Is it wrong to have a favorite asset to trade?

Having one market that you’re a Jedi Master of, can help you become more of a specialist, and specialists are people who make the most money in life (think surgeons, lawyers, pro athletes etc.) You don’t have to only trade one market, but focusing on a small handful of markets and having one of those that is your favorite can be extremely profitable and here is why:

  1. You become familiar with it’s moves thus you have no doubts when it comes to opening positions be cause you are fairly certain it will go your way
  2. You fight over analysis and you remain calm and clear headed.
  3. You will never spread yourself too thin. Thus, you manage your risk more appropriately. Since you are only trading 1 you will never over leverage yourself(Forex)
  4. You will have enough will to curb the temptation of trading thus less unprofitable trades.
  5. Higher returns. Since all your account is used to trade one asset you may open bigger positions which in return would yield bigger profits as opposed to spreading you account balance across a multitude of markets
  6. It’s the stepping stone to master other markets, you will now know the game and what it entails.

If you are a beginner try focusing on only one Forex market for a few months, pick one you feel the most comfortable with and that you know the most about and really get intimate with it. Of course, before you can successfully trade any market, you need to learn to read a price chart and the price action patterns that appear. Getting familiar and ‘intimate’ with one market’s price action is really the core objective for any novice trader. Once you master one market you can start adding more.

You might like

JOIN THE DISCUSSION

%d bloggers like this: