Multiple trades and money mangement

It seems the consensus is to not wager more than 2% of your account. This seems pretty good to me but what if you are trading multiple pairs?

For example what about having 5 trades going at once:

2% on GBP/USD
2% on USD/NZD
2% on EUR/USD
2% on GBP/EUR
2% on USD/AUS

You’re risking 10% but its spread over 5 trades so its different from 10% on one trade.

Is this still risky?

Yes its still risky imo. Reduce the overall one time risk(10%) by reducing your risk per trade to say 1%, only 5% will be at stake. Or you can trade less, say 2-3 trades at any one time.

It also depends if you’re taking any trades that are correlated, that could give you more exposure without you realizing it.

+1 Good call.

Absolutely an issue.There are correlation issues in the pairs mentioned right off the bat.

i think it would be a better use of your time and money to focus on getting 5 entries of 1% on the same pair. It’s not about eliminating risk, it’s about making sure that you are getting good reward potential on the risk that you do take. Scaling into a position can leave you with a large position and huge profit potential, all made with low risk entries.

just remember that demand/supply of one currency will affect all pairs that contain that currency

Yup, here is a website if anyone wants to take a look at correlations. Forex Correlation -

This is even more risky than spreading 2% on several pairs. 5 entries on one pair is basically the same as 5% on 1 trade.