Unique Tricks to Learn Forex

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Unique tricks to learn forex

To start learning forex, we should mengenalli first about the type of currency. It is one of the main things that should be in the know to learn forex.

There are many currency pairs offered to forex traders, but if you’re a new study, it would be easier to start with the currency pair is called the Major Currency Pair:

  • EUR / USD
  • GBP / USD
  • USD / JPY
There are several reasons which I will point out:
This currency is widely traded, thus providing the necessary liquidity in order to profit from price changes.
Has a small spread, except maybe for the GBP / USD, which often have a higher quota of spreads, due to frequent changes (for example, has a wider price range than any other partner).

They all traded against the U.S. dollar, which automatically suggests that the most active trading hours is during New York trading session – a session with the highest trading volume.
Lastly, there are many Forex trading systems that have been developed for the currency pair, and can be found online.

What currency pairs should be avoided?
Currency pairs that are not public, should be avoided whenever possible for beginner traders as it would require more knowledge if you want to succeed in trading currency pairs.
Here is the focus of the currency pair for traders:
  • Euro (EUR)
  • U.S. Dollar (USD)
  • British Pound (GBP)
  • Swiss Franc (CHF)
  • Japanese Yen (JPY)
  • Australian Dollar (AUD)
  • Canadian Dollar (CAD)
Traders should be as much as possible to avoid a big spread. Spreads vary on each broker. Information on the spread can be viewed on the website concerned broker, or in a special column called the “spread” on the trading platform, or on tables Ask / Bid (in the trading platform as well) by reducing the bid price with Ask.
Example:

In the screenshot, we can figure out a spread USD / CHF = 3 (Ask – Bid = 0.9992-0.9989 = 3)
Spread EUR / USD = 3
Spread EUR / USD = 2
Spread EUR / JPY = 2
Currency with a large spread very rapidly changing, for example, a wide price range, and the price movement of a longer, where the trader is not prepared to be trouble when it comes to trade.

Also a common mistake made by many novice traders is that they try to pay attention to many currency pairs at once. This not only makes the traders are becoming increasingly busy and difficult to manage, but also causes less in-depth analysis on the currency pair to really learn how to “their behavior” from time to time. Currency pairs move in unique ways, reacting to economic events, the form of trends, etc..

With a focus on studying the currency pair at a time, forex traders will have the ability to observe behavior, and learn how to trade more effectively.

Good luck ..

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