Most new traders try to trade a single currency pair. They think they can have the better chance at winning the trades of they practice their trading in one market only. We know that it is the common thinking for traders to trade only in one market. In Forex, if you trade only in one market, it will not increase your chance of winning because you will be dependent on that market movement. If your market has some volatility, you will have to wait for the market to return to its stable rate. Most people in Forex trade in the Forex market with only one choice in hand. We are not saying trading in one market is bad as you will know why it is also good sometimes when you read our article. We are saying is trading in more than one market can provide you with many choices in Forex.
Diversity in price movement
Every single currency pair has its own unique characteristics. It’s not like that you will be making a profit on the EURUSD pair since it is one of the most traded pairs in this world. Being a new trader the first thing that you should do is to find your best trading asset. Open a demo account with a professional broker and see which pair suits you the best. It’s true that you might not find a specific pair to trade but over the period of time, you will start to realize that instead of trading a single pair it’s better to trade more than one currency pair. By trading more assets you are actually increasing your profit margin and reduce the risk.
But this doesn’t mean that you will have tons of charts on your trading platform. Most of the successful trader’s only trades 10 -12 different pairs. If you focus more than 12 pairs in the market then chances are very high that you will fail to get a clear idea about the overall market trend. You need to find some specific pairs which seem easy for you to trade. Make sure that you trade the market with a simple trading system since success lies in simplicity. Use the price action confirmation signal to execute trades at the key support and resistance level. And never risk any money which you can’t lose comfortably.
If you have your favorite market to trade, trade in one market
If you think you are comfortable with trading in this market that is your favorite, keep trading on that market. It is good for your profit and also your investment if you can keep on making money from one market. Traders make their money by trading in different markets and only hard-working traders can make their money in one market. It is also important that you have a favorite market to trade. You will see that you are making more money when you trade in this market.
Trading in more than one market increases your profits
When you trade in more than one markets, it also increases your profits. You have more markets in your trading mindset that you can place your trades and if one of your markets is volatile, you will have markets in your hands. Most people know that and they try developing their trading in more markets. It is not easy as different markets have different trends. If your market is easy and stable going, you will find that the new market has some volatile trends. The patterns of the markets are always changing and it will also increase your knowledge of Forex trading. You will know how to use strategies in markets to make your money. You can always trade on your favorite markets but this one market more will give you more chance at your profits. Professional traders do not trade in one market only. They trade on many markets to make their profits.