What is Forex Scalping?

Forex scalping is a Forex trading strategy where trades are open for very short periods, typically within 1-5 minute charts. Traders who follow the scalping style are called scalpers.

Scalpers usually execute dozens or even hundreds of trades in a day. The Forex scalping strategy aims to profit from a few pip movements from each trade. Forex scalpers use extremely short timeframes for trading, like 1M (1-minute), 5M (5-minute), and 15M (15-minute) charts.

What Are Forex Scalping Signals?

Forex scalping signals are real-time scalping alerts for trading in the Forex market. Like any other trading signals, scalping signals come with an entry and exit point for fast trades, a stop-loss, and a take-profit level.

Forex scalping signals are generated and delivered by highly experienced experts for traders looking to scale up to profit from a small price movement.

Why Traders Use Forex Signals for Scalping

Traders use Forex signals for scalping to execute hundreds of trades daily without manual analysis. The scalping signals come with technical analysis and high-frequency trading (HFT) strategies, helping traders focus on profit only.

Forex scalping signals are short-term trade signals that need instant execution. Some risky traders use second time frames for scalping, which requires a high skill set but comes with massive risk.

Such high-frequency, disciplined trading in scalping strategies can be nearly impossible for a beginner or mid-level trader. But with short-term scalping signals, you can easily catch profits from a few pips daily.

However, you can trade even major currency pairs faster with Forex scalping signals in a day, which is impossible for a beginner trader.

So, using the accurate Forex scalping signals, any trader can place up to 100 trades within minutes and profit from Forex scalping without doing the technical analysis.  So, basically, with scalping Forex signals, traders can-

• Take hundreds of trades in a day
• Make a quick profit from smaller price movements
• Scalp without technical analysis
• High-frequency Forex trading without market monitoring
• Trade without psychological impact
• Trade major currency pairs faster with Forex scalping signals
• Diversify the account with multiple pairs of trades

Forex Scalping Signals Vs Regular Forex Signals

The main difference between Forex scalping signals and other Forex signals is the timeframe and trade frequency.

Timeframes & Setups for Forex Scalping Signals

1- to 5-minute charts are mostly used for Forex scalping signals. To generate scalping signals, trade analysts use an extremely short time frame- minute charts. And the ideal time frame for Forex scalping is to use the 1M (1-minute) to 5M (5-minute) charts.

Ultra-fast scalpers use the 1M charts, which require instant execution. Some scalping signals often seem to be analysed with 5M charts for more margin in trading with scalping signals.

As Forex scalping needs trades to open and close within a very short time frame, scalpers can make profits within this short time.

Here is an example of a Forex scalp signal:

EUR/USD long at 1.0970
Stop Loss: 1.0966
Take profit: 1.0978
Chart: 1-minute timeframe

Top 3 Indicators Used for Scalping Signals in Forex

To generate Forex scalping signals, many indicators are used based on traders’ styles and preferences. However, after some traders’ queries and testimonials, we found the 3 best indicators for Forex scalping signals.  These are- Fibonacci Retracement, ORB, and EMA.

Fibonacci:

This indicator is widely used in the scalping strategy. This indicator helps to identify the potential support and resistance levels and predict the next pattern in the Forex market.

Fibonacci retracement mainly helps a trader to find out the bounce level. And in Forex scalping, it’s not about predicting long trends — it’s about catching small, short trends with high-probability moves (5–20 pips or ticks).

ORB:

ORB, or Opening Range Breakout, is used to find out the breakout strategy after a new market session. This indicator is mostly used for scalping within the first 15 minutes after the Forex market opening hour.

This means applying some strategies; traders look for a breakout opportunity to profit from the market opening hour.

EMA:

EMA or Exponential Moving Average, is the most common and widely used indicator- every trader knows it. It’s because, unlike regular MAs, EMA helps to identify the most recent price data and the current market condition.

So, for short-term trading like the 5-minute scalping, the 5-EMA or 9-EMA line helps to capture the market trend quickly to profit from scalping.

However, if we take a look at the legendary and world’s best scalper, Fabio Valentini, he follows a different strategy for scalping. Unlike other oscillator indicators, Fabio uses volume indicators, like the Cumulative Volume Delta (CVD).

Recently, in a live trading session with Chart Fanatics, he showed how he uses CVD to predict the buying and selling pressure across a period to find out the extreme scalping opportunities.

Step-by-Step Guide to Scalping Using Forex Signals

Scalping with forex signals can be fast and profitable if done systematically. Here’s how to use Forex signals for scalping:

Prepare Your Trading Platform:
Start by selecting 1 or 2 major currency pairs for Forex scalping signals, like EUR/USD or GBP/USD, and use a low-latency broker for fast execution.

Set up Your Charts:
Set up M1 or M5 charts with key indicators such as EMA, RSI, or Bollinger Bands to track market movements.

Monitor Forex Scalping Signal:
Once a signal arrives, quickly verify market conditions, including spread, liquidity, and session timing, to align with the signal to confirm a high-probability trade.

Execute Trades:
Enter the trade immediately after confirmation, applying the suggested stop-loss and take-profit while keeping the trade size small to manage risk. Monitor execution to avoid slippage or delayed fills.

Stay Alert:
During the trade, remain alert and be ready to exit early if spreads widen or volatility spikes unexpectedly. Record each trade outcome and note any deviations from the signal to improve future decision-making.

Keep a Trading Journal to Review & Improve:
At the end of the session, review all trades to assess signal accuracy, profitability, and trading costs. Identify setups that consistently perform well and refine your approach while maintaining discipline and avoiding over-trading.

Risk Management in Forex Signal Scalping

Scalping amplifies both opportunity and risk because of the speed and frequency of trades. Here are key risk-management rules while scalping with Forex signals:

• Lot size/Leverage control: Use a smaller lot size per trade, as many trades accumulate risk.
• Stop-Loss Discipline: Every trade must have a defined stop-loss; without it, one large loss can wipe out your entire account.
• Cost Awareness: Spreads, commissions, and latency slippage matter a lot in scalping. If the cost per trade is too high, profitability is hard. 
• Session & Liquidity: Trade during high-liquidity times (London, New York); avoid low-volume sessions where slippage is higher.Avoid Emotional Over-trading: Many trades can lead to fatigue; when mistakes creep in, stop the session.

How to Choose a Reliable Forex Scalping Signal Provider

Proven performance track record with transparency and active support must be considered while choosing the Best scalping Forex signals providers.

• Results Transparency: A reliable scalping signal provider publishes a verifiable track record, including entry and exit points, risk metrics, and historical performance. Check for signal performance records from Myfxbook or FXBlue.
• Latency & Signal Delivery Method: Scalping is highly time-sensitive. Signals must be delivered on time. Even minor delays can turn a high-probability trade into a loss. Providers with real-time signal delivery and low latency trading signals help you place the trade immediately.
• Broker Compatibility: Ensure the signal provider’s signals are compatible with your broker’s execution speed, spreads, and potential slippage. Misalignment between signals and broker execution can cause huge losses, especially in high-frequency trading. 
• Risk Management Settings: A strong provider includes recommended stop-loss and take-profit levels and offers guidance on trade positions. Proper risk management is essential in scalping, as high trade frequency can quickly turn into losses without disciplined controls.
• Regulation & Credibility: Prefer providers that collaborate with regulated brokers and offer client testimonials, reviews, or trial periods. SureShotFX Algo offers the best automated trading solution with scalping signals.
• Community & Customer Support: Choose a signal provider with a responsive and human support system, and timely updates help traders optimize performance and learn while trading.
• Signal Accuracy: Check and review the signal accuracy rate before going for any premium subscription. For scalp trading, signal accuracy plays a crucial role.

Common Mistakes in Using Scalp Signals & How to Avoid Them

Blindly following signals without checking brokers’ fees and costs, and overtrading are some common mistakes traders make while scalping with Forex signals.

Here’s how to sidestep these mistakes:

• Blindly Following Every Delivered Signal: Never blindly follow every signal without checking your trade setup and total capital.
• Over-Trading: Many signals might tempt you to overtrade. Never ever do that. Use only high-probability Forex signals for scalping.
• Ignoring Brokers’ Fees: Following signals does not mean you ignore brokers’ fees and costs. Always monitor spreads, fees, and latencies.
• Holding Trade Positions: If a trade is giving you profits, it does not mean holding it for a longer position. Scalping is short-term, and you never know when the market trend shifts.
• Trading Minor/Exotic Pairs: Always stick to major currency pairs for scalping Forex signals due to tight spreads and higher liquidity. EURUSD, USDJPY, and AUDUSD are some profitable major pairs for scalping with Forex signals.

Best Forex Scalping Signal Providers in 2025

SureShotFX Algo is the best-known scalping EA, backed by the most powerful indicators- EMA (Exponential Moving Average) and ATR (Average True Range), and other algorithms. SSF Algo strictly follows trending signals and provides trade signals at pullbacks mostly.

Verified on Myfxbook, with a notable 95% win rate and the best community feedback,  SureShotFX Algo is delivering 2-3 profitable scalping signals daily on the SSF Algo Telegram Channel.

However, SSF is featured by top financial news portals such as Digital Journal and Street Insider, making it a leading signal provider with a top-notch support system.

Oh! SureShotFX is currently running an exclusive Halloween Sale, offering up to 60% off on all VIP signal plans, suitable for different levels of traders. And the free VIP channel access with an Eightcap deposit is available, of course.

Final Wrap

Trading using Forex scalping signals requires strict entry and exit strategies. To profit from these short-term trades, you need highly accurate Forex signals for scalping.

However, SureShotFX (SSF) provides high-accuracy Forex scalping signals- best suitable for beginners and seasoned traders. Join the SSF supporting community on Telegram, where thousands of traders are profiting by using signals.

To learn more about SSF signals, contact SSF support, available 24/7 for your assistance.

FAQs

The post Ultimate Guide to Forex Scalping Signals for High-Frequency Trading Success appeared first on SureShotFX.

What is a Forex Pair?

A Forex pair is a combination of 2 different foreign currencies used in the Forex market for trading. In Forex trading, currencies are always traded in pairs. And every currency pair has a symbol or symbolic name for easy identification.

The first currency of a currency pair is called the base currency, and the second currency is called the quote currency. While trading currencies, you either buy the base currency and sell the quote currency or vice versa.

For example, GBP/USD is a currency pair where GBP (British Pound) is the base currency and the USD (US Dollar) is the quote currency.

Each pair works as a single unit. And you can profit or lose from the price fluctuations of the exchange rates between those currencies.

Different Types of Forex Pairs- Majors, Minors, and Exotics

There are mainly 3 types of Foreign currency pairs based on liquidity and USD involvement. They are-

1. Major Currency Pairs- Most Traded Pairs

These are the pairs always including the USD (US Dollar), best known for high liquidity. These are the best forex pairs for beginners. However, professional advanced traders also trade on these currency pairs.

There are mainly 7 major currencies, and when making a pair, they come with USD, such as- the British pound (GBP/USD), Euro (EUR/USD), Australian dollar (AUD/USD), Japanese yen (USD/JPY), Swiss franc (USD/CHF), New Zealand Dollar (NZD/USD), and Canadian Dollar (USD/CAD).

2. Minor Currency Pairs- Best for Institutional Traders

These are the Forex pairs without any USD (US Dollar). Minor pairs are created by combining 2 major pairs except USD, such as EURGBP (Euro/British pound), EURCHF (Euro/Swiss Franc), GBPJPY (British pound/Japanese Yen), etc.

Due to comparatively higher spreads, like 1 to 2 pips movement, most of the institutional professionals and hedgers trade on these minor pairs.

3. Exotic Currency Pairs- Lower Liquidity, Higher Spreads

These are the pairs combining one major currency with another from a developing or less-traded country. Such as EUR/TRY (euro/Turkish lira), USD/TRY (US dollar/Turkish lira), African Rand (USD/ZAR), etc.

Traders rarely trade on exotic pairs due to higher spreads and low liquidity pools. And most often, trading exotic pairs leads to improper order fills, causing huge losses sometimes.

Note: Beginner traders without any trading and market knowledge sometimes seem to trade exotic pairs, making one of the biggest mistakes in their trading journey.

What Makes a Forex Pair “Best” to Trade?

Active trading sessions, lower spreads, and higher liquidity make a pair the best to trade in Forex. Let’s break them down how:

Liquidity

The Forex market itself is the largest liquid market. But there are around 180 currencies. And liquidity differs a little bit among these pairs. Gold (XAU) and USD have the highest liquidity pool, making them the best Forex currencies.

As we know, higher liquidity means higher opportunity. If you trade a pair with higher liquid assets, you can enter/exit trades, avoiding slippage. So, make sure to trade the pairs with the most liquidity across all the sessions.

Trading Session

The trading session, or time of trading, is crucial to finding the best pair to trade. Peak trading time is different for different trading sessions.

For example, the minor currencies like the NZDJPY or AUDJPY are the best for trading in the Asian session, whereas GBPUSD is best for trading in the London session.

Volatility

Volatility comes from the pip movement in the Forex market. Some forex pairs are stable with lower volatility with fewer pip movements, and some are not stable and highly volatile with higher pip movements.

For example, USD is the most stable currency with higher liquidity. Contrarily, exotic pairs are mostly volatile and nearly impossible to predict, with larger pip movements increasing the spreads.

Top 5 Best Forex Pairs to Trade in 2025

EUR/USD, GBP/USD, AUD/USD, USD/JPY, and USD/CHF are the best Forex currency pairs to trade in 2025. So, mainly the best pairs. These Forex pairs are also the most traded in the Forex market.

1. EUR/USD (Euro vs US Dollar)

EURUSD is the most traded Forex pair in the world. Nickname for this pair is FIber. It has higher liquidity, as the currencies in this pair represent the two largest economies. This pair is best for trading during the London and New York sessions.

According to the BestBroker report, the EUR/USD pair has recorded a total of $1.71 trillion in daily trade volume, which represents a 7.6% increase.

And August 2025 data shows the EURO alone holds 20.6% trade dominance in the Forex market, which makes it the most traded Forex pair.

Changes in the currency value of the Euro and USD can influence the volatility of this pair. Besides, European Central Bank (ECB) policies and US Fed announcements can impact the volatility.

2. GBP/USD (British Pound vs US Dollar)

Here comes another best Forex pair to trade, especially during the London and overlap sessions.

Pound is known to be the oldest currency and seems to be traded with more than 100+ pips daily. It’s said to be ideal for trend or breakout strategies, but beware of higher spreads during UK news.

3. AUD/USD (Australian Dollar vs US Dollar)

Nicknamed “Aussie,” this pair is one of the best-traded pairs. This pair often seems to be influenced by the commodity price changes, particularly Gold (XAU) and China’s demand.

This pair is best to trade during the Asia and US overlap sessions. However, news from the US, Australia, and even China can sharply move the prices.

4. USD/JPY (US Dollar vs Japanese Yen)

This Forex pair is also known as the Yen pair, and its nickname is Gopher. The USDJPY pair is active during the Asian sessions. So, trading USDJPY in the Asian and NY sessions gives more flexible trading windows.

US data, events, and announcements from the Bank of Japan influence the volatility of this currency pair. Technically, this pair shows large pip movement. But with proper risk setups and trading strategies, trading the USDJPY pair can be profitable too.

5. USD/CHF (US Dollar vs Swiss Franc)

The nickname for this currency pair is the Swissie or Swiss Franc. This Forex pair is often considered the safe-haven pair, so it is ideal for hedging and institutional professionals. 

The London session is the best for trading the UCHF pair. However, the London-New York overlap session is also the best time to trade the Swissie pair.

The Swissie pair is also known for the lowest interest rate worldwide after the Swiss National Bank interest announcements, making this pair a safe haven and one of the best pairs for carry trading and hedging.

Most Profitable Forex Pairs

Major Forex pairs tend to be the most profitable currency pairs. Profitability depends on trader behavior and trading styles. So, if your goal is to find a profitable Forex pair, you need to have at least a medium to experienced level of trading experience in the forex market and knowledge of the forex pairs.

Though profitability depends on the trader, major Forex pairs, which means the pairs with the USD (US Dollar), are considered to be the most profitable currency pairs.  

Among these, EURUSD, GBPUSD, and USDJPY are the most profitable due to higher liquidity and lower spreads.

Some other reasons include-

Most Traded Forex Pairs in 2025

As of Q2 2025, EUR/USD, GBP/USD, and USD/JPY remain the top traded pairs globally. The table below shows the most traded currency pairs for different Forex markets.

In the UK Forex market, EUR/USD remained the most traded Forex pair, exceeding $1 trillion daily trade volume, which was $797.5 billion in 2024.

In the US market, the same EUR/USD was ranked as the most traded pair with $296.4 billion of daily trade volume, which was $239.8 billion on average in 2024.

The Singapore Foreign Exchange Market Committee (SFXMC) shows that USD/JPY was the most traded Forex pair in Q2, 2025, with $5.7 trillion daily trade volume, which was $6 trillion in October, 2024.

The Hong Kong Forex Market has seen USD/RMB (US Dollar vs Chinese Yuan Renminbi) to be the top-performing currency pair in 2025, along with USD/HKD (USD vs Hong Kong Dollar) and USD/JPY.

The Tokyo Foreign Exchange Market Committee (TFEMC) reveals that USD/JPY was the most traded pair in Japan in April 2025, with a daily trade volume of $284.7 billion on average. And it’s a 51% cruise from the 2024 daily trade volume.

Which Forex Pairs Are Best for Different Trading Styles?

Scalpers prefer USD/JPY and NZD/USD; day traders favor EUR/USD; swing traders go for major pairs; position traders use USD/CAD and EUR/CHF. Besides, based on different trading styles and market movements, you can trade different Forex pairs. That’s why choosing the best Forex pair depends on when and how you are trading.

Here is the breakdown for different trading styles:

Best Forex Pairs for Scalping

Though for scalping, gold (XAUUSD) is considered the best pair for scalping. But for Forex pairs, USD/JPY and NZD/USD are the best Forex pairs for scalping-style trading.

Scalpers typically use 1- to 15-minute timeframes. Their trading style is mainly pip-focused. So, scalpers prioritize technical analysis over fundamentals. Beginners in scalping or experienced professionals trade USDJPY and USDNZD for scalping.

Best Forex Pairs for Day Trading

USDJPY, EURUSD, and AUDUSD are the best Forex pairs for day trading. Day traders, or intraday traders, mainly trade Forex, focusing on the trade sessions.

Trading these pairs during the London and New York sessions can ensure the best profits from these pairs. For beginners, EURUSD is the best pair for a day trading style, and for professionals, GBP or JPY is the best. Besides, SSF day trading signals can be profitable for beginner Forex traders.

Best Forex Pairs for Swing Trading

For swing trading, choosing the major pairs works best for any type of trader. However, the swing trading style does not need session focus. Unlike scalping, swing traders mostly use 1H (hour) to 4H timeframes.

Most of the professional traders trade the major Forex pairs, and recent data shows that many beginner retail traders trade minor pairs for swing trading styles.

Best Forex Pairs for Position Trading

Position trading requires holding trades for weeks to even months. So, highly volatile pairs are not suitable for this trading style. Beginners don’t usually do position trading.

Mostly highly professional traders, advanced traders, or professional hedgers or speculators from Banks and Financial Institutions (BFI) use position trading for portfolio management and hedging.

Position traders choose pairs based on their strategies, fundamental analysis, and institutional data. So, technical analysis or volatility shifts don’t matter much for position traders.

However, USDCAD, EURCHF are known to be the best currency pairs for position trading.

How to Choose Profitable Forex Pairs?

Major news events, geopolitical news, and trade sessions must be considered to choose profitable currency pairs. No matter if you are a beginner or an advanced professional trader, the following factors are a must to consider when you choose the pair for trading:

• Trade Sessions & Your Time Zone
The time zone from where you are trading is crucial to picking the profitable Forex pairs. For example, you live in London. So, according to your time zone, trading GBPUSD will be the most profitable pair for you to trade.

Besides, trading during the overlap sessions is best for the major pairs.

• Central Bank Divergence & Interest Rate Gaps
Different announcements from the central bank and interest rate decisions can shift the market volatility. So, based on your regional news events, make sure to pick the best currency pair.

• Commodity Linkages
AUD, CAD, and NZD pairs are largely influenced by commodity price changes, such as oil, gold, etc. So, make sure to check the news or price changes while trading these pairs.

• Geopolitical Events
Sudden events like the Ukraine-Russia critical situation or the COVID-19 pandemic, etc., can influence the market movement, causing volatility shifts. So, make sure to trade more carefully during such major geopolitical or economic events.

Tips to Choose the Best Forex Pair for You

Choosing the major pairs is the best and most evergreen tip. USD pairs are the most stable currency pairs for trading.

Such other expert advice is as follows

Final Words

Choosing the best Forex pairs to trade requires your trading skills and the trading session when you trade. Besides, to be in the safest zone is to trade the major pairs only for profitable trading.

However, solid risk management strategies, like using proper stop-loss and take profit, and never risking more than 1% of your total capital, are key to successful Forex trading.

Well, if you are a beginner and still learning Forex trading, you can try SureShotFX signals for profitable trades. With 99% accuracy and a previous performance record, SSF signals are making the edge among Forex traders, offering both free and paid VIP Forex signals.

For more information, contact the SSF support team, available 24/7 for you.

FAQs

The post Top 5 Best Forex Pairs to Trade for  Beginners in 2025 appeared first on SureShotFX.

• What a Forex currency pair is and how it works.
• How major, minor, and exotic currency pairs behave in the market.
• How to identify the best currency pairs to trade based on your trading style—whether you’re a day trader, scalper, or swing trader.

By the end of the blog, you’ll have a clear understanding of foreign currency pairs and be ready to choose the right currency trading pairs for your Forex trading strategy.

What is a Currency Pair in Forex Trading?

A currency pair is the quotation of two different currencies, showing how much of one currency is required to buy one unit of another. In Forex trading, currencies are always traded in pairs because every trade involves buying one currency while simultaneously selling another.

This currency pairing system allows traders to profit from fluctuations in currency values by predicting whether a currency will strengthen or weaken against another.

A currency pair is presented as a symbol of a three-letter currency code set by ISO. This pair symbol mainly defines three essential components:

• Base Currency: The first currency in the pair.
• Quote Currency: The second currency in the pair.
• Exchange Rate: The value at which the base currency can be exchanged for the quote currency.

For example, you are trading the EUR/USD currency pair.

• EUR (Euro) is the base currency
• USD (US Dollar) is the quote currency 
• The Exchange Rate depends on the market trend. If EUR/USD = 1.10, buying 1 Euro requires 1.10 U.S. Dollars.

If the price rises to 1.12, the Euro strengthens against the Dollar. If the price falls to 1.08, the Euro weakens against the Dollar. Understanding these movements helps traders anticipate potential profits or losses depending on market direction.

Why Currency Pairs Are Important in Forex Trading?

Foreign currency pairs are important because they provide the framework for comparing the value of one currency against another, enabling speculation on exchange rate fluctuations. No currency is traded in isolation; every transaction involves simultaneously buying one currency and selling another.

Here are some key benefits of trading currency pairs:

• Profit from price fluctuations: Every Forex trade involves buying one currency while selling another, creating opportunities to earn from market movements.
• Access high liquidity markets: The Forex market trades over $7.5 trillion daily, making major currency pairs like EUR/USD highly liquid and easier to enter or exit.
• Diversify investment strategies: Traders can hedge risk by trading minor and exotic currency pairs, which behave differently from major pairs.
• Benefit from predictable patterns: Major currency pairs are often influenced by global economic data like GDP growth, interest rates, and employment reports, allowing for better analysis.

Difference Between Base Currency and Quote Currency

Every Forex currency pair consists of two currencies: the base currency and the quote currency. Understanding the difference between them is essential because it determines how trades are executed and how profits or losses are calculated.

Here is a clear comparison of base currency vs quote currency:

What are Major Currency Pairs in Forex?

Major currency pairs are the most traded currency pairs in the foreign exchange (Forex) market. These pairs always include the U.S. Dollar (USD) on one side, paired with another leading global currency such as the Euro, British Pound, or Japanese Yen.

They dominate the Forex market due to high liquidity, tight spreads, and predictable price movements, making them ideal for both beginners and professional traders. There are 7 major currency pairs in Forex trading. These pairs represent the world’s largest economies and account for the majority of daily Forex transactions.

Here are the 7 most popular major currency pairs:

Pro Tip: Beginners often start with EUR/USD because it is highly liquid and has predictable movements.

Why Do Traders Choose Major Currency Pairs?

Due to higher liquidity and stable market trends, most of the traders, either beginners or professionals, prefer major forex pairs. Besides, major pairs or the USD pairs offer lower spreads, causing less trade slippage.

Here are some key characteristics of the Forex Major Pairs:

• High Liquidity: Major pairs are easily bought and sold without significantly affecting prices.
• Tight Spreads: The difference between buy and sell prices is small, leading to lower trading costs.
• Influenced by Economic Data: Their rates are highly responsive to factors like interest rates, economic growth (GDP), inflation, and unemployment reports.
• Sensitive to Global Trends: As global reserve currencies, their movements often align with worldwide economic patterns.
• High Trading Volume: The most traded pair, EUR/USD, involves the Eurozone and the US, two of the largest Western economies.
• Less Susceptible to Manipulation: Due to large trading volumes, major currency pairs are less prone to manipulation.

What are Minor Currency Pairs in Forex?

Forex minor currency pairs are currency pairs that do not include the U.S. Dollar (USD). Instead of the USD, these pairs consist of two other major currencies,  such as the Euro (EUR), British Pound (GBP), Japanese Yen (JPY), or Swiss Franc (CHF). They are also known as cross-currency pairs or simply “crosses.”

These pairs offer attractive trading opportunities, especially for traders looking to diversify away from USD-centric trades. However, they are generally less liquid than major pairs and come with slightly wider spreads, meaning trading costs can be higher. There are 28 commonly traded minor currency pairs in the Forex market.

Here are the most popular Forex Minor currency pairs:

Pro Tip: Traders often focus on EUR/GBP and GBP/JPY to capture medium volatility moves influenced by regional economic trends such as ECB policies or UK market news. Due to being traded the most among minor pairs,  EUR/GBP and GBP/JPY are nicknamed “Chunnel” and “Guppy,” respectively.

Why Do Traders Choose Forex Minor Currency Pairings?

Traders choose minor currency pairs (cross pairs) to diversify beyond the U.S. Dollar and capture opportunities in global markets. While they are less liquid than majors, they offer unique benefits.

Here are some key characteristics of the Forex Minor Pairs:

• Diversification from the USD: Minor pairs reduce reliance on U.S. economic news by offering opportunities in other economies (e.g., EUR/JPY reflects Europe vs. Japan).
• Moderate Volatility: Minors are more volatile than majors but less extreme than exotics, offering a balanced risk-reward profile.
• Regional Trading Opportunities: Events in Europe, the UK, or Japan can create profitable setups that don’t depend on the U.S. market.
• Higher Potential Swings: Wider price movements can lead to more significant profit opportunities for skilled traders.

List of 28 Minor Pairs in Forex

1. EUR/GBP
2. EUR/CHF
3. EUR/JPY
4. EUR/AUD
5. EUR/CAD
6. EUR/NZD
7. GBP/CHF
8. GBP/JPY
9. GBP/AUD
10. GBP/CAD
11. GBP/NZD
12. CHF/JPY
13. AUD/JPY
14. AUD/CHF
15. AUD/CAD
16. AUD/NZD
17. CAD/JPY
18. CAD/CHF
19. NZD/JPY
20. NZD/CHF
21. EUR/SEK
22. EUR/NOK
23. EUR/DKK
24. GBP/SEK
25. GBP/NOK
26. CHF/SEK
27. AUD/SGD
28. SGD/JPY

What are Exotic Currency Pairs in Forex?

Exotic currency pairs combine one major currency (such as USD, EUR, or GBP) with the currency of a smaller or emerging economy (such as Turkey, Mexico, or South Africa). Examples include USD/TRY (U.S. Dollar / Turkish Lira) or USD/ZAR (U.S. Dollar / South African Rand).

Exotics are less liquid, more volatile, and carry wider spreads compared to majors and minors. They are usually traded by experienced traders who are comfortable with higher risk. There are about 25 commonly traded exotic currency pairs in the Forex market.

Here are some of the most popular Forex exotic currency pairs:

Pro Tip: Exotic pairs can deliver large price swings, but they require caution. Traders should always manage risk carefully due to low liquidity and unpredictable market behavior.

Why Do Traders Choose Forex Exotic Currency Pairings?

Traders choose exotic forex currency pairings to potentially profit from higher volatility, unique trading opportunities influenced by emerging market dynamics, and portfolio diversification. Exotics are not for everyone, but traders who seek high-risk and high-reward opportunities often turn to them.

Here are some key characteristics of the Exotic Pairs:

• Higher Volatility: Exotic pairs can experience significant price swings, creating opportunities for traders to profit from large fluctuations. 
• Unique Trading Opportunities: These pairs offer chances to trade on the specific political and economic events of emerging markets, which can be distinct from those affecting major economies. 
• Portfolio Diversification: By including exotic currency pairs, traders can diversify their portfolios beyond more common major and minor pairs, potentially reducing overall risk. 
• Potential for High Returns: The combination of higher volatility and unique market dynamics can translate into greater profit potential compared to less volatile pairs.

List of 25 Exotic Pairs in Forex

1. USD/TRY
2. USD/ZAR
3. USD/MXN
4. USD/HKD
5. USD/SGD
6. USD/SEK
7. USD/NOK
8. USD/DKK
9. USD/CZK
10. USD/HUF
11. USD/PLN
12. USD/THB
13. USD/IDR
14. USD/MYR
15. USD/PHP
16. USD/KRW
17. EUR/TRY
18. EUR/ZAR
19. EUR/SEK
20. EUR/NOK
21. GBP/ZAR
22. GBP/SEK
23. GBP/NOK
24. AUD/SGD
25. JPY/SGD

Major Currency vs. Minor Currency vs. Exotic Currency

To understand which pairs suit your trading style, here’s a side-by-side comparison:

How to Choose the Best Forex Currency Pairs for Trading?

Choosing the right Forex currency pair depends on your experience level, trading style, and risk tolerance. Not all pairs are suitable for every trader. Here’s how to decide:

If You’re a Beginner:

Beginners should focus on major currency pairs because they are highly liquid, predictable, and have lower spreads. Forex pairs are the most stable currency pairs with easy market access.

The most traded pair in the world, EUR/USD, is often the best starting point because it has plenty of market analysis available, and its movements are relatively stable. However, beginners are highly suggested not to start with exotic pairs.

Best Currency Pairs for Beginners:

• EUR/USD (Euro / U.S. Dollar)
• GBP/USD (British Pound / U.S. Dollar)
• USD/JPY (U.S. Dollar / Japanese Yen)

Why Beginners Should Choose Major Currency Pairs?

• Easy to analyze with plenty of educational resources.
• Tight spreads mean lower trading costs.
• Less volatile compared to minor and exotic pairs.

Pro Tip: Stick to one or two pairs at first. Master their behavior before expanding your trading portfolio.

If You’re Intermediate:

Either beginner or intermediate level of traders, it’s always encourtaged to trade the major pairs for profitable trading.

However, Intermediate traders can explore minor (cross) pairs to diversify away from USD-centric trades and take advantage of moderate volatility. Cross pairs like EUR/GBP or GBP/JPY offer attractive swings and are influenced by regional events.

Best Currency Pairs for Intermediate Traders:

• EUR/GBP (Euro / British Pound)
• EUR/JPY (Euro / Japanese Yen)
• GBP/JPY (British Pound / Japanese Yen)
• AUD/JPY (Australian Dollar / Japanese Yen)

Why Intermediate Traders Should Choose Minor Currency Pairs?

• Offer higher volatility and profit potential than majors.
• Allow exposure to different economies beyond the U.S.
• Help develop more advanced trading strategies like correlation trading.

Pro Tip: Keep an eye on regional economic news such as Bank of England or ECB rate decisions. These often drive minor pairs more than global news.

If You’re Advanced:

If your goal is portfolio diversification or speculation for institutional trading, you can trade exotic currency pairs. These pairs provide high volatility and big price swings, but they come with wider spreads and unpredictable market trends.

Best Currency Pairs for Advanced Traders:

• USD/TRY (U.S. Dollar / Turkish Lira)
• USD/ZAR (U.S. Dollar / South African Rand)
• USD/MXN (U.S. Dollar / Mexican Peso)
• EUR/TRY (Euro / Turkish Lira)

Why Advanced Traders Should Choose Exotic Currency Pairs?

• Large movements can generate substantial profits in short timeframes.
• Provide access to emerging market currencies.
• Ideal for traders who can manage volatility and use advanced tools like hedging or algorithmic trading.

Pro Tip: Always use tight stop losses when trading exotics. Sudden political or economic shocks can cause massive swings.

How to trade Foreign Currency Pairs in 2025?

Trading currency pairs means buying one currency while selling another to profit from price changes. If you’re new or unsure where to start, SureShotFX makes trading much easier by providing entry, stop-loss, and take-profit levels.

Even better, Telegram Signal Copier (TSC) can automatically execute these signals in your MT4/MT5 account, saving you time and reducing mistakes.

Here’s a step-by-step guide to help you trade Forex pairs effectively:

• Learn How to Read a Currency Pair: Understand which currency is the base and which is the quote. This helps you interpret price movements accurately.
• Choose Your Currency Pair: Pick the pair that fits your trading strategy, whether it’s a major, cross, or exotic pair. But if you can’t decide which pair you should trade, then SureShotFX signals guide you with top-performing pairs.
• Decide on a Trading Style: Determine whether you want to trade scalping, day trading, swing trading, or long-term positions.
• Analyze the Market: Use technical analysis, fundamental analysis, or a combination to find potential trading opportunities.
• Place a Trade: Enter your position based on your analysis and the signals you follow, setting proper stop-loss and take-profit levels.
• Manage Risk: Decide the trade size and ensure it aligns with your risk tolerance to protect your capital.
• Monitor and Exit the Trade: Track your trade’s progress and close it manually if needed, or let the signals and TSC handle it automatically.

Conclusion:

Understanding foreign currency pairs is essential for building a strong foundation in Forex trading. By knowing the differences between majors, minors, and exotics, you can choose the right pairs to match your trading style—whether day trading, scalping, or swing trading.

Start with majors, explore minors as you gain experience, and venture into exotics only when confident in your risk management skills.

Ready to trade the best currency pairs today? Start profitable trades with SureShotFX!

FAQs

The post What are Foreign Currency Pairs? Majors, Minors, and Exotics appeared first on SureShotFX.

Prop Traders’ Strategy 101

If you’re new to prop trading, it’s important to think about how to manage risks. You don’t want to lose a lot of money and breaching your drawdown limit. Learn about the markets and make strategies that fit your goals and the risk you can handle. You can also use tools like SureShotFX Copier that trades automatically to help you save time. It helps you copy trades from SureShot fx VIP channels, where a veteran trade team, provides highly profitable set ups.

Many prop traders have passed their prop challenges, using our signals and copier. If you know when to get in and get out from the market, then passing prop challenge is a piece of cake to you with SureShotFX signals.

Prop trading can be a way to make money, but you need to know a lot and have experience to be successful. To trade with a proprietary trading firm successfully, follow these steps:

[1] Understand Risk & Profit Targets
The firm sets targets for how much risk and profit you can take. Stick to these targets to stay within the firm’s risk limits and make the most profit. Violating these targets can lead to the firm closing your trades, suspending you, or taking disciplinary actions.

[2] Familiarize Yourself with the Firm’s Tools & Strategies
Learn the trading tools and strategies provided by the firm, such as order types and charts. Practice using these tools and strategies before you start trading.

[3] Know the Market
Understand the market, its trends and movements. learn how you can identify potential trading opportunities and be aware of the risks. You must always have the plan to manage those risks.

[4] Follow the Firm’s Rules
Fourthly, you must at all times follow the rules shared by your chosen prop firm. To reach your profit target and pass your prop challenge, following and maintaining all the rules given by your prop firm is necessary.

You can easily manage your drawdown limits without needing to stress while trading. SureShotFX Guardian. You can get alerts in MT4/MT5 app and in Telegram and check your account status from telegram anytime, anywhere!

You must understand the firm’s trading rules and violation triggers properly. Above all, stay informed about the market and upcoming news events. By following these guidelines, you can increase your chances of success when trading with a proprietary trading firm.

How to Choose Strategy for Prop Trading?

When engaging in proprietary trading, selecting a strategy that is best suited to the prop firm rules, risk tolerance and market conditions is paramount.

⚫ When you are back-testing or selecting your strategy for your prop fund challenge, you must consider Risk Tolerance and Market Conditions. As different prop firms have different loss limits and rules, pick a strategy that matches yours.

Using short stop losses and confirming your trade set up from different timeframes can reduce risk. You can also choose to trade with SureShotFX’s signals. Our traders analyse all set up in different timeframes to confirm the trade set up, we also have a risk management guideline that will help you win your prop challenge easily!

⚫ Focus on Important Levels and Avoid News Releases. Some prop firms will not allow you to trade during high-impact news. So always try to trade from significant price levels. Avoid trading during major news announcements to minimize risk.

⚫ You should always trade with the trend. As many veteran traders says, “Trend is your friend.” So, avoid relying on lagging indicators. Try to identify the trend and trade only when market conditions are in your favor.

In essence, select a strategy that suits your risk tolerance and trading goals. Take time to research and evaluate different strategies to find the one that works best for you.

Research and Strategy Development
One of the fundamental pillars of success in prop trading is a well-defined trading strategy. Take the time to thoroughly research and understand various trading strategies. Choose the ones that align with your trading objectives. The key here is to be well-prepared. Your strategy should be tested and refined before you start trading with real capital.

Risk Management
Prop traders need to be Master of Risk Management. Unexpected market conditions can lead to losses, and that’s where risk management comes into play. Employ techniques to limit losses and protect your capital in any situation. Being prepared for the worst-case scenario is essential for long-term success.

Continuous Education
Education is a never-ending journey in the world of trading. To excel as a prop trader, you need a deep understanding of the markets and the strategies you intend to use. Keep learning, stay updated, and adapt to market changes.

Practical Aspects to Consider as Prop Traders

Consistency and Discipline
Your journey as a prop trader doesn’t end once you’ve developed a successful strategy and secured capital. In fact, it’s just the beginning. To maintain your success, you must remain disciplined and consistent in your approach. Remember that not losing money is just as important as making profits.

Patience and Adaptability
Markets are dynamic, and they can change unexpectedly. Patience is a virtue in prop trading. Be ready to adapt to shifting market conditions and adjust your strategies when necessary. Keep an eye on the markets and be prepared to make changes when needed.

Finally…

Becoming a successful prop trader is a rewarding endeavor, but it requires dedication and a structured approach. The journey begins with thorough research, strategy development, risk management, education, and sufficient capital. However, it doesn’t end there. Consistency, discipline, patience, and adaptability are essential for long-term success.

Prop traders must always stay vigilant and adhere to the rules and strategies they’ve developed. In the world of trading, where the only constant is change, continuous learning and adjustment are your best allies. By following these guidelines, you can embark on your journey as a prop trader with confidence and increase your chances of achieving success in this exciting field.

The post Prop Traders Strategies You Should Use appeared first on SureShotFX.

Forex is a very popular financial market because of its easy access, availability, low capital, fast returns, and so on. On the other hand, forex market also carries questions about its volatility, manipulation, complex strategies, etc. Before diving into the topic, let’s have a brief idea about forex trading.

What is Forex Trading?

The foreign exchange currency market is also known as the forex market. In this market, around $6 trillion in volume is being traded every day. So, you can understand how big the market is! Forex trading involves exchanging currencies as a pair. In a pair, the first currency is called the base currency and the last one is called the quote currency. Basically, you are involved in buying and selling currencies, commodities, indices etc. in forex market.

The Pros and Cons of Forex Trading

If you are considering forex trading as a full-time job or side income source, you need to check out the advantages and disadvantages of forex trading before starting it. You will be able to take errorless decisions if you are well aware of forex trading. So, what are we waiting for! Let’s start.

Pros of Forex trading

Easy Accessibility

One of the most accessible markets for new traders is the forex market. With the lowest amount of money and an internet connection, anyone can start trading forex. It is the easiest financial marketplace where a trader can open a trading account with an online broker with flexible rules within a couple of days. Besides, as forex trading can be done from anywhere, one does not need to be present at a fixed place physically to execute the trades.

Minimum Capital

If you have 100 USD with you, you can start trading instantly. Most brokers allow traders to trade with 100 USD when it comes to opening a trading account. Even, some of them allow you to deposit 50 USD and let you trade. So, if you have minimum capital in your pocket, you can start trading now.

Leverage Availability

Leverage is one of the most important factors in forex trading. Leverage enables you to trade big positions in trading. In comparison to most other markets, the FX market has more resources available for leverage. Traders may have access to margin that provides leverage of 100:1 or more for initial cash placed in a trade, depending on where they are trading from.

Fast Returns and Low Cost

In forex trading, once you have made the profits, you can easily withdraw your profits through your broker. But sometimes, it depends on your broker that how fast they can issue your withdrawal process. Moreover, trading costs in the forex market are considerably lower than in other financial markets. Sometimes the bid-ask spread determines the costs of FX trading. Different brokers have different spreads. So, it is important to choose a broker wisely and patiently.

Practice Trading

You have a great opportunity to learn by practicing in forex trading. You can easily open a demo account with any broker and practice with virtual money. You can test different strategies in that demo account to find out your own trading strategy. Besides, you can have a real time experience with the broker beforehand to find out whether the broker is suitable for your trading or not.

Cons of Forex trading

Volatility

Volatility is the main and important factor in forex trading. Other financial markets will also have unstable market conditions, but the FX market is exceptionally unstable. Forex traders who are expecting for quick profits may often face unexpectedly high volatility, which can turn their currency trading tactics useless. Volatility is like a two-edged sword. It can magnify your profits or blow your account within a minute.

Big Players VS Retail Traders

So, while trading in forex as a retail forex trader, you ultimately compete with a large number of experienced traders, international organizations, national central banks, hedge funds, and other market participants. Every day, more than US$5 trillion is being traded. Big players like banks and international organizations are trading in huge volumes. Because of their trading volume, and greater access to information and technology, they have the upper hand in the forex market. They can manipulate the market according to their advantages anytime.

Emotions in Check

It is the most important skill you need to have while trading in forex. Many new traders lose control over their emotions when they face several losses in trading. To be honest, keeping emotion in check is not easy at all though it sounds easy. Trading with emotion is not supported by any professional traders. If you think that you will gain only PROFITS with no or one-two losses, you need to leave this mindset outside of the door of the forex market. But some trader cannot control their emotions and end up losing more money in trading.

Proper Knowledge

Having proper knowledge about the market is crucial while you are trading in forex. You must not only educate yourself about trading in this profitable financial market, but also keep yourself informed about market conditions by following news stories, the NFP, the FOMC, and other events. Besides, finding out the appropriate strategy for profitable trading is another level of test for traders. But once you overcome these obstacles, you are enough confident to trade.

Tips to Remember

• Forex market is huge, and you can have an easy access to this market but remember, you are not only the player here. Keep the big players in mind and play accordingly.
• Train yourself properly by practicing in demo account. Invest money in trading when you are confident to LOSE. Remember, practice makes perfect.
• Do not get angry when you lose and do not get greedy when you make profits. Both are injurious to trading.
• Start with small capital and a small lot. Always maintain risk management and strategies. Trading with risk management and strategies is like sailing a ship without a captain.
• Keep yourself up to date about the forex market. Do not trade blindly. Only knowledge can save you from being a failure.

So, after getting to know about the advantages and disadvantages of forex trading, it is up to you whether you want to trade in forex or not. Don’t hesitate to contact SSF SUPPORT on telegram any time with your queries. Our experienced support team will help you with your trading issues.

FAQs:

The post Is Forex Trading for You? Pros and Cons of Forex Trading appeared first on SureShotFX.

Economic Calendar: Your Timekeeper for Market Movements

The forex market is influenced by a variety of factors, including economic news and events. A news and economic calendar can help traders stay up to date on the latest news and events that could impact the forex market.

How to use it properly:

To use a news and economic calendar properly, you need to first understand the different types of news and events that can impact the forex market. There are many different websites that can teach you about this. You can check out economic-calendar. Make it a habit to regularly check the economic calendar and plan your trades around significant economic events. Understand how these events can influence the movements of currencies you’re interested in.

Benefits

• There are a number of free and paid news and economic calendars available
• Can help traders identify potential trading opportunities
• Can help traders manage risk.
• Keeps you posted about interest rate decisions, GDP releases, and employment reports.

Drawbacks:

• Can be overwhelming, especially for beginners.
• Not all news and economic calendars are accurate

Forex Free Signal:

First, being new to forex trading will require you to research and invest a lot of your time. But you can’t stay put till you have learned it all, right? Hence, forex free signal is one of the tools that will help you make small and good profits alongside your learning curve.

You can simply join SureshotFX Free Channel for forex free signal and SureShot Gold Free Channel to start copying gold free signals. Here is our free signal result at a glance-

How to Use:

It’s pretty simple! You need to find a good signal provider who sends forex free signal and test it for a week or two, just to be sure. After that, you can copy those free signals into your own account and make profits.

Technical Analysis Tools: Your Chart Whisperers

This is the study of historical price data to identify patterns that can be used to predict future price movements. Technical analysis tools can help traders identify support and resistance levels, trendlines, and other important price patterns.

How to use it properly:

Blend technical analysis with fundamental analysis to form a robust trading strategy. Learn how to interpret various technical indicators to confirm your trading signals effectively.

You can get basic knowledge about forex from our e-book. Visit this link to get our e-book Sure Profit Trading Secrets! Once you understand how the tools work, you can start using them to analyse the market.

Benefits:

• Can help traders identify trading opportunities
• Can help traders manage risk
• There are a variety of free and paid technical analysis tools available

Drawbacks:

• Technical analysis tools can be complex and difficult to use
• The results of technical analysis are not always accurate.

You can get weekly trading analysis and forecasts in our free channels every week. We also post our technical analysis on our website- Visit Forex Technical Analysis – SureShotFX

Copy trading

Copy trading is a way for traders to automatically copy the trades of other, more experienced traders. This can be a great way for beginners to get started in forex trading, as it allows them to learn from the experience of others.

How to use it properly:

Now, to use copy trading properly, you need to first choose a copy trading app. There are a number of different platforms available, so you should do your research to find one that is right for you.

However, SureShotFX has a copier that will copy all the trades and their updates sent in premium channel. You will get all in one from SureShotFX. We also have a dedicated copier support team to help you set up the copier according to your preference.

Secondly, once you have chosen a platform, you need to select the traders whose trades you want to copy. You can typically choose traders based on their trading style, experience, and performance.

Benefits:

• Can be a great way for beginners to get started in forex trading
• Allows traders to learn from the experience of other, more experienced traders.
• There are a number of copy trading platforms available.
• You can trade without searching for trades 24/7
• CAvailable in both image and text version

Drawbacks:

• Can be risky, as traders are essentially copying the trades of other traders, who may not be successful
• Some copy trading platforms may have high fees.

Risk Management Tools in Forex:

Thirdly, a risk management tool in Forex is a strategy or mechanism used by traders to minimise potential losses and protect their capital. It includes setting stop-loss orders, determining position sizes based on risk tolerance, and employing other techniques to ensure prudent risk management in the volatile currency markets.

How to Use

Next, determine your risk tolerance and set your stop-loss and take-profit levels accordingly. A common practice is to risk no more than 2-3% of your trading capital on a single trade.

Benefits

• Risk management is the guardian of your Forex adventures, ensuring your capital stays protected. 
• Acts as a safety net, shielding your trading capital from catastrophic losses, ensuring you can continue trading even after setbacks.
• By automating risk-related decisions, these tools help traders avoid impulsive actions driven by fear or greed, fostering discipline.
• They enforce a consistent approach to risk across trades, preserving the integrity of your trading strategy and long-term goals.
• Tools like stop-loss orders and take-profit orders allow you to set predefined exit points for your trades, minimising potential losses.

Drawbacks:

• Over-reliance on these tools may lead to a sense of invincibility. They are not foolproof and cannot eliminate all risks.
• Some risk management tools can be complex, requiring traders to invest time in understanding and implementing them effectively.
• Certain advanced risk management tools come with associated costs, potentially impacting your trading expenses.
• Be cautious about setting stop-loss orders too tightly, as this could result in exiting profitable trades prematurely.

Here are some additional tips for using these tools effectively:

• Use multiple tools: Don’t rely on just one tool to make trading decisions. Use a variety of tools to get a more complete picture of the market.
• Backtest your strategies: Before you start trading with real money, test your strategies on a demo account. This will help you to see how they perform in different market conditions.
• Manage your risk: Always remember to manage your risk. Don’t risk more money than you can afford to lose.
• Get training: If you are new to forex trading, get training from a qualified instructor. This will help you to learn the basics of trading and how to use the tools effectively.

Conclusion:

The forex market is a complex and volatile market, but by using the right tools, traders can improve their chances of success. These top 5 tools are your trusted companions. They offer you the keys to the market, knowledge of critical events, the power of analysis, risk protection, and the wisdom to keep learning. While they come with their quirks, mastering their usage can be your ticket to informed and prosperous trading decisions. By learning how to use these tools properly, traders can increase their chances of making profitable trades.

The post Top 5 Forex Trading Tools Every Trader Should Be Using appeared first on SureShotFX.

What is a trading plan?

In simple terms, trading plan is a framework that guides through our trading process. It clearly depicts the conditions under a trader should enter trades, identify market condition, exit and manage risks. Thus, a trading plan ensures that the trader is focused on their personal strategy and accountability.

How to create a trading plan?

Let’s discuss about the 5 main factors of a good trading plan. And how a good trading plan can help you optimize your trading behaviour.

1. Understanding Chart Context

Starting with Higher Timeframes: Price analysis typically begins with higher timeframes to get the overall chart context and determine the trend direction. Many traders opt for the Daily timeframe as their higher timeframe, as it offers a broader perspective suitable for various trading styles.

Identifying Trend Direction: On the higher timeframe, traders identify the general trend direction, which guides trade selection. Trading in the direction of the trend on the higher timeframe is commonly considered a more favorable approach.

Weight of Support and Resistance: Support and resistance levels identified on the Daily timeframe hold more significance. Traders should first draw support and resistance levels on their higher timeframe before moving to lower timeframes.

Additionally, identifying key round numbers and plotting previous supply and demand zones can also be done effectively on the Daily timeframe.

Example: In the provided screenshot of the Daily timeframe of EURUSD indicates that the price most probably ended its pullback & currently reacting from the rejection block. So, there’s a higher probability that the market may continue its bearish run once again till the next Demand zone.

2. Identifying Set Up:

While the higher timeframe suggests an overall bullish trend, it’s not advisable to enter trades blindly without analyzing lower timeframes. Lower timeframes help traders identify specific entry criteria and develop a trading plan based on their chosen strategy.

There’s a wide array of trading strategies available, and traders should select one that suits their preferences and goals. This article focuses on a common pullback trend-following system as an example, but the goal isn’t to promote a specific strategy. Rather, it’s to demonstrate a top-down trading plan technique.

Instead of immediately entering a long trade based on the Daily timeframe analysis, traders employing a pullback strategy wait for the price to offer a better entry point by moving lower.

Example: So, following the daily timeframe direction, we can look for sell setups on a lower timeframe like this M5 timeframe. Here, we’re waiting for liquidity to get swept, mitigate supply zone & with structure shift confirmation, we can enter sell entry to continue with the D1 timeframe bearish bias.

Trading plans typically follow an if-then format, where the “if” part describes a specific event on the price chart that the trader is waiting for, and the “then” part outlines the action the trader will take in response.

3. Setting Your SL, TP & Trade Management

The screenshot below is a scenario of an if-then trading plan. While traders often concentrate on finding the perfect entry point, they shouldn’t overlook other aspects of their trading strategy, such as stop loss and take profit placement.

Stop loss and target levels directly affect a trader’s win rate and the duration of their trades, which are critical metrics for evaluating a trading strategy’s effectiveness.

• A wider stop loss makes it more challenging for the price to reach and trigger the stop loss level, resulting in a higher win rate. Conversely, a tighter stop loss is easier for the price to hit, leading to a lower win rate.
• The distance of the take profit order from the entry affects the likelihood of the price reaching the target. A farther take profit level means it’s less likely for the price to hit the target but may result in longer holding times for trades. Conversely, a closer take profit level increases the likelihood of the price reaching the target, resulting in shorter holding times.

It’s crucial for traders to follow a consistent approach and apply the same rules to each trade. Varying rules from trade to trade can introduce inconsistencies and noise in trading results. Ideally, all trades should adhere to the same trading rules for stop loss and take profit placement.

Choose Your Analytical Approach
Analytical approach answers the question, “How do you identify trade set-ups?”. This can include a lot of factors. It can be a combination of priceaction, support & resistance, chart patterns, Fibonacci levels Heike Nashi Candles, Elliot waves etc.

Select Your Favorite Trade Set Ups
A trading set up is the key part of the trading process. However, you need to think of the analytical approach as the event that triggers the trade set up. Here’s an example: imagine you see a special patterns on a chart, which we call a “consolidation pattern”. This pattern is a part of the analytical approach. When you see this pattern, it tells you what to do next as a trader.

You might want to trade when the price breaks out of this pattern, or you can wait for the price to go back a bit before you trade. Therefore, you can combine these strategies, but only after the chart pattern has fully formed.

Limit the Market to Focus on
Secondly, for beginners, it’s crucial to keep their attention on just a few markets. Each market behaves differently. And by narrowing down the number of markets you follow, you can grasp the unique features of each one. You can even concentrate on particular time frames within a single market to become familiar with how it works and its price movements.

Think About Your Holding Period
Thirdly, the choice of timeframes in trading depends on the trader’s style. Short-term traders, like scalpers and day traders, aim to open and close their trades within the same day. Medium-term traders, known as swing traders, typically hold their positions for a few hours to several days.

On the other hand, long-term trading involves much longer time frames, ranging from days to weeks, months and sometimes even years. Each style of trading suits different goals and strategies.

Know Your Risk Tolerance
Every component of a trading plan holds significance, but without proper risk management, the entire plan can crumble. In this phase, traders must identify their personal risk tolerance, which determines how far they’re willing to set stop losses to mitigate potential losses.

At SureShotFX, we share a trading risk management guidance to all our premium members. We send trade set ups in our premium channels depending on our trade team’s analysis. However, we also encourage everyone to know when to exit a trade. We can provide you a good set up to make profit, but you need to know when to exit a trade based on your trading balance.

We found that traders who maintained a proper risk management and trade management were three times more likely to achieve profitability compared to those who lacked a clear risk-to-reward strategy.

Plan How You Will Handle Adversity (& Success)
Every trader will inevitably face the challenging period known as a drawdown. It’s crucial for traders to establish a set of rules to guide them when this occurs, helping them manage their emotions effectively.

Therefore, one practical approach is to predefine a specific monetary amount or a percentage of losses that would trigger a pause for reflection and analysis. It’s important not to establish this figure in the midst of a drawdown but to set it in advance. This proactive measure can prevent impulsive decisions and promote a more rational response to setbacks.

Have a Routine for Staying on Track
Traders should allocate time for reviewing the week’s activities and analyzing their individual trades. It’s advisable to consistently assess the trading plan and make adjustments as needed. Regularly reviewing and journaling your trades is an effective method to ensure that you are adhering to the process outlined in your trading plan.

Check out our free channel for more insightful posts about trading forex!

The post How to Create a Good Trading Plan? appeared first on SureShotFX.

If you are a forex trader in search of legit forex signals, then look no further than SureShotFX. Join us as we unveil the amazing benefits of SureShotFX’s free forex signals channel and why we stand head and shoulders above the rest in the market. 😎

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How to select a good signal?

When it comes to selecting a signal provider, it is of utmost importance to thoroughly check their-

• Reputation: SureShotFX is rated 4.3 in TrustPilot
• Credibility
• Track record
• Transparency

These factors play a significant role in determining the trustworthiness and effectiveness of the signals being provided. By ensuring that these aspects are met, you can make an informed decision that aligns with your needs and expectations.

Here’s a bonus:

SureShotFX provides free forex signals in their public channel. They send 2-3 free signals every week and theses free forex signals will give you profit!

SureShotFX Setting Itself Apart in the Forex Trading Industry

In the competitive world of forex trading, one company stands out from the rest – SureShotFX. With its unique approach and unparalleled expertise, SureShotFX has managed to carve the heights.

Join SureShotFX Free Forex Signals from this link: https://t.me/sureshot_fx

Committed to Deliver Unmatched Value:

In SureShotFX, we are focused to provide premium forex signal. With our expert team of trading analysts, we deliver accurate and timely signals that empower traders to make informed decisions.

Through our thorough analysis, we are able to provide you with accurate and precise signals that exhibit an outstanding level of accuracy. Our trade team has 6 expert INTRADAY TRADERS with a trading experience of over 9 years. They perform competitive analysis and create accurate signals for our clients. We have been in the market for over 3 years.

Every Free Forex Signals that we share has an Entry Price, Stop Loss, and Take Profit. You only copy and paste those to your trading account. Our weekly goal is to generate 500–1000+ pip gains, depending on the market situation.

Our goal? 

When it comes to signal providers, SureShotFX stands out from the competition. Our unwavering commitment to delivering exceptional value sets us apart in the industry.

Unlike other providers, we firmly believe in providing value to everyone, regardless of their trading experience or background. However, we know that not all traders have the financial means to invest in subscription services, particularly those who are just starting out with a low balance.

At SureShotFX, we empathise with your situation and are committed to providing affordable solutions that cater to traders of all backgrounds and budgets. That’s exactly why, we are sending 2-3 free forex signals in our free channel and have a free subscription option for you guys.

Want to know how you can get FREE SUBSCRIPTION?

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What sets SureShotFX apart from the rest?

Well, to start- offering a good number of free forex signals, along with trade analysis and how we analyse our premium trades. This unique feature has made SureShotFX a preferred choice among traders seeking reliable and cost-effective signal services.

In an industry where free signals are a rarity and traders get easily scammed by shady signal provider, SureShotFX stands out as a beacon of trust and value.

By providing an extensive range of free signals, SureShotFX also empowers traders with the opportunity to trade with our premium signals for free with their trading balance. Not only that, here you can get to test our signals to try whether we provide quality signals or not and then choose to make your hard-earned money worth every penny.

With our unparalleled expertise and proven track record, we are the go-to choice for traders of all levels. Whether you’re a seasoned professional or just starting out in this game! ⚡ 

What Makes Others Fall Behind?

While SureShotFX embraces the concept of free signals, many other signal providers do not. They often require traders to pay subscription fees, limiting the accessibility of their signals.

However, this exclusionary approach restricts traders from benefiting fully and can also make it difficult to make informed decisions.

SureShotFX stands apart by ensuring that all traders, regardless of their financial situation, have equal access to high-quality forex signals. Yet, SureShotFX upholds the highest standards of legitimacy and accuracy, the forex signal industry is not immune to dishonest practices. Some signal providers lack transparency, credibility, and a proven track record of success. We suggest you to be cautious.

Nonetheless, you can check out our scammers list to be safe!

In conclusion, at SureShotFX, we understand the challenges that traders face in the dynamic and ever-evolving world of financial markets. With our commitment to providing free forex signals for all traders, we want to break down financial barriers and empower traders of all levels to make informed decisions.

While other providers may lack transparency, charge large subscription fees, and deliver inaccurate signals, SureShotFX maintains a reputation for excellence and consistently achieves high accuracy rates.

Join SureShotFX today to experience the winning combination of value and accuracy, and unlock your trading potential.

So, are you ready to take your trading game to the next level? 😎

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