How many currency pairs should be traded at one time.?
I am a newbie in forex trading and i would like how many currency pair should i trade with.
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This entry was posted on Friday, March 5th, 2010 at 5:45 am and is filed under Currency Trading. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
March 5th, 2010 at 5:45 am
How many? Are you asking about money managegment, like how many contracts, or how many different pairs to trade at once, like diversification?
If the latter, 2 or 3 things is all you can watch at once, but I don’t see the point unless you’re swing trading.
If the earlier, stop trading or don’t start until you go back to square one and learn everything you can about money management and risk control, or it will eat you alive.
The biggest and most common mistake made by beginners is leverage. Taking advantage of the full 100:1 margin leverage is just insane, and you will lose. Look up the well-know study called Gamblers Ruin. It’s not a matter of "if" but rather "when" it will all be over, done, ruined.
http://www.babypips.com/school/money_management.html
http://en.wikipedia.org/wiki/Money_management
http://www.trading-secrets-revealed.com/trading-money-management-insights.php
March 5th, 2010 at 5:45 am
Being a newbie i would suggest you that initially you go with only 2 or 3 currency pairs at the max. This will help to maintain your portfolio in the initial stage. Concentrate more on them and try different trading styles that will suite you. This will also help you to avoid heavy losses.
I am using Finexo as my online forex trader which helps me to manage my portfolio. For forex education i also refer some blogs like Forextradingguru and Forexmoneymaker.
March 5th, 2010 at 5:45 am
For beginners 1 or 2 currency pairs Max. start with just 1 and then when you’re making consistent profits with it, add the 2nd one.