[permanentjaun]

Anyone only trade one currency?

I'll admit that I'm getting burnt out trying to find my own strategy. I look at charts all day. I find a strategy that I feel works and then I look at a different time frame to look for confirmation and everything I worked on is thrown out the window.

Then, even using the same strategy on different currencies just doesn't seem so great. I don't know why I don't feel like I had these problems with stocks.

Again, I'm trying to go KISS. So now I'm considering looking at just one currency. Since I can easily be long/short I imagine I could always have a position in it. Am I digging myself into a hole thinking like this?
My thinking is that currencies are always moving. Stocks can go into periods of inactivity as volume leaves them. Currencies, especially the majors, always have volume. There may be sideways movement in a day, but week by week it seems that they will move at least 100 pips. If you count the total up/down and add them it could possibly reach 500 pips. There seems to always be money to be made/lost.

I'm posting this for one, to get some frustrations out, and two to ask the opinions and advice of others. Have others tried trading just one currency? What troubles can I expect to experience when doing so? Are those troubles any different from trading multiple currencies? Am I only shooting myself in the foot by trading just one currency?

All opinions welcome.

Burnt out in the October heat. Matt

[fxValius]

Hi,

Try to build your strategy by asking yourself what do you know about the markets, how the markets move and not by looking at several time frames and instruments. Make it as simple as possible.
Of course at the beginning it is better to trade one currency pair(i recommend dollar pairs), because you have to familiarize and feel how it moves.
Personally i trade only EUR/USD and GBP/USD.

[JohnJay]

Trading one currency pair would be advisable if you are learning about forex. It definitely would give a trader enough action. Like you said, they are unlike stocks which can lay dead for months. If you feel overwhelmed trading only one then it will be worse trying to trade many others. It will be more confusing to try and pinpoint where your errors may be then try to rectify them.

I guess your decision also depends on your strategy. If it is a uniform approach with other currency pairs then trading more will give you more opportunity to trial your system. If you have a strategy which requires you to focus on a forex pair, then you might be better off trading less pairs.

...Just my opinion.

Personally, I trade many pairs at once. Up to 10.

[SoundFX]

I have recently tried to limit my pairs, down to GBP and CHF mainly. As far as strategy, try using nothing but trendlines. You want KISS? That's it. There is no better methoed IMO for entering and exiting trades than the humble trendline. Try varying methods of drawing them as well. The low to low and high to high is fine, but for more accuracy, one needs to be able to see how to draw trendlines through the MEAT of the market. Admittedly, this takes a little more knowledge, but not much. Kind of an art.

-S

[JR97]

I used to trade every pair under the sun thinking I could "average" out. But now for me, it boils down to USD pairs or JPY pairs. So now I only trade USD/GBP because it moves the most most per day out of the major USD pairs. I have done very very well with that. Occasionally I'll dip into another pair if I see a setup, but only if I see a bone fide setup. On pound, I trade every nook and cranny.

Anywho.. do what feels right to you. I have profitable friends that trade multiple pairs and do very well. I also have losing friends that trade only one pair and get their ass handed to them daily.

[cka6c]

I agree with KISS, keeping with a simple strategy at first seems to be the most advisable. There are so many people out there who think brokers who offer x amount of currency pairs are better when in reality even great traders stick to the majors.