Rather than asking what to trade, you should examine the personality of the instrument (s) you wish to trade to see what it is you want to trade, yes currencies each have their own particular personality: http://www.gaincapital.com/files/CurrencyTrader0905-BD.pdf Cable your a heartbreaker Swissie your a chocolate maker Aussie you keep bouncing along but an Asian girl has stolen my heart.
Liquidity. Eur/AUD is a relatively Illiquid pair. They say Forex trades $2 trillion US notational value per day. EUR/USD trades $600 Million US/ day. OR 30% of that. So the spread will be tighter from .5 to 3 pips. Eur/AUD is perhaps less than 1% of the 2 trillion. So spread could be 5 pips to 15 pips. What base currency is your account in?
ooooooooooo......no i just have a demo account im trying to learn forex trading, thats why I asked, trade equities but now i just want to learn more thank for heads up
I suggest creating a spreadsheet where you calculate the 30 day average High to low absolute value per pair. Then divide that value by the spread. Its a rough "bang for you buck (spread)" estimator anyways. As you are looking to trade Asian hours you may find some opportunities in the yen crosses or the AUD/NZD pairs. Check out news releases here: http://www.forexfactory.com/index.php?page=calendar See if you can make money playing some JPY news (which would be your best bet in finding good activity during the Asian session).
I live in an Asian timezone, usually trade the yen, but avoid the Asian session...gotta have a life. Timeframes - I find that volume charts show up reversal/continuation patterns more accurately than time based charts for short term intraday movements (10 - 30 pips). I also like to look at price in "four x four" i.e. 4 timeframes simultaneously each one four times lengthier than the previous one.
got it,l thanks for the post I think im going to o[pen an forex account with my broker so i can trade after US equities are done after 4pm ESt time thanks for the input, please post more