Trade One at a Time

Never try to trade everything you see. Keep your trading activity limited.

Focus only on the highest probability set-ups.

Concentrate on one trade at a time so you can give it the undivided attention it needs.

A common mistake made by traders is trying to take on too many positions at once. They will have open positions on four different currency pairs simultaneously.

It is extremely dangerous when you have multiple positions at once because your concentration is then splintered between your positions, and if you lose focus at the wrong time, there goes your money!

Inexperienced traders also believe that a higher number of positions will translate into higher profit. “If I open positions in multiple pairs, one of them will win big.” Too bad this type of thinking usually leads them to losing big instead.

Understand that you are only human and can realistically focus only on a small number of opportunities. When trying to decide between several trades, pretend you are picking fruit. Look at all them but only pick the best looking one.

Trade one at a time.

Trading one position at a time won’t guarantee that you’ll consistently earn profits. I will guarantee that you will minimize your losses and will keep you in the forex game longer. Hopefully long enough to where you are able to consistently earn profits.

  • Abnerb

    Now you tell me. (smile) This is a very true statement that I learned the hard way about. Good thing that I learned while practicing and not using real money. I have been training in a demo account for a little over a year now and will remain there until I feel that I know enough to make consistent profits. Meaning keeping more than I lose, consistently.

  • agapetos

    Hi,
    I agree with you that it is really hard to keep focus on a smaller time frames, but do you think that it is the same way for longer time frames?
    For example I was trying out one system that is based on a trend, and the positions are made from 4h chart. I could say that it proved very easily for me to follow simultaneously 20 charts. Every now and then on some of the currency pairs a good opportunity would pop up, and I would be there to catch it. I must say that I agree with you that I was not that profitable on each of those trades as if I would be if I concentrated on only one. But… is it true that a single position on a single pair is more profitable on the long run than simultaneous work with 20 currency pairs?
    Also, what about trading on a daily and weekly chart, when you can give much more attention to each currency pair?

  • Abnerb

    Now you tell me. (smile) This is a very true statement that I learned the hard way about. Good thing that I learned while practicing and not using real money. I have been training in a demo account for a little over a year now and will remain there until I feel that I know enough to make consistent profits. Meaning keeping more than I lose, consistently.

  • agapetos

    Hi,
    I agree with you that it is really hard to keep focus on a smaller time frames, but do you think that it is the same way for longer time frames?
    For example I was trying out one system that is based on a trend, and the positions are made from 4h chart. I could say that it proved very easily for me to follow simultaneously 20 charts. Every now and then on some of the currency pairs a good opportunity would pop up, and I would be there to catch it. I must say that I agree with you that I was not that profitable on each of those trades as if I would be if I concentrated on only one. But… is it true that a single position on a single pair is more profitable on the long run than simultaneous work with 20 currency pairs?
    Also, what about trading on a daily and weekly chart, when you can give much more attention to each currency pair?

  • jonboy700

    I think a major issue for beginners is, seeing the opportunity of day trading is lack of control due to greed (speaking from 1st hand experience). There’s a world of opportunity yet we want to conquer it quickly – not a reasonable scheme, even to the most sensible person. Calmness in the midst of the torrent is the only disposition.

  • AnzuTheChosen

    Wow, I could not have read this article at a better time (well maybe last night :-P ). I’m a forex noob and was doing some trading last night. I had been doing really well so I thought I’d up the ante by opening a few positions at once….big mistake. Took a huge hit, around 30%. I will definitely try to focus on one trade at a time now. But its a daily struggle to control your emotions while trading. Like jonboy700 said, Calmness is key. Anyways, thanks for this great advice.

  • jonboy700

    I think a major issue for beginners is, seeing the opportunity of day trading is lack of control due to greed (speaking from 1st hand experience). There’s a world of opportunity yet we want to conquer it quickly – not a reasonable scheme, even to the most sensible person. Calmness in the midst of the torrent is the only disposition.

  • AnzuTheChosen

    Wow, I could not have read this article at a better time (well maybe last night :-P ). I’m a forex noob and was doing some trading last night. I had been doing really well so I thought I’d up the ante by opening a few positions at once….big mistake. Took a huge hit, around 30%. I will definitely try to focus on one trade at a time now. But its a daily struggle to control your emotions while trading. Like jonboy700 said, Calmness is key. Anyways, thanks for this great advice.

  • shortpipin

    DR. PIP SLOW I HEARD YOU ARE THE GUY TO ASK ABOUT NUMBERS REFERED TO AS PSYCHOLOGICAL LEVELS RELATED TO FOREX TRADING. WHY ARE 00 LEVELS REFERED TO AS PSYCHOLOGICAL LEVELS? WHAT ARE PSYCHOLOGICAL LEVELS? WHY ARE THERE PSYCHOLOGICAL LEVELS? HOW CAN PSYCHOLOGICAL LEVELS BE USED TO TRADE FOREX? OR CAN YOU RECOMMEND ANY READING THAT CAN ANSWER MY QUESTIONS?

    THX

  • shortpipin

    DR. PIP SLOW I HEARD YOU ARE THE GUY TO ASK ABOUT NUMBERS REFERED TO AS PSYCHOLOGICAL LEVELS RELATED TO FOREX TRADING. WHY ARE 00 LEVELS REFERED TO AS PSYCHOLOGICAL LEVELS? WHAT ARE PSYCHOLOGICAL LEVELS? WHY ARE THERE PSYCHOLOGICAL LEVELS? HOW CAN PSYCHOLOGICAL LEVELS BE USED TO TRADE FOREX? OR CAN YOU RECOMMEND ANY READING THAT CAN ANSWER MY QUESTIONS?

    THX

    • https://www.udacity.com/course/ps001 Johnny Franco

      Class Summary

      Introduction to Psychology is a journey through all of the major psychological concepts and principles. The knowledge gained from this course will allow students to critically evaluate psychological research and have a more in-depth understanding of human thought and behavior.

  • adebaba7

    Wow! Great idea. I strongly subscribe to the idiology of concentrating on a pair rather than be a jack of all trade and a master of none.

  • adebaba7

    Wow! Great idea. I strongly subscribe to the idiology of concentrating on a pair rather than be a jack of all trade and a master of none.

  • ykchin7

    Concentrating on one pair is good because different currency pairs have different price behaviours. By concentrating on one pair, you are able to be familiar on how this pair behaves. You can master this pair and know the appropriate take profit and stop loss levels.

  • ykchin7

    Concentrating on one pair is good because different currency pairs have different price behaviours. By concentrating on one pair, you are able to be familiar on how this pair behaves. You can master this pair and know the appropriate take profit and stop loss levels.

  • https://www.udacity.com/course/ps001 Johnny Franco

    Class Summary

    Introduction to Psychology is a journey through all of the major psychological concepts and principles. The knowledge gained from this course will allow students to critically evaluate psychological research and have a more in-depth understanding of human thought and behavior.