Trade On One Or Many Pairs, Which One Is Better?

Hi Gianni Brendon
A trader must know the character of the goods to be traded. Do the goods spoil quickly? whether the goods will sells fast or vice versa, and so on. Likewise forex traders, you must know how the character of the currency being traded. And our advice, for beginners it is better to use 1 currency exchange rate first.

What are the considerations for playing 2 kinds of pairs or more?

The consideration for trading in many pairs is the amount of funds you have, because in trading you will use margin. So that some of the funds will be used as collateral for the transactions made.

@Gianni Brendon

The broker offers many currency pairs to trade. So it's up to you. For day traders, in general, choose one or several currency pairs that are moving with a clear trend, not choppy ones or moving irregularly with a narrow range. For those who use the hedging strategy, at least trade 2 currency pairs, for example, buy EUR/USD and buy USD/CHF.

The considerations of trading in many pairs are:

1. Traders carry out hedging strategies that are not on the same currency pair. For example, buy EUR / USD and buy USD / CHF, or buy EUR / USD and sell EUR / JPY

2. The direction of market sentiment is fundamentally clear, it could be due to the release of fundamental data or comments from central bank officials. For example, there is a signal that the Fed's interest rate will rise and the ECB will add stimulus or bond purchases. In this case, the sentiment on the USD buys and the sentiment on the EUR sell. Apart from selling EUR / USD, traders can also sell EUR / JPY, sell EUR / GBP (if sentiment on GBP is neutral), buy USD / JPY, sell GBP / USD, etc.

3. In sentiment analysis (with price action), there are signs of possible significant price movements in several currency pairs. For example, in EUR / USD, GBP / USD, and XAU / USD, each confirmed pin bar is formed, which indicates a reversal will occur.

@Gianni Brendon

If you can, there is no problem trading with many pairs. But it takes a lot of energy. I was trading on 7 pairs yesterday. the bad impact is I am tired of changing pairs, seeing 7 charts changing periodically. The good impact, I get 25% profit from the capital. My advice is, just play on 1, 2 pairs, we trade to be happy, so trade comfortably.

Hi Guys,

Thanks a lot for your advice. It really helped me.