It is one thing to trade in the best markets and another to trade in your favourite market. It is however highly recommended that you find one market that you are comfortable with, learn it until you become familiar with it and trade it so that you become an expert at it.
The reason is not far-fetched when you have learnt so well about a particular market, you become more of a specialist in that regard and it is common knowledge that specialists such as lawyers and surgeons earn the most. You do not have to trade only one market; you can learn a few and select a favourite from there. For instance, someone living in the U.K has the most information about trends there and may settle to trade GBPUSD as a favourite.
It takes a lot of practice to be successful at any venture. Just as it would be safer to assume that a person who trades AUDUSD majorly will be an expert over someone who trades 15 currency pairs. This is clearly because such person must have had a lot of practice and focus on the AUDUSD pair than other traders who deal with multiple forex pairs. Focusing on a particular market gives a deeper understanding of the market and helps to notice trends faster.
Most traders lose in currency trading the currency exchange or forex exchange market is because they have too many variables and analyses to deal with. Their divided attention results in poor analysis, over-analysis and over-trading in the market. This often times results in terrible decisions that affect trade negatively.
When you focus on one forex pair, you gain deeper insights into price action and dynamics for that pair. Most pairs are correlated and as such, your understanding of other pairs deepen. Your fx trading in the foreign exchange market becomes easier because you are dealing with fewer variables.
When you trade more than one platform, you deal with more information, more figures, graphs and charts. This usually becomes overwhelming and confusing. Such analysis usually results in bad judgment, bad trades and loss for the trader.
To curtail such development, it is better to start with a market as your foundation, analyze, trade. When you have built on that and have a deep understanding of the intricacies and dynamics of that market, you may add other foreign currency pairs.
Day Trading the SGX Singapore exchange or buying stocks in Singapore while monitoring Singapore stock price is different from the forex exchange or forex trading which has much higher volatility and you could potentially lose all your capital if you are not prudent with your risk management. Singapore Stock market trading has lower volatility in comparison to Currency Trading and Commodity Trading.
Many currency pairs correlate and it is dangerous to trade in these multiple pairs at the same time. There is really no safe way to stake multiple positions in multiple currency pairs at the same time. Trading a favourite market however helps curb this risk as you are less likely to over-leverage your account.
Traders often times make losses because of over-trading with all kinds of trading strategies when they are faced with multiple markets. Dealing with your favorite market reduces the risk of losing money unnecessarily because you have less trades to execute.
Day Trading or Fx Trading is no walk in the park. It has a high failure rate and most starting traders do not realize what they have to go through in order to achieve success in trading.
Getting familiar with a particular market should be the primary objective of a new trader. When you must have gained mastery of that market, you may diversify your portfolio.
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