The Authority’ on Price Action Trading. In 2016, Nial won the Million Dollar Trader Competition. I get a lot people asking me what markets I trade. The short answer is that I follow a handful of highly-liquid, major markets that provide me with the best forex pairs correlation chart action trading opportunities.
A big problem that inhibits many traders’ success is that they are focusing on too many markets in addition to all the other trading variables they are overly-focused on. From news events to indicators to having 50 different charts open on your trading platform, there’s a never-ending supply of data and variables that a trader can get caught up in trying to digest everyday. It really is enough to drive you mad if you allow it to. So what’s the solution to avoiding this data-driven madness? The solution is to scale-back the amount of data you’re trying to make sense of each day as you analyze the markets. Putting the odds in your favor is not done by trying to keep track of 30 or 50 different markets and frantically scouring them all for signals each day. Note, if you are new to Forex trading it will help if you first go through my article that outlines what the major forex currency pairs are compared to the minors and exotics.
Why I only trade a handful of markets Just because you can do something doesn’t mean you should. You can go try and wrestle a Saltwater crocodile, but that doesn’t mean you should. Despite this seemingly obvious fact, many traders confuse and frustrate themselves everyday by trying to track and trade too many markets. Most traders have access to hundreds of markets from around the world.
I also have access to hundreds of markets, yet I wake up each day with a very small number of charts open on my trading platform. You are not going to become a successful trader if you don’t learn to specialize in and master one trading strategy. It’s also going to be nearly impossible for you to find consistent trading success if you don’t become a specialist in a small handful of your favorite markets. Having less markets reduces the chance that you’ll be in the market too much.
Limiting your choices reduces the risk of over-trading, and over-trading is probably the number one reason most traders fail to make money over the long-run. Traders tend to enter trades far too often just because they want to be in the market, not because there’s a high quality price action signal present. So, what are the markets I trade? If you follow my members’ commentary it’s no secret that you’re only going to see me talk about a maximum of about 10 to 12 different markets over the period of any given month. Not only are these the markets that I discuss the most in my members’ commentary each day, they are also the ones I personally trade and analyze the most, in fact, I rarely even look at any other markets besides these 12. How many markets are you trying to trade?
In my opinion, if it’s any more than 12, it’s way too many. This article is written using images from the trading platform that we use, if you don’t yet have that platform you can download it here. Market correlation and why I really dislike certain markets I feel it’s necessary to quickly go over market correlations as well as explain why I don’t trade certain markets as I know some of you will have questions about these things. CAD, primarily because from my experience they both tend to behave in a choppy and erratic fashion. These markets are very erratic and have very wide spreads and low liquidity, all bad things for a trader.
It’s time to take action Now that you know what my favorite markets are and why, you should reduce the number of markets you’re trading, it’s time to take action. You should see a screen appear with some or all of the markets offered. This is where you can pick and choose which currency pairs you follow. You can save multiple watch lists if you want. Hit F10 and a pop-up price menu of your currently opened watch list will appear.