Disliked{quote} Hello Emmanuel: How to really distinguish between my 5 pairs and the backup pairs? or they are just our least favorite pairs? Because when you mentioned "just in case I need to recover some losses", does it mean these pairs are like PLAN B, if the fav 5 pairs (Plan A) go wrong? So, do you suggest for correlated pairs like EJ, GY, AJ , it's best to choose one of them even they are presented with good trading opportunity? By the way, your recommendation reading , Money Management Report (Van Tharp), is good, eye opening for me~ i think i need...Ignored
Hi,
Ok, I will keep this beif.
With 16 pairs in my market watchlist, I pick only 5 pairs to trade.
1% to 2% risk per pair, and this will be maximum risk of 10% starting this week.
My target remains the same - i.e. 10% profit per 20 trading days. Last week was an exception I had 36% in 3 trading days. But not every week is like that. I still try and work hard to achieve 10% during the next 20 trading days. I work hard on maintain CONSISTENCY every week and keeping my drawdown low as possible.
You read that Van Tharp pdf and you know what he mentioned about drawdown and how difficult it is to recover from drawdowns.
When I pick the pairs t trade, I distribute them and avoid trading the same pairs which are in the same group.
Look at the currency pair type and their correlation to avoid getting wrong is several correlated pairs in the same week/cycle.
You know about the USD index, study that.
regards,
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett