Should You Trade Every Currency Pair?
Early on in my Forex journey, I would look for setups on every single pair, from the most common to the most exotic. The pairs very few traders even knew existed or cared to look at. This, of course, has a few benefits such as:
- Always finding a setup.
- Trading frequently.
- You feel more productive.
To the trader who is just starting their journey in the Forex market, trading as many currencies as possible seems prosperous and the perfect way to fast track to financial freedom. BUT… it is all a misconception. This is a common way to blow your account!
You’ve probably heard the saying ‘Jack of all trades, Master of none’ right? That does not resound more than it does in this context. Simply because your focus is on every single pair out there, which:
- May not work with your strategy.
- It could be too expensive for you to trade (according to pip value).
- Risk management system may not suit all pairs.
Eventually, you can’t keep track of it all because there is too much to look at. You spend most of your time looking at all these pairs when the best set up is on the pair you haven’t looked at in a while. Eventually, you miss the trade, which could lead to a lack of patience and revenge trading.
There comes the point where the excitement of being in trades will grip you, and most Forex traders won’t even realize that they are in this rut.
This is what will usually happen when the excitement has gripped you. You’ll probably place way too many trades, invalidating the risk management parameters you are supposed to abide by. In this case, you will be left extremely exposed.
So should you trade loads of different Forex pairs?
ABSOLUTELY NOT!!! A resounding NO! You will only get yourself hurt, maybe not in the short term, but most likely in the long term. That is not the kind of regret you want to live with!
Know the Forex pairs that work best for you, focus just on those, and remember that less is always more.
So happy trading my fellow traders!