A fact of life is that efforts concentrated towards achieving a set goal/objective, usually yields more dividends than channelling the same level of effort into several ventures.
The same holds for forex trading.
Experience has shown that traders who concentrate their efforts into trading one currency pair usually get more results than traders who scatter their trading efforts across several currency pairs.
Here are the reasons:
1) Familiarity: When one focuses on trading a currency pair exclusively, it enables the trader to master the behaviour of that currency pair, which enables the trader develop better strategies for trading the pair. What you are familiar with, you can handle.
2) Focus: One of the worst mistakes a trader can make is to open several positions in several currencies. Attention is splintered trying to track several currencies with different behavioural patterns.
A loss of focus at the wrong moment brings disastrous results. Remember that if you go to a tree in order to pick fruit, you can only pick one at a time, or cut down one bunch at a time.
I am yet to see a man who tries to cut down two bunches of fruits with both hands. The fruits will drop to the ground and get damaged.
The same holds for forex.
FOCUS ON ONLY ONE PAIR AT A TIME!
------------------------------------
And Why... EUR/USD Out Of The Many?
------------------------------------
I would say...
Higher potential to profit.
The best currency pair that traders are recommended to focus on trading is the EURUSD.
There are several reasons why trading in the EURUSD currency pair is the best way to go.
1) Volatility:
Volatility is a measure of trader activity. Profits can only be made in forex trading when there is reasonable volatility. The more volatile a currency pair is, the more opportunities to profit.
Take a look at the volatility graph that shows the volatility index of the USD compared with other currencies.
If you drill deeper and take a cold hard look at the USD, you will notice the USD drifting towards the Euro in terms of volatility, more than the other major currencies that constitute the major currency pairs.
This goes to show that the EURUSD shows maximum volatility when compared to other currency majors. It is not hard to see why this is the case.
The USD is the global reserve currency, as all traded commodities and international transactions are USD-denominated.
The Euro, being the single currency of the 14 Eurozone member states, provides an avenue where this vast array of countries that make up a large percentage of the world’s trade volume, can be exchanged for goods and services.
2) Economic and Trade Related Activity:
This is highest in the US and the Eurozone, therefore it is not a surprise that the two currencies that make up the EUR/USD are the most traded in the foreign exchange markets.
3) Liquidity:
When a market is liquid, it means that there are ready buyers and ready sellers. This is the best kind of market. When a market is liquid, transaction costs are low and trades can be executed in an instant.
Due to the fact that the EURUSD is the most traded currency pair in the forex market, the transaction costs or the spread (the difference between the buying price and selling price) is the least of all the currency pairs.
This enables traders to maximize profits.
The spread for the EURUSD for some brokers is 0.8 pips while that of the EURCAD is typically 10 pips or more. This may not seem significant for small traders, but when an institution is trading volumes of 1000 lots (a value of $10,000 a pip), it becomes pretty significant.
4) Predictability:
The EURUSD is a very predictable currency pair. Since the ECB’s monetary policy thrust is straightforward and unambiguous, the factors that affect the value of the Euro are pretty much straightforward and easy for traders to use for trading decisions.
The same can be said of the USD. With an ample supply of political and economic news coming from the US and the Eurozone, a trader can predict the direction of the EUR/USD and trade accordingly.
You just need a workable process to follow. Get that process down, and you can run with it, and write your own paycheck.
But without the instructions... uugh it gets ugly. You'll lose THOUSANDS in a blink of an eye... FOR SURE.
And that's what you need: A proven, no BS instructions that simply tell you what to do, and when to do it.
Without that, it gets hard. Impossible almost.
That's why so many people struggle. Without a solid, REAL strategy to follow, you're just guessing.
And when you're guessing, that's not trading... that's GAMBLING.
Now if you want to quickly turn your fortunes around and completely DOMINATE your EUR-USD trades once and for all, you should download this!
The same holds for forex trading.
Experience has shown that traders who concentrate their efforts into trading one currency pair usually get more results than traders who scatter their trading efforts across several currency pairs.
Here are the reasons:
1) Familiarity: When one focuses on trading a currency pair exclusively, it enables the trader to master the behaviour of that currency pair, which enables the trader develop better strategies for trading the pair. What you are familiar with, you can handle.
2) Focus: One of the worst mistakes a trader can make is to open several positions in several currencies. Attention is splintered trying to track several currencies with different behavioural patterns.
A loss of focus at the wrong moment brings disastrous results. Remember that if you go to a tree in order to pick fruit, you can only pick one at a time, or cut down one bunch at a time.
I am yet to see a man who tries to cut down two bunches of fruits with both hands. The fruits will drop to the ground and get damaged.
The same holds for forex.
FOCUS ON ONLY ONE PAIR AT A TIME!
------------------------------------
And Why... EUR/USD Out Of The Many?
------------------------------------
I would say...
Higher potential to profit.
The best currency pair that traders are recommended to focus on trading is the EURUSD.
There are several reasons why trading in the EURUSD currency pair is the best way to go.
1) Volatility:
Volatility is a measure of trader activity. Profits can only be made in forex trading when there is reasonable volatility. The more volatile a currency pair is, the more opportunities to profit.
Take a look at the volatility graph that shows the volatility index of the USD compared with other currencies.
If you drill deeper and take a cold hard look at the USD, you will notice the USD drifting towards the Euro in terms of volatility, more than the other major currencies that constitute the major currency pairs.
This goes to show that the EURUSD shows maximum volatility when compared to other currency majors. It is not hard to see why this is the case.
The USD is the global reserve currency, as all traded commodities and international transactions are USD-denominated.
The Euro, being the single currency of the 14 Eurozone member states, provides an avenue where this vast array of countries that make up a large percentage of the world’s trade volume, can be exchanged for goods and services.
2) Economic and Trade Related Activity:
This is highest in the US and the Eurozone, therefore it is not a surprise that the two currencies that make up the EUR/USD are the most traded in the foreign exchange markets.
3) Liquidity:
When a market is liquid, it means that there are ready buyers and ready sellers. This is the best kind of market. When a market is liquid, transaction costs are low and trades can be executed in an instant.
Due to the fact that the EURUSD is the most traded currency pair in the forex market, the transaction costs or the spread (the difference between the buying price and selling price) is the least of all the currency pairs.
This enables traders to maximize profits.
The spread for the EURUSD for some brokers is 0.8 pips while that of the EURCAD is typically 10 pips or more. This may not seem significant for small traders, but when an institution is trading volumes of 1000 lots (a value of $10,000 a pip), it becomes pretty significant.
4) Predictability:
The EURUSD is a very predictable currency pair. Since the ECB’s monetary policy thrust is straightforward and unambiguous, the factors that affect the value of the Euro are pretty much straightforward and easy for traders to use for trading decisions.
The same can be said of the USD. With an ample supply of political and economic news coming from the US and the Eurozone, a trader can predict the direction of the EUR/USD and trade accordingly.
You just need a workable process to follow. Get that process down, and you can run with it, and write your own paycheck.
But without the instructions... uugh it gets ugly. You'll lose THOUSANDS in a blink of an eye... FOR SURE.
And that's what you need: A proven, no BS instructions that simply tell you what to do, and when to do it.
Without that, it gets hard. Impossible almost.
That's why so many people struggle. Without a solid, REAL strategy to follow, you're just guessing.
And when you're guessing, that's not trading... that's GAMBLING.
Now if you want to quickly turn your fortunes around and completely DOMINATE your EUR-USD trades once and for all, you should download this!
It will be your go-to resource for practical, step-by-step information that will teach you the SIMPLEST, quickest & easiest ways to set yourself up as a MASTER EUr-USD trader... WITHOUT the trial and error.
... and much more :)
You’ll also learn the "secrets" of exactly when to trade, when not to trade, the exact price to buy them and the exact price to take profit and close position, it's all here:
