First Trades

[tradersam]

For someone who is starting out in forex trading, I assume it is best to start analyzing a single pair like EUR/USD, or something similar.

But EUR/USD has such high volume, and there is so much news and analysis for that pair. Would it be better to start with a different pair, perhaps an obscure one that has low volume and is not traded that much? And if so, which one?

[Somya Gabriel]

As forex traders we can never know what price is to "low" and what price is to "high". Don’t be afraid to join a trend. I know that psychologically this can be difficult sometimes. You are always afraid that you will be entering the trend at it's end. This rule is important but must not be followed blindly but rather smartly. Suppose you are day trading the EUR/USD. You know that the average daily range of the pair is 90 or 100 pips. If your system is telling you to go long at a point where the market has already moved 80 pips and place a profit objective of 50 pips, would that be a smart move? Obviously not.

[Sofia.forex]

If you are like me and like hearing the cash register ring often then use day trading strategies. If you don’t mind waiting for profits to accumulate over time then consider using swing trading strategies. This is very important. Trade with what best suits your character. Be true with yourself and recognize what are your needs. My need is the gratification that frequent profits provide, no matter how small. It keeps me going.

[forexboy]

I heard this kind of advice several times where you need to start by familiarizing your self first on a single currency pair. This is to get the rhythm or behavior of that currency type you wish to trade.

[palmvjp]

what kind of capital you had when you started trading, would you advise to start trading with $5,000 ?

[traderkenny]

$5,000 is enough for you to start fx-trading any where you want. however b4 you start trading, you should learn some skill to analysis fx first.
good luck!

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Secretsoftraders.com

[84amy]

My broker acm requires that as a minimum to open an account, I think that 5000 is a good number to start; it is enough to make decent profit and to cover bad trades…

You’ll have time to add more funds later on

[Sofia.forex]

I think $5000 would be risky. Always aim for1:3 risk reward ratio.

[Somya Gabriel]

Yea this ratio is safe. Any number below 1:3 is too risky so the trade should be avoided. Never enter a trade in which the risk-reward ratio is 1:1 or the risk outweighs the reward.

Many experienced trader will only enter trades in which the risk-reward ratio is 1:5 or higher. This requires that the trader wait for a trade with this ratio, but the reward is worth it. A higher risk-reward ratio is a good idea in case the currency does not make the anticipated price movement. However, if the trader uses a lower risk-reward ratio, there is very little room for smaller price movements and the amount of risk will increase.

[mackus]

The pair you choose should be as liquid as possible, like the EUR/USD, but also fit within your trading hours and risk tolerance.