One of the most common mistakes traders tend to make is to focus just on one or two currency pairs.
Let me tell you what happens when you decide to do that…
You see, sometimes it’s very difficult to determine what the market is likely to do… And not because we are not good traders/analysts but because sometimes the market behaves in unexpected ways…
There are days that it’s just impossible to trade!
If you focus in just one or two currency pairs, you are going to force yourself to take trades when the odds aren’t on your favor…
What do you think will happen if you constantly trade against the odds?
Sooner or later your account will suffer…
Now, imagine that instead of trading just with one or two currency pairs, you decide to expand your horizon and look for the currency pairs that have the clearest market conditions?
So at the end, you are will be trading with the odds on your favor.
And the same question…
What do you think will happen if you constantly trade with the odds on your favor?
Sooner or later your account will thank you…
Ok, so now… How do you decide which currency pairs to trade?
Let me show you this NZDJPY chart:
What do you see in this chart?
- Clear S&R levels
- Clear market swings
That’s all the information you need…
When you see clear S&R level and clear market swings, you know what the market is doing and what it is likely to do.
Since the NZDJPY got rejected from the upper resistance level you know that it is likely to continue its way down… so what are you going to do?
Look for short opportunities…
And you are going to keep doing it at least until the market reaches its next support level at 86.38
You dont need more information than that!
So even if you are a daytrader, you need to look at the long term charts to determine what currency pairs to trade.
How do you filter out the bad trades?
How do you choose which currency pairs to trade?
Are you gong to trade the NZDJPY?
Share your thoughts.