How Does Currency Pair Correlation Work?

Hello,

I want to pick two currencies to trade however how do i avoid going against myself? For example if i go short on the GBP/USD which other pair should i be looking at to go long on the next day?

Just simplify the process …do not complicate it… Get profitable on the GBP/USD understand what moves it up and down and price action behavior…Then you can start looking at strategies like shorting a currency while going long on another.

If you want to start trading before you have a process by going long on one currency pair and short on another pair, you are in a way hoping that you will be right on one pair and that you gain will hopefully erase your losses…

Just note I mentioned hope twice…Hope is not building a trading process…Hope is not a strategy!

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try trading EURUSD, it’s the opposite of DXY (US dollar index). So pull up the DXY chart, and if the dollar is dropping, then the EUR is rising

Is it really necessary to change the pairs next day?

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I understand what you’re saying. There’s no need to switch pairs the next day, you can just stick with the one pair you’ve been trading for the entire week. And you can also just compound on that one pair, it’s less risk when you do that. So if you’re confident one a trade for one pair, then just open more than one position and double your money, even triple it, depending on your account size

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Good shout, i like this.

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Awesome! Thank you so much!

One question…

If i have a ÂŁ500 account and i intend to risk 1% per trade trading 0.02 lot, how much risk is doubling a position? 2%?

Do i set one TP and another below it and once the first gets hit i’d move my SL to where i opened the positions and let the other trade run as if it was a free trade

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If I read it correctly, then yes lol if you risk 1% per trade, then opening up a second position would be another 1%,so 2% in total. You got it.

And you can adjust your SL to break even, or a few pips past open price for the trade that’s running after your first TP is hit, that’s completely up to you

Yeah, that’s what i was thinking just set it a lil lower so you get something lol.

Thanks for the help!

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no problem, and heck yea! even a few bucks is worth it to me…profit is profit,it’s better than a loss LOL

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