Markets
Your second step is to select which currency pairs and crosses you want to at least begin trading. You may want to add or subtract pairs as you go along, but such swaps should be facilitated in an evolutionary, not revolutionary, fashion. This book lists five pairs and five crosses to meet a wide range of trading interests and propensities. The codex method allows you to keep more pairs and crosses on a monitor status and easily bring them into your trading if certain criteria are met.
The most popular markets are those including either the euro (EUR) or the U.S. dollar (USD). Five of the seven markets include one or both of these. The so-called exotics may offer exceptional opportunity, but they also command exceptional risk.
Currency pairs have different personalities and generally evolve slowly. The trader wants very much to select pairs for which his codex is a good fit. If you have an aggressive trading codex, select high-volatility pairs. If you are a very conservative trader, select low-volatility pairs. There are several other currency selection criteria that I discuss in GSIFTS.
Money Management and the Soft Elements
Your third step is to define yourself as a trader. This is a critical step and one most traders accomplish only by default. You will save a great deal of time and avoid much frustration by working through this process as early as possible in