this is the Forex Q&A podcast this is VP professional Forex prop trader and
creator of nononsenseforex.com -- Mission Control for all things Forex a
great blog all the videos that end up on my youtube channel
this here podcast and a place called ask VP where if you click on that tab you
can ask me any forex trading related question that you want to ask and I will
answer you very quickly and often at times it's gonna make an episode of this show
and what I've done so far is take the more basic Forex questions and answer
those first because I don't really know who out there is listening do I have
mostly beginning traders do I have mostly people who haven't even traded
Forex yet and just want to or do I have people who have put five ten fifteen
years in and are just yearning to learn more or trying to make their trading
better I don't know you so I figure the best thing I can do is start with the
basics but regardless of how long you've been trading you're gonna want to hear
my answer to these questions because even if they seem basic to you I come at
things from such a completely different angle that an answer I give to even the
most basic questions might just be integral in changing your forex trading
around forever at least that's what I'm trying to
accomplish now when I say no-nonsense Forex I mean it the site itself is very
basic very clean very easy to navigate no ads just kind of a one-stop shop for
blog video podcast everything and that's on purpose every other Forex site you go
to has some measure of crap on it that you don't want to click on that you
don't want to see that you don't want to deal with hell even this podcast has no
advertisers it doesn't even have music I don't have an intro or an outro it's
just me in front of a microphone transmitting the best forex advice
possible straight into your headphones and here in episode 4 this question I
think is very important for all of you listening no matter how long you've been
trading because I will bet you don't trade like I do when it comes to my
answer to this question and I'm not so arrogant to sit here and say that you
should trade exactly like I do but I do trade professionally and I do trade for
only 10-15 minutes a day and then I get to live my life after that
that's pretty good I mean can we agree that doesn't suck? and if you want to get
closer to that I am going to show you how and as always when I answer a
question I'm gonna really state my case and give points to back up why I feel
this way and by doing that if I can get you further away from your old way of
trading that isn't very successful and into a much better and easier way of
trading then I've done my job so let's go ahead and get into the question this
question is from Tariq from New York City he asks how many currency pairs
should I trade and that was it very short question now guys I'm gonna tell
you my answer and it's gonna seem a little crazy but don't stop the podcast
finish this out and let me explain why I say what I say and I think you're gonna
like my answer at the end even though it's gonna seem a little bit unusual at
first when Tariq asks how many currency pairs should I trade my answer is 27
because that's how many currency pairs I trade in forex now I also trade metals
that's another conversation for another day but when it comes to actual spot
forex trading 27 pairs is your magic number and I'll tell you how I got there
but first I want to explain to the brand newbies what I mean by currency pairs
and how I got to 27 and for those of you who trade a lot less than 27 maybe just
one or two or three or four I want to tell you also and explain to you why
that is a gigantic mistake and how the mentality behind why people would only
trade so few currency pairs is just downright silly and really makes no
sense at all so first things first as far as the currency pairs that I trade I
take the 8 major currencies for some reason you don't know what those are
it's the Euro the pound the United States dollar the Aussie dollar the New
Zealand dollar the Canadian dollar the Swiss franc and the Japanese yen now if
you take every combination of those 8 major currency pairs and minus 1 you end
up with 27 now I do not trade your more exotic pairs you're crazy currencies out
there like the Mexican peso Turkish lira South African Rand things like that and
that's another conversation for another time again
I want to keep this podcast relatively short but those 27 give me the best
chance of winning and that's what I suggest you trade as well so I trade the
daily chart and I trade it almost exclusively and if you don't understand
why or don't know why go back to episode 3 and explain exactly why I do it and
why you should - I feel very strongly about trading the daily chart only and I
make a really good case for it so if you haven't checked that episode out please
do after you're done with this one and let's be honest if you're gonna trade 27
different currency pairs on a 15-minute chart you would lose your mind so what I
do is I take my little algorithm my little system I put together with my
tools and indicators and at 2 p.m. Pacific Standard Time I take a look at
all 27 of my currency pairs and I see if any of them tell me to do anything
whether it's make a trade maintain a trade I'm already in or do nothing and
move on to the next one and what's really good about having 27 of them
there is there's a chance a really good chance that I'm gonna do something on
any given day it really takes away a lot of that dead time that can happen when
you trade that daily chart because I'm getting 27 different chances for my
charts to tell me to make a move and this turns out to be really great I'm
usually never in more than three or four trades at one time it's very easy to
manage and you know I'm almost always in the market doing something but a lot of
you don't do that and I want to go over the reasons I hear the most of why
somebody only trades a few different currency pairs or sometimes only one
currency pair which I totally don't get so I will run into people who no
bullshit say I only trade the euro dollar and I say okay why
get answers like well it's the most liquid pair it's the one I want to trade
or I will get the answer and I really hate this one I just want to get good at
one currency pair before I move on to a different one so let's attack both of
those one by one first off the euro dollar is the most liquid pair yes I did
an entire video if you guys haven't seen this please go watch it it's on my
youtube channel I think it's on the site right now - why the euro dollar really
isn't a great pair to trade especially if you're new I do trade it but I'm a
professional who's been doing this a long time, I don't trade it nearly as often as I do a lot of pairs but for
somebody who's brand-new it has so much working against you you need to know
what that is and you need to move on to something different if you really insist
on only trading one pair don't make it the euro dollar that's the last pair you
should be in really any dollar pair and if you want to know more I'll link that
video down below for you but the people who only trade a few different currency
pairs only trade one because they they want to get really good at those before
moving on to other ones that is complete nonsense
when it comes to a daily chart over time they all pretty much move really close
to the same way people say things like well the the pound dollar likes to stay
in a range or the Aussie yen likes to trend yeah it's doing that right now
that doesn't mean it's going to do that into the future and the future is what
we are going to be trading to sit there and say the pound dollar does this and
the Aussie yen does this is ridiculous it's doing that right now check your
history go back does it always move like that
no it trends it falls into a range it consolidates it goes crazy it does
nothing for an extended period of time just like every other currency pair out
there you just don't know when that time is going to be if you sit there and say
the pound dollar is range-bound the one time it stops being in a range you're
going to get killed get that stupid mentality out of your head if I were
take the daily chart and take a random currency pair and
erase all the numbers and erase all the dates and set it at one given point in
time in the last I don't know three years and let's say I showed you kind of
a six months man but I didn't tell you when that span was and I were to just
show you the price action and I say okay what currency pair is this you would
have no idea I would have no idea nobody would currency pairs do not have
their own unique movement at least not on the daily chart which is really where
you want to be in the first place I will say it again currency pairs do not have
their own unique movement stop acting like they do do not be afraid of the
Swissy yen because you don't know anything about it or it's not super
liquid like the euro dollar is chart wise it moves the same as everything
else does just at different times of the year oh and some people also say well I
do really well on the dollar yen you have a lot of success there you have a
lot of success there now because it is moving in a way that really supports the
way you like to trade let me tell you in ten years of doing this all of that is
going to change you just don't know when and maybe the biggest reason why you
need to be trading many more currency pairs than you currently are is that
you're severely limiting yourself by only trading two three four pairs if you
have a really good system in place and I have a really good system in place but
you're only trading three pairs and I'm trading 27 I'm going to make a lot more
money than you are if you're trading three pairs and I'm trading 27 I have
nine times the opportunity that you have if you're only trading two or three
pairs you know who you are and we all know this girl you know that girl who's
really pretty but she's like 6 feet 3 inches tall and she only dates guys that
are taller than she is and then she wonders why she can't find a good guy
you are that girl sitting there wondering why all your relationships
fall apart but you're limiting yourself to only 2% of the entire population cut
the bullshit do better why wouldn't you open up your trading horizons take the
little algorithm little system that you put together for
yourself on a technical level duplicate that on 27 different currency pairs on
the daily chart and you're always going to have some kind of skin in the game
this is how you create the best chance of making the most money possible in the
market over time if I can somehow convince you to exclusively trade the
daily chart and to trade 27 different currency pairs all combinations of the
eight majors then you are a lot further ahead than many people let me tell you
many people who have put five ten fifteen years into this game already
because so many of those people have already developed the worst habits
they're so inside their head with their 15-minute chart and their four currency
pairs they like to trade because at some point in time they had success with it
and they can't get that success out of their head you as a newer trader get to
start out way ahead of these people the experienced traders the ones who have
put years into trading are the ones I'm gonna have to convince the hardest and a
lot of them are just gonna keep doing what they're doing and not listen to me
if you're a newer trader please start off the right way it is gonna put
you so much further ahead then not just people who are starting out with you but
people who've been doing this a very long time and you have a free podcast to
thank for that now I almost forgot this there is one currency pair one
combination of the eight majors that I do not trade which one is it
it is the Euro Swissy I am a trend trader the Euro Swissy at least now has
been tied together for such a long time that it doesn't really trend in such a
way to where it trips my algorithm and I can actually make money off it it's just
not worth my time and that's okay trading 27 instead of 28 is just fine
with me the euro Swissy is nothing but a headache it's more fundamentals
driven than anything which is really the last place you want to be and I am 100%
okay just completely eliminating it from my trading but the euro Swiss see I have
no time for so there it is to recap all of the episodes up until this one go to
baby pips comm slash school to learn how to trade Forex but make sure you listen
to episode number 2 where I tell you which parts you need to pay attention to
and which parts you don't trade the daily chart exclusively if at all
possible if you need convincing you're for need reasons why that's where
episode 3 comes into play and to really set up your best chances of winning
after that trade every pair every combination of the 8 major currencies
minus the euro Swissy and if you can just get this far let me tell you you
are well on your way to exactly where you've always wanted to be in forex
trading and if you're really serious about taking your trading further go to
the No Nonsense Forex YouTube channel it's all free there's videos there to
cover some of the most important forex topics that for some reason nobody has
ever been told before I'm blown away by how many people email me and say I have
never heard this discussed anywhere and I've never heard it explained the way
you explain it like I said I'm gonna link that euro dollar video below also check out
the big banks video check out the number one strategy video I mean this site the
YouTube channel the podcast is still brand new I barely have any content out
but even the content that's out there right now is really really great
I put my best foot forward put some of my best content out early so you guys
can get everything set up right and really get into that winning mindset
before we start getting more technical and drilled deeper into some of these
things so thank you for listening new podcasts out every Monday starts your
week right get yourself set up right go attack those markets make that money and
start setting yourself up to win and really dominate this market and I will
see you in episode 5 go get it