Hi, in this short video I show you why it’s very important to pay close attention to correlation when trading.
Many pairs move in the same (or opposite) direction, predictably, at the same time. For example, 90% of the time when the Euro/$ is going up the Chf is going down and vice versa.
That means if you take both trades at the same time you are doubling your risk. If one loses, they both do.
Last week in the live training session I showed you a lot of very good setups, especially on Cad & Yen crosses, so which to take and why?
Some of the things I look for (the main one is which has the potential to make the most profit versus the risk) (risk-reward). Then look at the calendar and see what news is due ot that could ruin one of the choices.
If you do take two at once, then halve the risk on both.
Check out the video:
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