There are many currency pairs in the world and you can pretty much trade them all if you want to. And I know a lot of people think that spreading their trades among multiple currency pairs is somehow better than sticking to just one or two.
Why just limit yourself to the EUR/USD and the GBP/USD when you have the Brazillianb Real, the Jordanian Dinar, and the Israeli shekel, right?
Well, it’s a nice feeling to spread your trades around but do you really know what you’re doing?
In most cases you don’t. Unless you’re a 100% technical trader and don’t care about the country behind the currency, you’d be wise to limit yourself to as few currency pairs as possible. I say this because each pair behaves differently, is affected by different news and financial reports.
To make things short, to become an expert in anything you need to focus. You can’t spread yourself too thin. You will not get anywhere in this way. Trust me. It’s the same in anything in life.
Which pair should you choose?
I would go for either one of the majors or stick to a currency you know well (where you live) and it’s relation to the 4 major currencies: USD, EUR, GBP, JPY. There is enough trade volume in these 3 to make a ton of money. There’s no need to spread yourself thin.
Focus on a few pairs, become proficient in trading them profitably and then move on to another pair and so on and so forth.
It’s the best way to learn the ropes as quickly as possible.
