GBP. CHF. JPY. USD. EUR. AUD. CAD. NZD.
Those are the eight currencies I monitor in the market. No doubt you are familiar with them and their pairings such as GBPJPY or AUDCAD. In all, I monitor 28 different pairings between these currencies.
It’s time to stop looking at one pair and step back and look at the market as a whole. When you spend all of your time on EURUSD you are missing out on the movements that the other 6 currencies can provide in the market.
And I already know what you’re thinking. You don’t know how you can possibly monitor 28 different pairs, when you already spend so much time on one or two. My earlier post is the reason why. You’re spending too much time on one, and not paying attention to the overall market.
Instead of limiting yourself, you now have an opportunity to be expanding yourself. You’ll be taking in an entire market and paying attention to what each currency pair is doing, and in turn it will actually provide for you a better picture or on the strength or the weakness of an individual currency.
Now I have no way to predict which currency will perform best this week or the next. But I don’t have to have that concern, because I diversify and spread my risk and almost always have a portion of each currency. If one is performing better, I’m generally adding to my position in that currency. And if one is not doing so hot, I generally pull back a bit on that currency.
As a result, I’m able to capture all of the trends. If you ever see a lengthy trend in the markets, I was in it. That’s what I hold out for. Large pip movements. I’m not trying to get 10 or 20 pips. That requires too much work for too much risk and it takes too much time. As Sweet Brown would say, “Ain’t nobody got time for that!”
I don’t spend my time sniffing around trying to pick up scraps of pips, all worried if the spread is going to be too big and gobble up my profits. I’m looking for 100’s of pips. An example would be last week I closed out my EURJPY position for 986 pips after holding on to it for 42 days. When was the last time you held a pair that long, or took down that many pips in a single trade? Do you really think I cared how big the spread was at the time I opened that trade, or let alone when I closed it? It’s time to change the way you view your trading.
And I don’t have that time to trade the way you’ve been trading. And neither do you. There are far more things that are more valuable in your life than staring at some charts. Just today I timed myself at the end of the week close. It took me 13 minutes to have a look at the market where I placed two stop losses on two pairs and entered a short limit order on a third. For the sake of those eager to trade, when I haven’t completed explaining my methodology, I will not be revealing which pair that is. Odds are you would place too much risk on that one trade in relation to what it is we will be looking to accomplish in the end.
So now you have all the indicators removed from your chart. Your head is clean of news. And you are staring at 28 different currency pairs wondering what’s to come next.