As you know, that forex trading is performed in the form of currency pairs. You buy a pair when it is low and sell it when it is high. When you buy a pair, that means you are buying X amount of base currency. New traders in the forex market are always confused about how many forex pairs should they trade or keep an eye on in the first couple of days, weeks, or months of their trading journey as beginners.

Forex Pairs to watch


Choosing which currency pairs to add to your watch list is a personal decision. We all
have certain pairs that we’ve come to know and even pairs that have become our
favorites.

However, I figured I would give you the list of currency pairs on my watch list. This might
be especially useful if you’re new to trading Forex and need some direction on building
a solid watch list.

  • EURUSD
  • GBPUSD
  • USDJPY
  • USDCHF
  • USDCAD
  • AUDUSD
  • AUDCAD
  • AUDJPY
  • NZDUSD
  • NZDCHF
  • EURJPY
  • GBPJPY
  • NZDJPY
  • CADJPY
  • EURNZD
  • AUDNZD
  • EURGBP
  • EURAUD
  • GBPAUD
  • GBPCHF
  • EURCAD
  • GBPCAD
  • CADCHF
  • AUDCHF
  • GBPNZD
  • CHFJPY

This gives me 26 currency pairs to watch, which is more than enough. If you’re just
starting out I would advise choosing half of this amount, so maybe 10-15 pairs.

For Those Just Getting Started


I know a lot of “experts” out there advise on starting with just one or two pairs and then
expanding your selection as you become comfortable. I DO NOT recommend doing
this. In fact, it’s a quick way to blow an account if you’re just starting out.


Here’s why…Even the most experienced and disciplined traders get “itchy fingers” every now and then. In other words, we all want to trade. After all, that’s why we’re here. If you only have one or two currency pairs to watch, the valid price action setups are going to be far and few between. Before you know it you’ll be convincing yourself that setups exist just so you can get in a trade.

Now if you have 10-15 currency pairs to watch, even if you get itchy fingers you at least
have a much greater selection to choose from. Therefore your chances of finding a valid
price action setup increase exponentially. A great selection to choose from means you
can be more selective, which is exactly what we want.

Building Your Forex Pairs List


Like everything else in trading, it’s important that you find the currency pairs that work
best for you. There are a lot more pairs out there than the ones I watch, however, the
ones listed above are the pairs I’ve come to know and understand.


So what’s the best way to build your list?


The best way to build your list is to simply go through each pair and start looking at key
levels in the market. Look back over the last 6 months and take note of how the pair
moves.

Does it produce clear levels? Is it too choppy? Some currency pairs I won’t even
consider simply because they are far too choppy. I don’t mind some “overlap” from day
to day but if trends are hard to follow because the market is too choppy then I’ll move on
to the next pair.

There are far too many currency pairs out there to settle on ones that don’t move in a
way that’s conducive to trading price action (clear support and resistance levels and
trends).

One last note about choosing your currency pairs to trade. Check your broker’s spread
by click “new order” if you’re on MT4. Some brokers have ridiculous spreads on certain
currency pairs. Just be sure not to actually place the order when you do this.

You should also check the spread before every order. I never place a trade without first
making sure the spread is reasonable. This is especially important when the market first
opens on Sunday as well as the three-hour window between the New York session
close and Tokyo session open. There’s nothing worse than jumping in the market only
to find that you’re already down 10 pips.

Thank you for reading so far. I hope it helped you get started on building your watch list. Just remember that it all comes down to finding the currency pairs that you’re most comfortable with.

Happy Trading! Have a good day ahead.