Trading more then One Pair?

[swordofrue]

Hello everyone,
I know it is usually recommend for novice traders to start out trading more then one pair. However, I think I have come along way and looking to trade another pair. Specifically cable. I am not increasing the number of pairs I trade to increase my profits, mainly doing it because I want to increase my difersity. Like today during New York session I didn't really get a strong signal to enter. However, if I was watching cable I would of had a strong signal.

So do you think it would be safe for me to follow another pair? I just want to follow this pair to supplement my trading opportunities. I plan on not having two positions open at the same time. I just want it there in case there isn't opportunity in one pair over the other? Do you think this is wise and manageable? Do you think my motives for following another pair are valid?

Thanks,
--Nate

[pkffw]

I'm only a newbie myself but I don't see this as a problem.

If you are confident in you ability to handle two pairs, are strict with your management of trades and can track and be aware of any important news releases relating to the two pairs then fair enough.

I certainly wouldn't be trying to handle any more than 2 for a while though!

Cheers,
PKFFW

[rhodytrader]

If you've only got a position on in one pair at a time, then there's no reason why you can't follow multiple pairs. This is especially true of you are using technical analysis and are comfortable with your approach.

[pipbull]

I think trading multiple pairs is great to diversify, but when doing so you have to pay close attention to the correlation between pairs.

If you are trading 2 pairs that correlate fairly well you could still take a trade in both pairs but trade half size in each one.

If you trade 2 pairs that don't correlate then a full position in each one is fine.

[topchess]

If you are confident in you ability to handle two pairs, are strict with your management of trades and can track and be aware of any important news releases relating to the two pairs then fair enough.

That answers it.
Ask yourself: Can you really study those pairs at once and make sure you fully understand the fundamental path for them? If you answered yes, then no problem, do it.

Cable is really volatile, but some people donot like volatile pairs. If you really like Cable nature, why would not you put all your trade efforts into Cable and trade it? -- Just a note..

[rhodytrader]

Originally Posted by topchess

Can you really study those pairs at once and make sure you fully understand the fundamental bath for them?

Of course, if you don't care about fundamentals and are strictly a technical trader, you can monitor more pairs. That said, if you trade short-term you definitely need to know what data releases and the like are on the calendar.

[swordofrue]

I am defiantly Technical bias. That being said, I try to stay away from news announcements and be out of any trades when major news is coming. If it is lite news I may wait to see what happens if anything, but definitely would move stop loss + some pips and hope for no slippage. But anything considered major I am out of there! Most of my trades only last a few hours.

[rhodytrader]

Originally Posted by swordofrue

...If it is lite news I may wait to see what happens if anything, but definitely would move stop loss + some pips and hope for no slippage. But anything considered major I am out of there! ...

Whoa! You should never move your stop. If you are worried about something happening, get out of the trade. Widening your stop increases your risk, potentially beyond what you set as your limit for the trade. Don't do that. It's a bad habit to get into.

[swordofrue]

Originally Posted by rhodytrader

Whoa! You should never move your stop. If you are worried about something happening, get out of the trade. Widening your stop increases your risk, potentially beyond what you set as your limit for the trade. Don't do that. It's a bad habit to get into.

Oh no, I don't do that. I move my stop to +5 pips from my entry! That way if it does go against me I am out with some profit. Instead of doing break even stop I do +5 because I may be concerned with slippage.

^^;
Thanks for the advice...

[rhodytrader]

I don't like that a whole heck of a lot either. You really shouldn't be adjusting your stop based on the data release. If it is something that concerns you, then really you should be out. Otherwise you run the risk of making your stop too tight and very much increasing the odds of it getting hit by what could be nothing more than a little noise. That could take you out of a perfectly good trade.