Should You Only Trade The Major Forex Pairs?
#388: Should You Only Trade The Major Forex Pairs?
In this video:
00:26 – 2 things to talk about today
00:53 – How do you know which pairs to trade?
01:43 – Should you only trade the Majors?
02:28 – My trading routine
04:55 – It doesn’t matter which pairs I trade
05:18 – All covered in my 5 star rated coaching course
05:42 – I’ll be interviewing Blueberry Markets – let me know your questions
How do you know which Forex pairs to trade? And when? Let’s talk about that and more right now.
Hey, Forex traders, Andrew Mitchem here, the owner of The Forex Trading Coach with the video and podcast number 388.
2 things to talk about today
Now I’ve got two things to talk about. The first, I want to talk about how I can help you to know which Forex pairs to trade.
And secondly, at the end of the video, I’m going to explain about next week’s video and podcast when I’m going to be interviewing, Ben Clay from Blueberry Markets and I want to know from you, what’s your number one question you’d like me to ask Blueberry Markets to Forex Brokers. So we’ll talk about that at the end.
How do you know which pairs to trade?
So back to the first point, how do you know which Forex pairs to trade? Now, it’s a problem that a lot of people come to me and they say, hey Andrew, look, I just don’t know what to trade.
There’s a lot of currency pairs out there, which ones should I look at? And as Forex traders, we’re quite a fortunate position when you think about it. And that we really only have eight main currencies to look at and the combinations of each. Now of course there’s extra currencies like Norwegian kroner and Swedish krona and South African rand and all those. But there’s really the main eight. Unlike most other markets out there where there could be hundreds or even thousands of different stocks and shares and companies to look at. So we do have an advantage, but it’s still confusing for a lot of people.
Should you only trade the Majors?
And now another thing is a number of people also suggest that you should just look at the main currency pairs, the majors, and that will be like the GBP/USD, EUR/USD, USD/JPY, USD/CHF, AUD/USD, NZD/USD, USD/CAD.
And you start to see the problem there is that they all have the US Dollar in them. Now let’s say the US Dollar happens to be quite flat. Then there may not be many opportunities there, and that becomes the issue or the US Dollar is very strong or very weak, and they’ll move together and then things suddenly change around and they all come and stop you and that becomes the problem when you trade just the majors. So what I like to do this is my routine.
My trading routine
At the beginning of each week, I scan the weekly charts on all the currency pairs or the main character pairs. There’s about 28 of them. And by setting up my weekly charts as a profile on my MetaTrader Platform, it’s very easy to get all the Euro pairs, all the Pound pairs, all the Aussie pairs, all the Kiwi pairs and just scan through and see what’s happening on the weekly charts.
There’ll be some trades there most weeks, but even if there are no trades or very few trades off the weekly charts themselves, what they do is they give me an overall biases, this country pairs a little bit indecisive, or this one strongly bullish, or this one’s very bearish and is that likely to continue for the upcoming week, yes or no?.
And it allows me to basically to plan that bigger picture. And then at the beginning of each new day, I then do exactly the same process, put on a profile where I have just the daily charts. And quite often there’ll be trades there specific trades based off the daily charts. But also I get my bias for that day, my strength and weakness analysis of where I see currency pairs. Again, some may not be moving much. And so I just tried to avoid those pairs that day. Some might be very strongly bullish or very strongly bearish.
So that then helps me when I scale down to the shorter timeframe charts, and even like the 12 hours, the eight, the six, the four, and occasionally the one hour charts. So I don’t need to have everything lined up together. It does help if I can have, let’s say a trade on the four hour charts let’s say by trade. And let’s say that we have on the same currency pair the weekly and the daily also showing good, strong bullish tendencies. Then if I see that by trade on the four hour chart, then providing of course the candles in the right part of the chart, and I get the setup that I’m looking for, and I’ve got something to protect my stop loss. I’ve got a good reason why my profit target is going to get hit and not, not bounced before we get there. Then of course, that trade has more probability.
But I’m still coming back to the currency pair that I decide to trade depends on the timeframe chart that I’m looking at but more importantly, it looks at the setup. I have to have the candle pattern set up, correct on that chart, regardless of what the character pair is or what the timeframe chart is. I have to have that set up correct first. And if I have that right, that then determines which currency I trade.
It doesn’t matter which pairs I trade
Now, I don’t trade just the New Zealand dollar because I happen to live here. It doesn’t matter to me, which of those currencies I trade. And quite frankly, it doesn’t matter which direction providing I have the technical setup and that’s what’s important. And that’s how you can help yourself determine which currency pairs to trade and to know which to trade.
All covered in my 5 star rated coaching course
Now, of course, in my five-star rated coaching course, we cover all that I’ve had to do that. And the great thing about following our membership site is every single day we do that exact process and we write down what we’re looking at and why? We do that at the beginning of each week, the weekly charts at the beginning of every month for the monthly charts. So it’s an all wheel time information that can help you to train your eye, to see what we see. So I hope that bit helps.
I’ll be interviewing Blueberry Markets – let me know your questions
Now moving on to part two quickly. This time, next week, I’ll be sharing with you an interview that I’m going to be doing next week. Next Wednesday with Ben Clay, who’s a head of marketing at Blueberry Markets over in Australia. Now Blueberry Markets can accept currency traders from many countries around the world. I’ve been personally with them. I have my own live accounts with them and have done for many years.
But what I want to do is interview Ben with maybe the top seven or eight questions that you ask me. I don’t want to just ask my own questions. I want to know from you, what is the most important thing you want to know from a broker? So if you could interview a broker yourself, what’s the first thing you would ask them? Let me know what that is. Reply to me or when you see this video or podcasts, or to email me [email protected] Do that before Wednesday of next week. And when I interview Ben, I’d love to ask your question to him on your behalf.
So I hope that helps. This is Andrew Mitchem here at the Forex Trading Coach. I see you this time next week, when you will be watching the podcast with Ben from Blueberry Markets. Bye for now.
Episode Title: #388: Should You Only Trade The Major Forex Pairs?