Why You should stick to one currency pair as a beginner

[moonchild]

Forex has different currency pairs and most of them move differently and have different volatility, it is overwhelming for beginner to focus on all of the pairs, you'll be worn out easily and you'll lose your drivs in time, our attention is very limited as human being and demanding tasks can easily wear us out in no time.

When I was starting in Forex I was on every pair trying to figure out what do do and entering trades barely knowing what market is doing until I met my mentor who held my hand and give me some golden nuggets which are ever green till this date.

He said I should focus on one currency pair alone and I did that and I tell you guys the results were tremendous because I didn't have to do much most of the times, all I have to do was, to just check and see if price have reach the level I want to place a trade, I stopped trading impulsively.

The currency pair I'll advise you is AUDUSD, it's not Volatile and it doesn't have a lot of noise, go to the higher time frames and make your chart analysis down to one hour, master this pair before adding another one.

 

[Mary Frederick]

Sticking to one currency is sometime okay but not always because the market situation of a particular currency doesn’t always remain stable. So, during the unstable situation, it becomes hard to trade. That’s why it is essential to keep several pairs as alternatives.

 

[Setho]

The forex market as well as other financial market is often very complex and as a matter of fact there might be very big differences between various market . It is very important that I see beginner you should undergo education and then bring in your own strategies. This does not mean that this strategy is going to be applicable to every market as you also need to do some research about it as well . For example it is known that the USD and pound market pairs known for very strong and unexpected market reversal which is not the case with the Australian dollar .

This is why it is very important for you that you should as a beginner focus on only one currency pair and be very good indeed . After some time you can choose to expand because no matter how different markets are going to be there is always that particular thing that is going to be binding them together . For example you are always going to use the same technical analysis principles and approach for all the markets and as such learning technical analysis once means that you can be able to apply it or adjusted to all the market as the case may be.

 

[Tactical]

All trading pairs move differently. So, in the beginning days of your trading, it is a good move to stick with one currency pair. But as you gain experience you should diversify your currency pairs to reduce risk.

 

[Jack Reacher]

Initially, traders have zero knowledge on the trading market! So, if they focus on multiple trading pasirs, then their learning process will be full of madness! They should start their learning process with a single currency pair like EURUSD! But gradually, they can increase the number of trading pairs!

 

[glabella]

Beginners should prefer one of the major currency pairs and analyse that pair fundamentally. Understand the behaviour and reaction of the currency pair to certain financial events.

 

[waldgrave]

All currency pairs move differently, and you need to do a different analysis for each of them. Moreover, strategies you use for EUR/USD may not work for USD/JPY. Thus, in the beginning, to avoid getting confused, traders are recommended to begin trading with one pair only. You can add more currency pairs to your portfolio as you progress.

 

[stefan16]

I guess to be familiarised first with how things work, and what to look for, understanding any pair first before simply jumping into trades blindly, i would suggest learning some major pairs like the EURUSD and stick with it before moving to other pairs

 

[cashisking149]

For me, I think one pair is all you need. I use EURUSD and use DXY as a reference and find more than enough opportunities on lower time frames. No need to take loads of trades either.

 

[Nimrod]

Being too new to the market, beginners need to spend a great amount of time to analyse the price movements of a currency. And because all currencies move differently, it will be difficult for traders to understand them properly. They should stick to one pair at a time when starting.

 

[Ponmo]

Trading too many pairs simultaneously as a beginner can confuse you and you may face heavy losses. It is important for newbies to master one currency pair first and then move on to others. I’d also suggest to start trading with one of the major currency pairs and avoid trading minor and exotic currency pairs until and unless you have a good amount of experience in trading.

 

[Polyglot]

A lot of factors influence the forex market. When you are trading a currency pair, you have to keep track of the fundamental research and analysis of both the currencies (your base currency and your quote currency). As a beginner, it is not easy to do too many things at a time. Start with trading one currency pair only. When you have gained expertise in how to analyse, and form trading plans, you can try trading two pairs at a time.

 

[Tubiform]

Newbies should prefer to stick with a single trading pair as trading with multiple trading pairs might confuse the trader and decrease the productivity of the trade.

 

[Sombole]

I only used to trade with the EUR/USD pair when I was a beginner. Sticking to a major pair is best as they are less risky in my opinion. Mastering one pair is comparatively easy for a newbie and also helps to minimise losses to a great extent.

 

[Numiinous]

Sticking to one currency pair also means that you will develop your knowledge about that pair. When you choose to trade so many pairs, it becomes difficult to analyse all of them, especially if you are new to forex. Now that does not mean that you should not trade more than one pair; it just means that you get comfortable with a single pair first and then choose other pairs.

 

[Spittle]

Every pair of trading moves differently. Therefore, it is wise to stick with just one currency pair when you first start trading. To lower risk, you should diversify your currency pairs as you gain experience.

 

[Jenet]

It is better to stick to one currency pair to understand everything that goes on during the process. Undivided attention towards keeping an eye will give you a better understanding of market sentiment. You can save your capital, too.

 

[Chockcroal]

All pairs trend differently. It’s good to trade with one pair in the beginning, so you can develop an understanding of pairs. Moreover, keeping an eye on multiple pairs at the beginning can be challenging. Trade with one for a while. Later on, you can diversify your portfolio.

 

[Asahi]

If you are thinking about how to build your trading career, then Forex can be a solution to your worrying. Forex is a flourished business that can make you rich if you can control your losing amount.

 

[Economacy]

For beginners, yes, I think it is important to stick with one or two currency pairs. Currency pairs can behave differently, and your strategy might need modification from one pair to another. Also beginners are advised to stay consistent on one strategy. So yes, for beginners, they should always stay consistent with their strategy and pair for at least the first year of their live trading. They can slowly and gradually shift on to another pair, but it is better to trade only one pair at a time.