Master One Pair & Milk It
I dont know if everyone will agree with this but i think forex traders should pick one currency pair and become a master of it. It's way better than trying to trade every currency pair you see.
After trading one pair for a long time, you begin to see repeatable patterns and the element of predictability increases. You dont need to trade every day too, on days when the market is behaving funny you can stand on the side and do nothing; you may not make a profit but at the same time you will not lose any money.
I have been trading only USD/JPY for two years now and i am starting to understand its movement and this has led to me being more profitable at it. Dont do what the 99% losing traders always do which is trying to be a jack of all trade and master of none. This is my opinion, you are welcome to share your thoughts on this thread.
But some forex pundits always say you should diversify and not put all your eggs in one basket/currecy pair
But some forex pundits always say you should diversify and not put all your eggs in one basket/currecy pair
The goal of any trader is to make money, so if trading only one pair will make you money why waste your time/effore trading several pairs?
The time you would have spent carrying out technical analysis for a single pair, you will divide it carrying out analysis for several pairs. In the end your analysis will be low quality and you lose all the trades.
Even when you go to a hedge fund or any professional trading firm, their traders specialize in specific instruments so why should a retail trader be trading everything? So, i agree with mastering one pair and milking it.
Which currency pair do you suggest for beginners to master?
I suggest eur/usd pair for beginner traders because it is not too volatile and there is a lot of information on it online for free.