Focusing on a particular market and particular trading vehicles, be they stocks, futures, options or forex is a good way to start to build trading expertise. But it is only half the picture, or perhaps better put, the picture is only half in focus. One must also limit oneself to the types of situations where trades are initiated. By this I mean, you don’t want to use every available system or indicator to signal trades even on only those markets you are following closely. As important as limiting your markets is limiting your trading signals. Find the systems that work well for your mental frame of mind and learn the ins and outs of those systems. Don’t worry about adding to the number of systems you trade or signals you watch for until you are thoroughly comfortable with what you are using now. For example, when I trade the Forex I restrict myself to six non-correlated currency pairs (a correlated currency pair would be a pair that moves in tandem most of the time like EUR/JPY and GBP/JPY, or inversely like EUR/USD and USD/CHF – its not wise to trade correlated pairs because it basically doubles your position in the same basic trade), and I use only support and resistance lines, trend trading and flags/pennants as my trading signal/indicators. There are literally hundreds of different trading indicators and systems available for every market. Some work, some don’t and some work better than others. But the important thing is to limit yourself to what works for you and master those before adding anything to your bag of tricks.
Good Trading!
