Importance Of Sticking To One Financial Instrument.

[moonchild]

When starting out in Forex it is tempting to dabble into many pairs and trying out different strategies in other to make more profits, but as the saying goes always 'less is more'.

When starting out you'd like to have domain knowledge on one pair and understand how it moves, this is will put you ahead of others because while others are trying to learning everything about other currencies you've done half of the work by focusing on just one.

When you wake up everyday you know where you left off and how you can move forward with analysis instead if starting from scratch allover again.

Also, when selecting a forex pair as a beginner you want to focus on the less Volatile ones at first because of liquidation, Volatile currencies move fast which means you can get liquidated quite easily.

I can reflect this back to when I was starting out I was advised by my mentor to stick to one pair and I was a bit hesitant, which made me lose a good deal of my starting capital.

The currency pair I started out with was AUDUSD and that single decision really helped me to learn forex thoroughly

Some low Volatile pairs are
EURUSD
AUDUSD
USDJPY

 

[King bell]

Sticking to one financial instrument is one of the most important things you can do to grow your wealth.

If you are a person who has been investing in stocks for many years now, you might be wondering why it matters if people stick to one financial instrument or not. The reason is that over time, different instruments tend to perform differently and by exposing yourself to only one instrument, a person can cut down on the volatility in their portfolio. For example, if someone has an investment portfolio that contains both stocks and bonds, they should be aware that when the stock market goes up, their bond holdings may not rise as much because bonds are usually less volatile than stocks.

Of course, the opposite is true when the stock market is down. Since bonds are less volatile than stocks, the bond holdings will grow at a slightly faster rate than their stock counterparts. But if you have been following a standard portfolio for many years now and you have been using one financial instrument to invest in stocks, it might be time to consider different options.

 

[Asahi]

Revenge-taking tendency may turn you dead in forex. Never nurture the tendency of taking revenge on the market because it will throw you out of the market and you can’t survive here for long. So, to become a careful Forex trader, you must be devoid of this quality. Eurotrader allows traders with 111% deposit bonus.