How Many Currency Pairs Should You Trade? (Podcast Episode 4)

How Many Currency Pairs Should You Trade? (Podcast Episode 4)


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

69 thoughts on “How Many Currency Pairs Should You Trade? (Podcast Episode 4)

  1. Man I wish I found you a couple years ago, you keep it real and I have a lot of respect for you. This Forex world is full of sharks trying to manipulate people. This is a breath of fresh air and does so much for my trading psychology. Thanks VP

  2. I like your vids and what you have to say but if you risk 2% on each trade and have 4 to 5 positions open at a time, that's a pretty big hit on your account if they all go south. Do you recommend a smaller % for newer traders until they get used to a system? Because im sure your winning % is higher than most watching your videos, other wise you'd b watching our videos.

  3. Hey guys. Whats up? My name is Tony and I am a novice at all of this. I have been listening to VP for couple days now. The information has been so so informative and delivered in away for me to understand I am very excited about what VP is doing and look forward to putting this into action. Lets do this.

  4. Even if you had nothing of value to add, you are by far, the clearest speaker I have heard! Now add that to the most valuable infomation presented and its off the charts!

  5. only a week after starting to follow you my last 4 trades have had a ROI of 2-3% each …
    even one that I sold of 50% went on to earn 1.5% before the TS kicked in and I dont even have the entire algo yet

  6. I WATCHED ONE OF YOUR VIDEOS …YOU TELLING EVERYONE TO AVOID TO TRADE $USD PAIRS BECAUSE IT IS TO RISKY… BUT YOU DO. THIS VIDEO IS CONTRADICTING….

  7. Well you have opened my eyes. I now understand why i get frustrated for entries as i am trading only in few pairs. Thanks for opening my eyes. Henceforth i am active and ready to trade all except EurChf

  8. It took me 4 years of losing money before awakening to the fact that I only needed to trade the daily and yes I do trade 27 pairs too. Weekly analysis and daily limit orders…. we all follow the same basic path if we just stick to it. Thanks, VP

  9. I am working my way through these clips. Can anyone recommend a good place to open a demo account-and why there compared to a couple of other places?

  10. How many pairs?? This only makes sense if we were to use your system to filter out all these pairs in a reasonable time. For the rest of us who are unable to guess how it works, it is simply not a manageable size.
    For those poor peons who are stuck with inadequate trading systems, this is absolute rubbish. We don't know your system and never will.

  11. The Steve Jobs of Forex, Less is More! Loving all your videos and I’m soaking them all up! 100% confident that you are going to teach me the skills to develop into a successful Forex Trader. Thank you

  12. You mentioned the 8 major currencies that you trade. As you said, these 8 can be paired in 28 ways. But you told us you only trade 27 of these pairings. Which is the one currency pair that you don't trade.? Really curious to know 🙂

  13. you said "you only trade 15-20 min a day right before the daily candle close" that was a really big hint, I think I know how you trade now

  14. Gold🔑🔑 since I first watched big banks video I’ve been more profitable in 2 weeks then I have 8 months in trading. Thank you brother.

  15. I love you, man! I'm an atheist in my personal life: I reject believing "just because", without a minimum of critical sense. And so are you in the Forex sphere: you are an atheist to conventional Forex way. And that's huge!! You are teaching people to trade based on how Forex really works and not on how people wish it worked.

  16. I listed to this podcast a few weeks ago and just "rediscovered" it while going through the list on the site. It dredged up a few past conversations, specifically with a nod to the statements that VP said. "Imma gonna trade one pair until I get good." Or, "This pair sucks ass…I'm gonna hold off for a bit and come back to it when looks better". I heard these all the time. But, I think the one I hear the most is about only trading the "majors". You know, the ones that the BIG BANKS like to diddle with and crush your grove. I'll admit, I followed the crowd and had those 8 pairs as one of my profiles. Who doesn't like to hang with the popular kids, right? At some point, I started a love affair with the EURJPY, the GBPJPY and the GBPCHF awhile back and was very pleasantly surprised to learn that they were favorite children in these hallowed halls. Did well with those…better than I had with the majors in fact. I also use to subscribe to that nonsense about trading "exotics". OMG, no! The spread, the volatility, the insanity! Actually, not really. In fact, if you just zoom out on the chart, they usually paint a prettier picture…mostly because nobody really tools around with them and most news just gets somewhat of a "meh" reaction. Gotta stop listening to morons. Frankly, I'm thrilled to have 28 pairs (the EURCHF is back in town, I believe) to fawn over and there may be a couple more on the horizon soon. PLENTY to keep an ambitious guy or gal busy for, oh say…30 minutes a day. Don't be a derp and leave opportunity knocking at the door all pissed off. Go get it.

  17. how do you pick which pair to trade? i've picked gbp against everything because it's usually largest ATR

  18. I actually dont like this video. There are some inconsistencies. Are you saying your methods work across all 27 currencies at all times? I feel it won't as all currencies have their own trading idiosyncrasies. Im not profitable but i think a lot of people will say the same thing. At the very leaat doesnt represent the complete and entire truth on this topic. This author sounds full of himself

  19. Just found you today, started trading in demo yesterday, glad I found you before spinning down the rabbit hole.. I love this no bullshit approach., I don’t watch media.. at all so simple is good. I can see myself doing this for a very long time

  20. I am Forex learner from India and we are only allowed to trade within the brackets of USD-INR, YEN- INR, GBP- INR and EUR-INR pairs.

  21. I can't simply be watching your amazing videos while reaping the awesome content you put up, without EVER saying a huge THANK YOU for doing what you're doing for us. I'm not a new Forex trader, but I already had the opportunity of Wrecking a trading account because of that non-applicable information that's usually posted everywhere on the internet. Thank you once more.

  22. VP your a damn fool for the Tall Lady Psychology level of Trader. Your information applied growth to my small accounts in a week , but being unfamiliar with your entire process I fumbled my gains. But the process is very powerful with removing traditional 99% mental understanding of trading. When I heard the podcast ep4 was so awakenking to me because I really want to become a carbon copy of the information you are making available for free is very appreciated because that takes a Godly hearted compassionate place in life that most never get to experience. So for you to leave a very powerful piece of information in the universe , I Thank You because I really want to be able to trade on a successful respectful level that I can teach others or at least trade for the team that really enjoy the relationship of trading. Nothing in the world like it that creates mutiple levels of leverage is amazing. Thank you King VP.

  23. I'm a beginner Forex Trader and have a $600 balance in my Forex Account. How much lot size I need to start with for to trade 27 pairs?

  24. This year I turn 70 years young. I spent 50 years working in banking – your video about the banks manipulating the currency markets is so true! I'm a newbie to Forex trading I began by taking some valuable beginners classes from a wonderful nonprofit dedicated to introducing Forex trading to women. I used a demo account for the classes and I recently opened my live account. That's when I had to step back and evaluate what I've learned to date and reviewing my personal tracking reports of my trades over the past 9 months I knew that I'm not where I'd like to be considering I want to start to trade live. I don't have the time or the money to make all of the mistakes. I'm so grateful I found your channel! Your teaching style and No Nonsense approach to trading resonates with me and the comments here from other traders confirms that what I'm hearing is GOLD. I'm following your recommendations and listened to podcast 3-13 (done), I'm half way through the Beginners Core Concepts Playlist and rewatching, and taking notes. Thank you for sharing your knowledge, skills and experience with those (me) that are striving to learn to be a consistently profitable trader.

  25. is it normal that i can't find some of those 28 pairs on tradingview? (i'm using oanda to trade btw)

  26. Since, USD pairs are hard for new traders, should we trade cross pairs along with major currencies only?

  27. thankx VP and keep it going man… u doing a wonderful job for us all,u may not know that but u are. God bless and continue to give u the grace and wisdom to continue to lead us

  28. Here is a checklist for you fellow VP Disciples

    EUR/GBP

    EUR/USD

    EUR/AUD

    EUR/NZD

    EUR/CAD

    EUR/CHF

    EUR/JPY

    GPB/USD

    GBP/AUD

    GBP/NZD

    GBP/CAD

    GBP/CHF

    GBP/JPY

    USD/CAD

    USD/NZD

    USD/CAD

    USD/CHF

    USD/JPY

    AUD/NZD

    AUD/CAD

    AUD/CHF

    AUD/JPY

    NZD/CAD

    NZD/CHF

    NZD/JPY

    CAD/CHF

    CAD/JPY

    CHF/JPY

  29. Actually I start with 30. After I cut to 27.
    I work with 27. And later y see some of them are the same. Moving the same way. So y start to eliminate my doubles.
    Finally y work with 18.
    All different. After 1 year study them.
    Ohhhhh !!!! The best spreads.

    Great channel. GOLD.
    Thank you very much for all this videos.

  30. just finished baby pips course and doing podcasts 3-13
    One question about trading 27 pairs, do you take into account currency correlations? or does your algorithm? or is this one of those things baby pips taught that you say forget about it?

  31. I have deleted ALL before this discovery. This is THE only advice I follow. My L I F E has enhanced for the better……BIG TIME! T h a n k you.

  32. Found one of your videos about a week ago. Life changing moment right there. Binged almost all and have already been implementing. Thank you so so much!!

    Also, your voice sounds so much like Ryan Renolds that I'd swear you are him incognito!

  33. Great information Thanks for sharing I live in Vegas as well, do you ride dirt or street bikes you sound sensible and fun.

  34. I did baby pips com years ago great training a must do for all that haven’t been through it old and young

  35. This comment is for "best time frame" video. There's no comments allowed on it so i'll post it here I guess. It was interesting when you said the 1D is the best because I have been working with machine learning the past few months and applying it to EUR/USD (after watching some of your videos I may switch to a less popular pair) anyway I tried training neural networks using 2000 various settings. One of the parameters was chart resolution, and most of the smaller candle sizes had really sketchy results. It would make you think it was learning then just drop to like 40% accuracy randomly. The 1-day size showed some crazy results though. Sometimes upwards of 70% accuracy. This was just predicting whether the price will be higher or lower in 24h (next candle) so it wasn't complex like money management etc. Just price direction prediction. Even for that the results were insane. So you're definitely not just making shit up. There have been a few different things you said which matched up with my findings over the past couple years.

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