What to Trade

Successful traders eliminate distractions that could affect their ability to make a good trade. If you're watching too many currency pairs or trying to trade a currency pair you haven't tested your trading system on, you might take unnecessary losses. Listing what currencies you will trade in your trading plan is an effective tool to keep you focused and avoid distractions from other currency pairs throughout the trading day. Remember, you don't need to make a gazillion pips a month to earn a healthy return. Your trading plan should keep you focused on only the currencies that have back-tested well against your strategy and ignore anything else. Following a written plan is about maintaining discipline, and knowing what currencies you should focus on is a key component. If you can't find a trade following the system of a currency you specified, there is no trade to take and you should remain patiently sidelined.

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