Education

How to Trade Like a Pro | Focus on One Instrument!

“TO TRADE, OR NOT TO TRADE A SINGLE CURRENCY PAIR. THAT IS THE QUESTION…”

🧿MULTIPLE CURRENCY PAIRS
Easier to recover from losses on a given currency pair
Less likely to experience not seeing any setups for a whole day/week
Better understanding of pair correlations required
Can be more distracting

🧿SINGLE CURRENCY PAIR
No risk of trading correlated pairs
Better ability to focus
Feeling of understanding the price movements more
Can be a struggle to stick to ONE pair
Feeling of missing out when big moves happen on other pairs

✅HOW TO TRADE SINGLE CURRENCY PAIR:

🔲Step 1: Pick Your Currency Pair

▪️Is the pair active when I intend to trade it?
Even though the Foreign Exchange market is open 24/5, some pairs may be less traded at some specific times. Refer to "When To Trade Forex To Maximize Your Lifestyle & Profit?"

▪️Do you understand the currency pair you want to trade?
If you trade a pair with your country's currency, your chances of understanding how the price of the pair fluctuates might be higher. You will know what's going on and might even be able to know where the currency is heading (we are talking of fundamental analysis here...).

▪️Is the pair too or not enough volatile for you?
Don't be surprised to see big swings in GBP/JPY or GBP/NZD because those pairs are considered more volatile. Some traders like it because the profits usually come quickly, but stopped out trades can be more frequent.On the other hand, a pair like USD/CNY will have some inactivity periods and that might be frustrating.

🔲Step 2: Plan Your Trading

Good strategies are abstract and should work on any currency pair, however, since you have decided to trade one pair only, you have the privilege of tailoring you strategy to the particular pair, taking into the account it’s volatility, average likelihood of fakeouts vs breakouts, how trending it is on average etc..

🔲Step 3: Stay Consistent

Stick to the plan for at least a month. You might start the month feeling excited. You might get discouraged because you've taken too many or too few trades two weeks in.No one cares. Stick to your decision.At the end of the month, two things will happen:

1. You'll have built more confidence in your ability to remain consistent.

2. You'll have performed an experiment and will be able to say what works vs. what doesn't.
Those are two great things for someone who's looking to grow as a Forex trader.

Thanks for reading bro, you are the best☺️

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