In a world where you can love anyone and anything your heart desires, fall in love with ONE currency pair ONLY.
The notion of "the more pairs I trade, the more money I will make" is false. If you wanna be a consistently profitable trader, it is more beneficial to focus on a small selection of securities and master them, and there is a concrete reason for that. Concentrating on one or two currency pairs instead of trading every single major, minor, and exotic pair will be more efficient, less confusing, and more profitable. When you study every single movement of any given pair, you get more experienced at trading it and you make more rational decisions and analyses.
Looking at the chart illustration, we might observe the trading log of all transactions we executed in April and May so far. With 8 trade entries and all of them being EUR/GBP, a total return of +9.6% has been generated constituting an approximate win rate percentage of 70%. Obviously, not every trade resulted in being profitable as we encountered 2 losses and a breakeven closure. Nevertheless, as we always indicate, trading is a game of big numbers and probabilities. Instead of trading 10 securities, we have only been focusing on one single currency pair recently.
One crucial thing that needs to be noted is the following: not always will the one specific currency pair of your choice provide you with clear swing opportunities as the example of EUR/GBP portrayed on the graph. Periods of long and dull consolidations, indecisions, and some other moments will take place and make a derivative unlikeable and less efficient to trade for a period of time.
Therefore, always have one or two other trades on the radar to eventually monitor and analyse along with the currency pair of your preference.
Thank you for your valuable contribution to the TradingView community and keep up the good work!
I do agree with the above and think there is something to this. One of the most successful traders I like to watch in the stock market world trades nothing but TQQQ and SQQQ which are effectively a leveraged pair. When one is up the other is down. He just goes long on whichever is running and exits and trades the other when the trend changes direction. I would think currency pairs would also work in a very similar way.
No need to trade the entire market if you get good enough and can trade the wiggle.
Investroy
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@zAngus Exactly, well said! Thanks for taking time and reading our publication, really means a lot!
Great Job My Friend , Thanks for your Good work and your efforts on this post ❤️
dryenz
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Fortunately I chose to trade one pair only since I’m a beginner trader and so far, I think I did the right choice, I can confirm this by reading the article
kingston-dave
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Quick question! Choosing another pair of preference, is it advisable you choose a different pair that as well correlates with the other one pair you trade always
Aphaynes
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A very good piece of advice. I only trade Gold and Aud/nzd and know both like the back of my hand. Last year 71% and 79% on these 2 and zero stress
Investroy
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@Aphaynes very impressive numbers, love to see it. Keep on killing it 🔥
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Thank you for your valuable contribution to the TradingView community and keep up the good work!
I do agree with the above and think there is something to this. One of the most successful traders I like to watch in the stock market world trades nothing but TQQQ and SQQQ which are effectively a leveraged pair. When one is up the other is down. He just goes long on whichever is running and exits and trades the other when the trend changes direction. I would think currency pairs would also work in a very similar way.
No need to trade the entire market if you get good enough and can trade the wiggle.