How many markets do you trade and why?

Doomberg

Established member
960 75
Ok I'm happy with my trading techniques and I currently trade 2 markets, the Dow Jones and the Eur/Usd. Now my concern and main question is; are signals different in each market? For example if I see something happen in the Euro over and over but my brain only saves it as "a chart pattern" what if I am trading the Dow Jones and see this same signal and think "signal" is it likely to have a similar effect? Do certain markets move differently? Could day trading different markets actually cloud the mind and muddle you up in a counter productive manner? Or could you trade 1/2 a dozen markets and just take the signals as and when they come with no problem?

Cheers and happy new year traders :clover:
 

BeginnerJoe

Senior member
3,329 350
I wanna trade 1 million markets. Out of that, there would be more opportunities more of the time. I believe seeking opportunities from insufficient number of markets is the main reason for loosers.

On the fundamental level, I believe all financial markets are manipulated and operated in the same way. So if you have a good strategy, it will be applicable to all markets
 

Traderallen

Active member
248 41
As with most topics concerning trading the markets I'm sure there's not one correct answer. I prefer not mixing my trading system and markets. This helps me to stay focused on my current plan for each market. For example I only scalp the currency markets, usually the European session. When the US markets open I switch my focus to equities where I swing and position trade using the daily charts. I prefer doing this with options contracts so it's a little time-consuming. I also trade commodities which I buy based on seasonality so I tend to hold these for one to three months. Each market has its own rhythm and he must align yourself with that rhythm to make money.
 

Shakone

Senior member
2,458 665
I usually only trade 2 markets, though I look at several others. I think every market I've studied has its own individuality. They do the same 'sort' of things, but in their own unique way,a nd with their own habits.
 

kimo'sabby

Experienced member
1,623 287
Here's what i believe.

1. There should be an inverse correlation between trade frequency and the number of markets traded.

2. An entry method should work/be applicable accross all/most markets.
 

new_trader

Legendary member
6,538 1,417
Ok I'm happy with my trading techniques and I currently trade 2 markets, the Dow Jones and the Eur/Usd. Now my concern and main question is; are signals different in each market? For example if I see something happen in the Euro over and over but my brain only saves it as "a chart pattern" what if I am trading the Dow Jones and see this same signal and think "signal" is it likely to have a similar effect? Do certain markets move differently? Could day trading different markets actually cloud the mind and muddle you up in a counter productive manner? Or could you trade 1/2 a dozen markets and just take the signals as and when they come with no problem?

Cheers and happy new year traders :clover:

Yes.
 

NVP

Legendary member
37,534 1,988
Ok I'm happy with my trading techniques and I currently trade 2 markets, the Dow Jones and the Eur/Usd. Now my concern and main question is; are signals different in each market? For example if I see something happen in the Euro over and over but my brain only saves it as "a chart pattern" what if I am trading the Dow Jones and see this same signal and think "signal" is it likely to have a similar effect? Do certain markets move differently? Could day trading different markets actually cloud the mind and muddle you up in a counter productive manner? Or could you trade 1/2 a dozen markets and just take the signals as and when they come with no problem?

Cheers and happy new year traders :clover:

Trend followers trade as many markets as possible to optimise their Big winners (with some caveats) Read Micheal Covel

On the 2 markets you mention I would humbly advise that they will tend to correlate strongly anyway

N :smart:
 

bbmac

Veteren member
3,584 787
I learnt recently that the 'best' traders at a certain well known prop shop trade 1 market only - their market of choice. The advantage of trading one market is obvious but there will be times that you miss opps that may be present on other instruments/markets I guess. I personally shoose to trade 1 instrument using multiple set-ups that make up my edge as opposed to more markets/instruments and presumably fewer set-ups. I am not sure you could do both effectiveloy ?

G/L
 
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BrightFX

Newbie
6 0
I trade just EURUSD. I agree that it is best to trade just the one market, especially when you are starting trading. A really important part of trading is knowing how a market behaves and each currency behaves differently. You need to focus on one market before considering to trade others.
 

ffsear

Senior member
2,158 439
I trade all the major forex pairs as well as US equities.

I believe you can trade any and as many markets as you like as long you understand the princapels of supply and demand and are able to effectively identify when a market is trending, and when it is range bound.

The rest (the hard part) is all down to your personality, discipline and your ability to manage risk
 
 
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