Focusing on 1 pair?

After navigating my way through the many different ways of approaching the market, I finally found my way now. I’m definitely going with one pair. I’ve been so spread out, not being able to be consistent with anything.
My pair is GBP/JPY now.
And I’m very happy with my results so far. Yes, Mr. JohnLeonard, very spikey, but I bet you I will profit more on the spikes than you will. Much more in tune with it than the casual on looker. Oh, and those spikes are $ don’t forget.
Mike

If you just a beginner, you need to sharp the skills trading on one pair live. On your demo account you can do whatever you like, but live account is something that you don’t want to mess with.

focusing or concentrate on 1 pair is good strategy but it is depends on trader and the system that they used.for me i just focus on 2 pairs

At the beginning, I focus only on 1 pair because that’s the only my little brain can handle… Then I upgrade it to 2 -3 pairs… Though, I only trade 1 pair at a time.

If I can barrow other brains from you guys then maybe I can do 28 pairs all at the same time with 5 monitors blinking on my screen (red and green color or maybe pink ;)) so it will be look like Christmas everyday :slight_smile:

Sorry, barrow what? Just could not resist :slight_smile:

No it is not necessary but do good practice with one pair and then try other one in trading . Demo trading is giving you chance to test all major currency pairs for a period you are not expert . you will gain more experience with practice how any pairs works in forex market.Then you can confidently interact with market.

During initial trading trade it is safe and sound to learn and trade with a one pair. When the time moves on you can learn and trade with others.

Your brain Lol if there is anything left… Not trying be greedy here But I want to monitor 28 pairs or maybe 52 if it is even possible lol

One issue that I found when considering multiple pairs is that many of them provide the same signal at more or less the same time, especially pairs which have the cross as USD - obvious why really. As someone else mentioned in this thread, taking these trades at the same time is the same taking the same trade several times over in a single pair. This is one of the issues when you use the same trading strategy over several pairs - at least this is what I found.

Lol, that’s an idea.

You’re welcome to what’s left, after starting at the monitor for a day…keep seeing neon lights blinking in the background…
Oh I was not doing the newbie dance, where you stay hooked to the monitor for days on end, it was 'cause I saw some youtube videos of cats and got hooked…

I would advise you to keep an eye on 2 pairs. If you like GBPUSD then you can also follow EURUSD.

Most of the time one follows other.

Yes GBPUSD and EURUSD most volatity and many traders use it. But better do not use following - its wrong
Also good trend pait is USDJPY

But the question is about not how many pairs - i meen if you can not use 1 pair for profit thats not meen that you can use 2 pair better to get more profits that loss
EAFXProfit’s Profile | Myfxbook
Even if 1 pair show you little dd (17 %):


If in that strategy add more pairt it will be more dd (33 %):


senior. do you scalp or swing?

as a newbie, I just scalp for 1 pair Cross which is EURJPY because I have winning spree there. :slight_smile:

-scalping
-hedging
-tralling
-correlations

Its not about the pair its the signal.You should look at as many pairs until you find a good signal.If GBP/USD doesnt give that to you try GBP/CHF ,if that is not good either try EUR/USD.So you should check them all and pick that one which has the best signal.

I think you have summed up an excellent reason to follow multiple pairs. Assume that AUD/USD and NZD/USD have been very closely correlated and CAD/USD has been in very close [anti]correlation mode with them. They can, if fact, offer the same signal at more or less the same time, as you mentioned. Let’s say you notice that AUD/USD and NZD/USD have just reacted to a zone of support and are reversing their short trajectory and are now moving long. CAD/USD, lagging just a bit but still assumed to be an anti-correlating pair, is just now reaching what you have identified as a zone of resistance…

Where do you think CAD is going?

By following and keeping in mind the movements of all the majors and how they are moving and knowing which have been correlating, you sometimes get a brief glimpse into the future.

In the above example you need only trade CAD but it sometimes certainly helps to follow multiple pairs. Meanwhile, you, following just one pair (not that there is anything wrong with it, btw), have no idea what the overall market is telling you and missed a great trade on another pair.

Disclaimer: This was my primary trading method for a few years. Last November, as many will recall, longstanding, traditional correlations went out the window for an extended period – so did my relying almost exclusively on this method to pull profits out of the market.

Following multiple pairs for a technical trader is as easy as clicking a button a few times to gain a bit of an alternate perspective or view on what is going on. Your signal on your one pair says “Go long!” Meanwhile, every correlated pair and the indices say, “Go short!”

You may get lucky on the trade but the odds are now definitely against it. Just one of the reasons I follow all the majors (and correlations).

you are nerd guy. haha. anyway, that’s your style. :slight_smile:

GBP/USD, EUR/USD, AUD/USD and USD/JPY should tell you about USD right? Thats what I personally do.

Great minds think alike right!

It’s funny you should say this as this is the very first trading approach which I used, or at least very close to this. I think I named it divergence between correlated pairs, be it positive or negative correlation. For example I used to track GBP/USD and EUR/USD on an overlay chart so that both pairs are together. If one pair made a higher high and the other correlated pair failed to make a higher high at the same time I would look to short the pair that made the higher high…Simple why really. Two strongly correlated pairs, one pair shows weakness before the other, short the pair that hasn’t yet showed weakness.

This approach did work, and it worked very well for almost six months, but then I came across an issue which in all honesty scared me. Correlation between pairs is not constant all the time, right, which means at some point a positively correlated pair will perhaps turn into a negative correlation…ouch… now you’re taking trades and the drawdown starts to kick in.

(I’m the kind of person who hates not being in control (no I don’t beat up women) but in terms of trading risk) So I decided to take a different approach to trading a primary correlation based system. I do indeed agree with you that it does work, and when the times are right it can work very very well. However, in my case I was struggling to calculate when and why correlated pairs lose correlation, how long this will last for and indeed when the strong correlation may return - without this correlation the profitable trades start to dwindle (an unknown I was not happy with)

I now spend about 80% of my time following GBP/USD only, and have done for the past few years. I’m sure if I started looking at some other major pairs I could fit this trading approach around them too, but the main reason my current trading system works is because it focuses on a pairs stability, rather than which direction it is moving in or how it may or may not be correlated to other majors.

I still play around with trading on a correlated approach, but have yet to find/develop a rigid foundation which takes into consideration when the correlation changes, a factor which is very much related to profits!

It’s good to see someone else trying this approach to trading, an approach which doesn’t come to mind so easily and usually requires a good amount of research figure out.