Apiary Fund Blog

Picking a Favorite Market to Trade

[fa icon="calendar"] Jul 24, 2019, 6:02:00 AM / by Lukas MacMacKen

Everyone has that one pair. The first one they look at when they look at their platform for the day. The last pair you look at before signing off for the day. Or, if you only trade one pair, it is that pair. Everyone, whether they realize it or not, has a favorite pair. The favorite pair you have may just happen to be the only pair you’ve traded or one of the few pairs you’ve traded and was the most profitable. No matter how your favorite pair came to be or what it means for your trading, sometimes a little change can do a trader some good, especially when your trading maya be in a slight funk. While Apiary Fund has 29 pairs to choose from, looking at them all can be overwhelming, so having a favorite, or favorite few, can be beneficial.

When you are looking for a favorite pair, or just a new pair to add to your trading repertoire, one of the first things to look at is what kind of movements do you want to see in a pair you trade. If your strategy relies on frequent momentum bursts or if you want to see more regular movements where you can use a support and resistance strategy more often. This type of question is going to be key in what pair to look into trading.

If you are going for large swings in volatility, you have quite a few options to begin looking into strategies for. For those who like to stick with major pairs, GBP/USD, USD/JPY, and USD/CAD are good bets. These pairs average over 100 pips a day on a high to low scale per day. If you want a bit more range in your life, looking at cross pairs may be more your style. Pairs like GBP/AUD, GBP/NZD, GBP/JPY, and GBP/CAD will all sometimes move more than 200 pips a day. These movements can be great for long term trades where a week can make over 500 pips a trade.

For more “tame” markets, major pairs along the lines of EUR/USD and USD/CHF are some of the best bets. These two pairs have a track record of less than 80 pips per day. When it comes to the EUR/USD in specific, trends are easy to come by and the patterns in the pair are typically abundant. To add a bit more variety with these lower ranging pairs, the CAD/CHF and EUR/CHF both also range less than 80 pips typically. For pairs not considered major pairs movements this low are somewhat abnormal. With this, however, comes a bit less predictability in movements even though the range is so tight.

No matter what type of pair you are looking to trade, there are options. Apiary Fund teaches different market conditions so you are able to branch from what you may know to develop different skills that could suit different times. Trading is about adaptation to changing conditions and practicing with different pairs could prepare you for when your favorite pair acts in a similar fashion. No matter how you trade or why you’re looking into different pairs, it can only help you. Whenever you start with a new pair though, regardless the reason, starting with it in a simulated account is a good move.

Topics: Trader Development, Apiary Fund, currency market, pairs

Lukas MacMacKen

Written by Lukas MacMacKen

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