Knowng when to diversify to other instrument
When one market is having accumulation/distribution phase, it is better to leave its chart and look outside for opportunities.
Eg EURUSD is currently having accumulation/distribution phase, but NZDJPY is having a strong bearish trend.
See my posts here:
EURUSD: (A/D phase) https://www.forexfactory.com/showthr...6#post10764716
NZDJPY: (Bearish) https://www.forexfactory.com/showthr...3#post10764683
My observation is that we tend to stick to our safe zone, and ignore all other markets that can be more profitable.
It is normal human social behaviour.
I see a couple of traders keep fighting the A/D phase for about 3 days on EURUSD, losing what they have gained in the trend phase.
They could have gone to other instrument to trade.
One may use a Currency Meter to identify the strong currency to trade first.
However do note on my post here: https://www.forexfactory.com/showthr...7#post10765757 on its key disadvantage.
EURUSD is more widely traded because of its low spread, but it has more news that cause the price fluctuations.
NZDJPY is less traded because of its higher spread, but it is more trendy.
Someone told me, EURJPY has a better profitability as compared to EURUSD. Think about it for a second.
I believe a trader may get higher overall trading performance trading a currency that has more trend phases than A/D phases.
If the chart has more support/resistances on the same chart, it may be harder to trade.
When one market is having accumulation/distribution phase, it is better to leave its chart and look outside for opportunities.
Eg EURUSD is currently having accumulation/distribution phase, but NZDJPY is having a strong bearish trend.
See my posts here:
EURUSD: (A/D phase) https://www.forexfactory.com/showthr...6#post10764716
NZDJPY: (Bearish) https://www.forexfactory.com/showthr...3#post10764683
My observation is that we tend to stick to our safe zone, and ignore all other markets that can be more profitable.
It is normal human social behaviour.
I see a couple of traders keep fighting the A/D phase for about 3 days on EURUSD, losing what they have gained in the trend phase.
They could have gone to other instrument to trade.
One may use a Currency Meter to identify the strong currency to trade first.
However do note on my post here: https://www.forexfactory.com/showthr...7#post10765757 on its key disadvantage.
EURUSD is more widely traded because of its low spread, but it has more news that cause the price fluctuations.
NZDJPY is less traded because of its higher spread, but it is more trendy.
Someone told me, EURJPY has a better profitability as compared to EURUSD. Think about it for a second.
I believe a trader may get higher overall trading performance trading a currency that has more trend phases than A/D phases.
If the chart has more support/resistances on the same chart, it may be harder to trade.