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When I first got into trading, I came across many self-proclaimed master traders who only traded the EURUSD, or only traded the GBPUSD, or only traded the USDJPY.
I always questioned this, and their reasoning was something along the lines of “this pair has always given me the best results” or “this pair just speaks to me better than any other”.
Hmmm…
It didn’t make sense that with so many pairs, someone would trade only one. Regardless, I took the advice and ran with it. Long story short, it didn’t work very well.
But in their small defence, I didn’t have a trading plan and didn’t really know what I was doing at that point in my trading career.
When I joined Dynamic Trader, they told me what I was wanting to hear regarding the currency market…
“Trade whatever pair is providing setups and money at that point in time”.
It makes perfect sense.
Now when I say every pair, I am referring to the major and minor pairs.
Major:
EURUSD
GBPUSD
USDJPY
AUDUSD
USDCAD
USDCHF
NZDUSD
You can search online for minor and exotic pairs.
The reason that some exotic pairs may not apply to this rule is because there can be a big spread and much higher cost to trade these pairs, as opposed to the major and minor pairs.
So back to the point of conversation…
We don’t want to focus on ONLY one currency pair all the time because that pair may not be suitable to trade at many times.
If you, for example, only traded EURUSD, you could go weeks or months without a good setup while there could be other pairs like USDJPY or USDCAD that are providing great setups and are trending well.
We don’t want to marry a certain currency. This gives us an emotional attachment to it and could cause us to force bad trades, hold onto losing trades too long, and miss out on hundreds or thousands of pips generously being provided by other pairs.
If you ever hear someone saying you should pick 1–3 currency pairs and only focus on those, RUN. It is bad advice and it will cost you a lot of money in the long run.
We want to focus on the best pairs and charts, providing the best setups at any point in time.
Thanks for reading, and I hope this helps if you had any questions regarding how you should approach the forex market.
There is not one pair that is good to trade ALL the time. Diversify and always keep an eye on the entire market for good opportunities.
