; I was in America last week – doesn’t mean that I’m taking the U.S. Dollar (USD). So I hope that helps you take what’s showing the best technical trade at the time. Do that and you’ll give yourself a lot better chance at making some really good money from trading rather than, maybe, concentrating just on one pair – on, let’s say, the British Pound/U.S. Dollar (GBP/USD) – just because you think it’s a high volatility pair.
It is but that doesn’t mean to say that all the time it’s showing the best setups!
As an example, you might, let’s say, have strength in the British Pound (GBP) and also strength in the U.S. Dollar (USD) on the same day. Well, put those two together, what are you likely to see? Well, potentially, not that much movement on the British Pound/U.S. Dollar (BGP/USD) that day and so, that’s how I view the market.
Looking for obvious strong currencies, obvious weak currencies and taking advantage of that for the upcoming day within the markets.
So hope that helps – this time next week I’m going to be coming to you on the video and podcast from Tokyo so it’d be interesting to see what’s been happening over there with the Japanese Yen (JPY).
So once again, this is Andrew Mitchem, the owner of The Forex Trading Coach, from Paris, Au Revoir and good trading.
Bye for now!