Oct 13 2009

What’s the easiest pair to trade?

I know there are a number of traders who will claim that some pairs are easier to trade than others. Although I do admit that history shows this might be the case, the truth is, no pair is easy to trade. And no pair is the EASIEST to trade. This is my humble opinion and I know others will respectfuly disagree. People will make claims based on hindsight, but as we all know, hindsight can be very dangerous, especially in Forex.

Here’s a fact in Forex. Any pair can have any pattern at any time. Any pair can behave like any other pair at any given moment. No pattern is specific to a certain pair.

So when people say things like AUD/USD is easy to swing trade, or EUR/GBP is easy to scalp, it’s not something that really clicks with me. Frankly I’ve found both those pairs arduous to trade, just as I find all pairs arduous to trade.

Price action applies to all pairs, Support and Resistance apply to all pairs, fibonacci applies to all pairs, and fundamentals applies to all pairs. So you apply the same rules to different pairs, and you get the same result.

Actually, let me take that back. There is an easiest pair to trade. Based on pure mathematics, probability and statistics, I would have to say the easiest pair to trade in fact, is the pair with the lowest spread.

Which is why my advice to all new traders would be: stick with the 4 majors initially.

1 Comments on this post

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  1. francisco gallego said:

    Hi, you are right, people sees smalest spreads are safer to trade, I think that is true, specially in the case of the scalpers, however, I think that there are softer pairs, e.g. not so volatile pairs such as, eur/usd, usd/chf and sometimes usd/jpy have most of the time the smallest standard daviation (size of the candle), therefore, if you choose to place a trade, given certain information (coherent to you) and it is late morning in GB and USA, and you see that the candle is 100 pips tall, you may take this as an additional info to place your trade, and stop, even your target (if you like to place them in any situation). It gets harder (at least for me) when you deal with a GBP/USD or CAD/JPY.

    The other thing that comes to my mind is that one must trade the pairs that have more information available (for the trader), e.g CAD/JPY is mostly about oil prices, because canada produces large quantities and Japan does not and imports almost 100%, on the other hand, this pair is normally very expensive (spread), so it is harder to make a good start.

    October 16th, 2009 at 1:58 pm


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