Which forex to buy or sell today?

Forex traders are faced with a whole host of choices before they get into trading itself. Finding their platform, the right CFD broker, and the trading style that suits them, all take time, effort, and energy. As such, it’s natural for some tension to build up during that process.

Traders immediately want to get rid of that tension by putting their effort into action. That means trading immediately and taking the chances that they believe will yield immediate results. But that’s where another issue comes up: what’s the best forex to trade today?

Believe it or not, this may be less of a conundrum than it seems. Traders who have done their research and established their style can go through a simple process of elimination. And while this article can’t answer what to trade today directly, since the answer changes every day it remains online, it can present that process.

Time orientation

Traders differ in the amount of time that they want to spend in each trade. Broadly speaking, the three categories are day traders, swing traders, et position traders (often called investors).

Each of these three types has preferred market conditions and asset types. For instance, an exceptionally quick day trader, such as a scalper, may not consider an exotic pair due to its volatility, generally higher spreads, and low liquidity.

owever, a position trader, who foresees a big shift in the smaller economy, may want to get in and capitalise on a potential long-term trend.

For traders to know what they should trade, they need to know what they want to achieve and when. By deciding this, they can immediately write off a large number of FX pairs and narrow their scope significantly.

What are the forex indicators saying?

Of course, no trading routine is complete without at least some analysis. Even if traders do find an asset that they believe fits their trading style, markets tend to be unpredictable. What’s visible to the eye upon first opening a chart may not reflect what’s actually happening.

However, most forex platforms offer a quick way to fix that. Applying indicators to a platform is an easy way for traders to either verify what they are thinking or rectify a false positive. This allows them to either lock in on an asset, eliminate it as a trading possibility, or correct their trading plan surrounding it.

For forex traders, these are some of the most widely used indicators:

• Relative Strength Indicators
• Moving Averages/Exponential MAs/MA Convergence Divergence
• Bandes de Bollinger
• Stochastic Oscillators
• On-Balance Volume

During this process, it’s also important to apply time orientation principles. Applying the correct time frames and analysing the right segment of the market time-wise are key.

What’s in the forex news?

No market analysis is complete without getting the bigger picture. While charts may react faster to the news than traders do, the latter can still provide valuable insight.

Without understanding why forex charts are moving the way they are, it’s difficult to predict what will happen next. And since trading is usually a predictive activity, this is a necessary step for most traders.

Traders don’t need to become investigative journalists for this. In fact, many platforms have a built-in trade news alert system, and if they don’t, there are many third-party services that can help.

Checking the news will also give traders an idea of what the market will look like. For instance, on report days, regardless of how the report turns out, volatility is expected. For traders who dislike that, it may be better to stay away from the pairs the reports are for. Conversely, traders who thrive when prices are moving rapidly may want to specifically target those assets.

Another tool that helps here is an economic calendar. It’s a tool that contains important economic releases for the next period. It may be a good idea to make note of those and plan around them.

In essence, news tell traders why things are happening, and gives hints on what a trading session will look like. Traders can use this information to see whether it fits their trading style and plan accordingly.

The trader’s strategy

In addition to everything else, there’s usually a specific trading strategy the trader follows, more particular than their trading style. This may revolve around specific entry and exit points, conditions, number of trades, and assets the trader is knowledgeable about.

Traders should act in accordance with their strategies. This means that, if they aim to capitalise on small but consistent movements, particularly present in majors and minors, they should likely stay put in volatile conditions.

But what if some breaking news, like Trump’s tariff announcements recently, for instance, shake up entire market segments? Well, traders don’t need to trade every day. In that case, the answer to which forex to trade today is simple: trade neither.

Alternatively, for traders who really want to trade, even if the conditions don’t match their strategy, it may be a good time to branch out. It’s a much better idea to try something new than to try and force a strategy when the conditions aren’t right. Considering other assets or a different approach may yield results and lead to long-term improvement.

What are traders already familiar with?

In the absence of other options, falling back on something well-known is a solid tactic. Even if none of the previous factors match up, traders may use this to find a trading avenue, which would otherwise be impossible.

For instance, if a scalper trades EUR/USD often, they likely already have some knowledge of the pair’s tendencies. As such, even when both currencies are in flux, they may have gathered enough info passively to correctly navigate the situation.

Signals/trading forex plans

Lastly, for traders who don’t feel confident enough to go through the process described above, trading signal and plan services may provide guidance. Essentially, these services are curated by financial professionals and note which assets are popular at the moment.

Even for more experienced traders, checking these from time to time may be a good idea. It may highlight options that would otherwise be overlooked or simply reduce the mental strain of preparing for trades.

However, these are tools like any others, and they never paint the full picture. For traders who want to improve, these should be used as a reference, not as a full trading guide. Overreliance on them may lead to skill degradation and, of course, losses, since they aren’t always correct.

Conclusion

At the end of the day, what to trade is a highly individual question. Traders can rely on various tools, but what determines everything in the end is the trading strategy they use and the preferences they have. Chasing the hottest asset may yield short-term gains, but it also leads to a lack of consistency and discipline, which can have disastrous consequences long term.

Most strategies are viable if executed correctly. Learning how to do that and operating within the market conditions outlined in the strategy is how most traders achieve market longevity.

Clause de non-responsabilité : This information is not considered investment advice or an investment recommendation, but instead a marketing communication. IronFX is not responsible for any data or information provided by third parties referenced, or hyperlinked, in this communication.