How to manage multiple currency pairs effective in the forex market

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Forex trading is such a lucrative business that every single day the number of retail traders in the forex market is increasing at an exponential rate. In the past trading was only limited to large banks and institutions since no leverage provided in trading the exchange traded funds. But nowadays much high-class broker like Saxo is providing excellent trading conditions to the traders around the globe and now they are serving the new trading community in Singapore. If you look at the success rate of the Singaporean trader then you will be surprised to see that most of them are doing pretty well in forex trading since they are learning the real art of trading by accessing the Saxo academy which is enriched with high-quality trading materials. In this article, we will discuss how to trade the multiple currency pairs in the market by following all the basic trading rules.

Scale down the lot size: The first thing that you need to do is reduce your lot size in the market if you are intending to trade multiple currency pairs. Most of the novice traders’ risk two percent of their account capital in the exchange traded funds even though they are looking for multiple trading opportunities in the financial market. But if you intend to open three trades at the same time then you will be basically risking 6 percent of your account capital in the market. So you need to reduce the risked amount in every single trade to 1 percent so that the cumulative risk amount doesn’t exceed 2 -3 percent in the market. And also make sure that you are trading with a reliable broker like Saxo which offers excellent professional service to the traders.

Avoid trading the reversal: Trading multiple positions in a single trading account in the exchange traded funds is extremely risky and requires a great deal of trading knowledge and expertise in the forex industry. Most of the novice traders tend to trade the reversal in the market in the multiple currency pairs at the same time and thus end up with a huge loss in the market. As a professional trader, you should always make sure that you are executing your trades in the market in favor of the long-term prevailing trends in the market even though the market will tempt you to trade the reversal.

Do the fundamental analysis: Fundamental analysis is often considered to be the most powerful price driving catalyst in the forex market. Most of the professional price action traders in Singapore always do the fundamental analysis before executing their orders in the market. If you tend to trade multiple assets in the market then make sure that the fundamental analysis favors all your trading decisions in the market. If you find any discrepancies in the fundamental analysis along with the technical analysis then you should avoid that trade in the market and wait for the next trading opportunity.

Summary: Trading the multiple assets at the same time is one of the hardest parts in forex trading since you need to take care of lots of things in the market. However, if you wish to execute more than one orders at any given time make sure that you are doing the fundamental analysis along with the technical analysis. As professional traders, you should also resize the lot size of each trade in the market so that the overall risk exposure doesn’t exceed more that 3 percent of trading capital.