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How many instruments is it better to trade on the Forex?

I am often asked the question:  what asset should I trade and should I make a selection or focus on one instrument? . I will try to answer this question.

I will immediately note that I am not a supporter of trading one instrument. Even if you are a beginner, you can trade everything, but for the first time, you can use the most liquid top futures and stocks. And do not take expensive tools, such as the RTS index. Although it depends on how much capital you have. For someone, the amount of 1-2 million rubles is absolutely not significant. In this case, you can also enter the American market, if it is suitable for the trading time.

How many instruments is it better to trade on the exchange - one or several?

Why do I need to make a selection?
So, as far as you know, the market has two States – sideways (accumulation) and trend (distribution). For the most part, it is located in the sideways direction and spends 30 percent of its time in the trend. And first of all, positional trading (short-term and medium-term), trading on large volumes is a trend trade. Scalping and active trading will not allow you to earn a lot of money due to limited liquidity. Therefore, any scalper, if successful, will sooner or later switch to positional trading. Or at least it will shift the focus to it. Scalping models for me, at the moment, are an addition, since it will not be possible to scalp a large volume. I will devote a separate article to this topic later

Therefore, I do not see the point of trading on a single asset, which can be in the sidewall for 1-2 months and, in addition, it may not have good entry points. Trading is based on mathematical expectation, and the task of the trader is to find such points that give this positive result. expectation. And there is no point in trading everything. Even if you are scalping, you need to find high-quality signals that will give this positive result. expectation. You can spend a lot of time watching a single tool, but you can't find a high-quality entry point. This, by the way, is the most common mistake of beginners. Try to stay in a position all the time, even though there are no signals to enter. It can be very sad to sit at the computer for 5-6 hours, but never make a single transaction. Many people begin to feel that they are wasting their time. And as a result, they begin to make haphazard transactions, which leads to losses. You can make 4-5 transactions per month and show the result, or you can make 200 transactions, but you can merge successfully.

I believe that successful trading depends on the correct selection of instruments. Why trade where there is no trend, there is no activity and the price is in balance? Therefore, it is very strange when you are advised to focus on one tool and understand its logic. When the price is 2 weeks in the sideways position, there is no logic there, you do not need to trade such an asset. It is better to find a tool where there is a strong trend and activity, it is in the trend that there are major players who push the price. And this will allow you to earn.

The second important aspect. There is no point in freezing funds in the account. It is for the reason that money should not linger and should work, I do not like to trade one instrument and perform entry points where you can sit for a long time in a pose without movements of the asset.

For example, when there is a strong trend and a deep correction begins, the instrument may go into a prolonged sideways movement and repeated accumulation, which may be delayed. Many people start to catch the tool on such corrections. First, often, in this situation, it will not be possible to perform a selective entry point with a short stop, and secondly, the price may go sideways for a week or two. What is the point of freezing funds when you can trade another more interesting asset? And the same breakdown of the level it gives activity, begins to develop at least some scenario. If everything is done correctly and the desired level is selected.

Therefore, in order to show maximum profitability, you need to make the right selection of instruments, find the right entry points and trade on those instruments that have activity. Shares usually give no more than 3 leverage and you still can't hold more than 2 -3 positions. Therefore, it is stupid to buy an instrument that is unlikely to show a strong movement. Also select tools that are not correlated with each other.

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