trade one instrument vs diversify, let's experiment

Let me understand your argument: do you mean if I want to take 10 trades today, i should not take them on one instrument instead i should take them on different instruments across different asset classes?

Yes, that's what some traders believe. They say its better for risk mgt

I accept this challenge, I am beginning to think diversification is better than trading just one pair. I will be posting my results as I trade EUR/USD, US30, NAS100 and Natural Gas

Today I trades two asset classes: Currencies and Energy. Most of my losses came from the currency trade because of its confusing movement, but the only loss on natural gas was due to me mistakenly closing a trade. So yeah I tried to diversify but its too early to say diversification is better than trading just one pair. Lets keep experimenting.

My take on currency diversification:

Diversification is not a remedy by itself. The moment you enter the market just to “make money,” you’re already off guard greed takes over.

Spreading risk across pairs only works if you actually understand the drivers behind each one. If you’re trading EUR/USD, Gold, USDCAD, and NZDCAD without knowing why they move, you’re not diversifying risk. You’re multiplying ignorance.

True diversification means knowing the correlations and finding pairs that move opposite to each other for a reason. It means understanding what fundamentals drive each asset.

The greed part is the real trap. Once you’re chasing daily profit, you’ll trade anything that moves. At the end of the day, you don’t make money you lose it.

Diversification can be good, but only with proper position sizing. You can’t lose 100 pips on Gold and think a 100-pip win on EUR/USD will recover it. Pip value ≠ dollar value. Gold moves $1/10pip, EUR/USD moves $1/100pips. The math won’t save you.

Don’t diversify just to spread risk. Diversify with knowledge, correlation, and strict sizing or stick to one pair that you know and master

The purpose of trading is to make money, nobody comes in to lose money. Of course before I trade different asset classes I will know what moves their market and I will have a strategy. You cannot assume I dont know that. of course different instruments do not have the same pip value but thats not the point, the point is trading several asset classes in a day increases your chance of winning. If gold is misbehaving, you should not invest all your time into it, you use some of that money to try a pair with clear direction. I am sure you trade more than one instrument from your posts so why dont you trade just one if diversification doesnt work?

The reason for the thread is simple, if you believe in trading one pair then show your trading account statement lets see if it works. If you believe in diversifying show your statement lets see how it works for you. Lets have less talk and more action

For me, trading multiple pairs has been a game changer in my trading journey. My strategy is built around patience, so focusing on just one pair doesn’t really suit my approach. By trading multiple pairs, I’m able to stay aligned with market opportunities without forcing setups, and it has helped me significantly reduce screen time. Overall, I fully support trading multiple assets as it brings more flexibility, better opportunity flow, and improved consistency in execution.

I didn't say it doesn't work, but all I said was consider some several factors before going into it or you maintain the one you are trading until you get much information about the other you want to include in your watchlist

I trade eu, gold ustech and usdcad but I don't trade them at same time Everyday there are days I trade only eu or eu and gold or ustech and usdcad, do you know why? That's because I do a lot of findings for that day and know which is suitable to trade for that day, sometimes I trade all of them if that day after all my analysis I see that one and same thing is driving all of them in same direction, so all am saying is diversification is good, but if you look at strategy alone then it's really not working

Today, I tried to diversify and trade eurusd, nas100 and us30. The results I got show losses on eurusd and us30 but gains on nas100