Trade Many Pairs Or Focus On Trading 1-2 Pairs Only Which Is Better?

Correlation pair. Many must have heard, right? Trade correlation pair techniques used to be popular, around 2009-2010 I was not mistaken. That time is not like now. Now, many trade one or two, or only three pairs.

In the past, do not play a little trade in pairs. Once upon a time, the trade wanted to continue to 21 pairs. From major pair to exotic pair. That's why they lost everything, due to overtrading and chrome hit.

For those who have never known what a correlation pair is, I will try to explain the easiest way to understand.

Correlation currency or correlation pair is a pair that is related to each other. Either two types of pairs move in the same direction or opposite directions.

Example: EUR / USD is the correlation pair for USD / CHF. When the EUR / USD pair goes up, it is expected that USD / CHF will go down. So if you want to BUY EUR / USD, traders who practice trade correlation will also SELL USD / CHF.

Due to the obsession of trading all the pairs in MT4, I remember there were popular techniques at that time that encouraged me to continue trading up to 21 pairs. That's a lot right. For example, they will trade all existing pairs simultaneously.

For example,

BUY EUR / USD, GBP / USD, AUD / USD, NZD / USD and SELL USD / JPY, USDCAD, USDCHF and many more. All in at once. Haha. Really dizzy at that time.

But why are so many affected? Because many forex traders are greedy. Like me before, the early days in this field. I want to lose everything. If possible, all pairs in MT4 want to trade. This is what will cause overtrade. If you can make a profit, it doesn't matter. More pairs, more movement, and market sentiment need to be understood. So it's harder actually.

Actually, the right way, if you are new to forex. Focus on one or two pairs only. This helps you better understand the movement of the pair. After that, you can also focus on mastering fundamental news, such as economic data, sentiment, geopolitics for the currency of the country you trade.

If you trade many pairs, it means you need to read a lot and need to understand the economic activities of many countries. It's harder. Want to understand not just one or two countries. But it's like having to memorize the economy of all countries in that world map! Do not choose the difficult path.

If you can make a profit by trading only 1-2 pairs, maintain that momentum. The longer you observe the pair, the easier you will understand its movement. And it will make you easier to generate profits.