Yeah you read it right… Master of One not None! Just a little different from the original figure of speech and I will tell you what I imply. I am talking about the art of trading all kinds of financial securities be it Stocks, Options, Forex, Cryptocurrencies etc. All of these financial instruments have their own unique dimensions that we need to know to trade them successfully or at least knowledgeably.
I have traded Forex, Stocks & more recently Cryptocurrencies with different trading styles, employing different trading strategies since they work for me. This is a broader picture however… what I am trying to reach at is going a little further at the micro level. I should point out that one thing that stays common with my style of trading is sticking to TA (Technical Analysis). Before I go any further I do want to clarify that I am not offering any kind of investment advice on any financial instrument – just sharing something that has worked for me.
So let’s talk about Forex since I have been trading that for the longest of all the financial instruments. Primarily I am an active Forex Day trader in all the USD Majors (7 pairs). Considering the volatility in Forex markets it presents me with ample opportunities during the course of a trading day to dip my feet into. Obviously one thing that makes it easier for me is that most of my trading decisions are based on technical factors. But there are days when you are confused about the general direction of different pairs, they are just choppy or there simply isn’t enough actionable trading opportunity in the other pairs is when I revert to my favorite trading pair in USD Majors USDCAD – since I know it inside out – from how it behaves technically & fundamentally to how macro & micro level economic factors affect its price movement to other geographic & political factors.
Now it could work for any other FX pair for you depending on where you live, the time you trade to the kind of trading strategy you adopt. I am not suggesting that you absolutely have to trade every single day or even that you absolutely need to have a favorite pair (in Forex) but mastering your trading skills could give you an edge & the confidence that you need to be a long time successful trader.
This could easily work for stocks as well where I have recently started trading a technical strategy called “Bread & Butter” whose discussion we can leave for a later date – sufficed to say it is a technical strategy employed to scalp strongly trending stocks. Even in stocks I have Tech sector as my favorite playground, where I trade most of the time employing this strategy. As for Cryptocurrencies, HODLing works for me for now in a few of the promising projects which show potential & promise – a decision I reached after a lot of research & due diligence and so should you if you intend to go that way. Short term trading in Cryptos is a little too uncomfortable for me. However, I would love to trade them on technical grounds after all the noise around them settles down at some point in the near future.
At the end of the day lots of traders are good at a bunch of things, yet others who are really good at a few things & then there are few who are masters at something specific. Are you one of them?