How Many Forex Pairs Should You Trade?
In this weekly video:
00:22 – Survey results from 35,000 traders
00:58 – I focus on the main 8 currencies
01.24 – This week was a prime example
02:41 – Do not limit yourself to just one FX pair
03:25 – Give yourself the best chance of seeing a high quality trade setup
03:58 – Live and FREE webinars – 2 sessions this week for you to attend
04:34 – Click on the link below to register for a webinar
How many currency pairs should you look at trading? Let's talk about that and more, right now.
Hi Forex traders, its Andrew Mitchem here, the Forex Trading Coach. Video and Podcast Number 250.
Survey results from 35,000 traders
I want to talk about how many currency pairs should you look at. The reason I want to discuss that on today's video and podcast is because as you know I have surveyed over 35,000 Forex traders recently. One of the common themes that came through from peoples' answers was,
• I'm not sure how many trades I should look at?
• How many currency pairs should I look at?
• Should I focus on just one currency pair and get that right, or
• Should I look at multiple currency pairs?”
For me, you definitely should not just focus on one currency pair. I think you should give yourself a good range of options.
I focus on the main 8 currencies
I've always focused on the main eight currencies, that is the US Dollar, the Euro, the Pound, the Aussie, the Kiwi, the Canadian, the Swiss Franc, and the Japanese Yen. Then combinations of those eight. For example, I might look at the Canadian/Yen, or I might look at the Aussie/Swiss Franc, or of course the major pairs as well. But combinations of those eight.
This week was a prime example
Why? Well, this week has been a classic example of why you should look at not just one pair. Let's take the Australian Dollar for example. Go and have a look at your charts for the first three days of this week; so Monday, Tuesday, Wednesday of this week. The Aussie Dollar against the Canadian Dollar has moved 35 pips. That's it. Absolutely awful trading conditions. Why would you focus, say, on just one pair? If you focus just on the Australian Dollar currency, well go and have a look at the Euro/Australian Dollar pair since last week. If you look at last Thursday, on the daily chart, the currency pair has moved down, up, down, up, down, up, down, up. Day after day. Every day through to today, which is now Friday the 10th of November. So have a look on the daily charts; it's closed bullish, it's closed bearish, it's closed bullish, bearish, all the way through. It's basically done this up, down, up, down since last Thursday, changing every day.
How can you trade currencies like that? You just cannot do that. There's just nothing there setting up as a suitable trade example.
Do not limit yourself to just one FX pair
By limiting yourself to just one currency pair, or even just one currency, you're really doing yourself, in my opinion, a big disservice. Go and have a look at around … For me I have about 27, 28 currency pairs that I scan through the charts. On a daily chart, or even on a weekly chart and daily chart, it really doesn't take very long. It's a five, 10 minute job once a day on the daily charts to scan through. You can very easily train your eye to see whether there's anything there at all at the close of the daily chart 5:00 PM New York time. Then similar when you go down to shorter time frames, it's very, very easy to scan through trades to see if there's anything suitable.
Give yourself the best chance of seeing a high quality trade setup
Give yourself the best chance of finding something. Doesn't matter where you live. I live in New Zealand, I don't trade the New Zealand Dollar specifically. It doesn't matter. I might trade the Canadian/Swiss Franc, as an example. Nothing to do with New Zealand. It doesn't matter. If the Canadian/Swiss Franc is showing a good setup, take a trade on the Canadian/Swiss Franc. I don't have to take New Zealand Dollar pairs because I live here.
So that was one of the topics that came through from those surveys.
Live and FREE webinars – 2 sessions this week for you to attend
Following on from those surveys, I held a live one hour webinar on Tuesday this week. We had almost 300 people on the session. I'm holding another one this afternoon, which is Friday afternoon in New Zealand time. By the time you get to watch this video and listen to this podcast, there are two sessions next week. Free sessions for you to log in and join. I'll be discussing the top issues that the Forex traders globally have told me they're having problems with, and giving you practical, useful solutions to those.
Click on the link below to register for a webinar
Free of charge, all you need to do to join one of those webinars is click on the link below this video. There will be a link there which will take you through to the last two remaining webinars which you can get on to next week by the time this video has been published.
Have a great weekend, I will see you this time next week. Hopefully before that I will see you on one of the two live webinars using the link below. This is Andrew Mitchem, the Forex Trading Coach.