If you are just learning to trade on Forex, you may be enticed to trade with several markets at once. While it is wise to put your eggs in different baskets, it’s even wiser to tend to the seed you first planted and learn to manage it before adding another egg to another basket. Even when you are starting to expand your portfolio, it is still advisable to have a favorite market where you spend most time investing in.

When you learn Forex trading, you often realize that you can’t be a Jack of all trades in this industry. Instead, you have to be a specialist of a sort so you can bring in the most income potential. Think about surgeons, pro athletes, and lawyers. No good lawyer will say they specialize in all fields of law, instead, they will pick criminal law or corporate law to focus on and master. This doesn’t mean that you are limited to one market. When you train to become a Forex trader, you should focus on a small number of markets first and choose one to familiarize with the most. As a Forex trader, you should know the inner workings of this market so you can better trade in it.

Just as it is important that plumbers work on their expertise while electricians master theirs, so it is important when you train to become a Forex trader, that you analyze and work on a favorite market rather than trying to analyze and trade in 20 different markets, successfully at that.

Experts believe in this technique as it helps avoid over-analyzing and over-trading. Majority of the traders who don’t stay in Forex trading for too long is because they are consumed by 20 markets and more rather than focused on a few markets. When you’re learning to trade on Forex, it helps to be more clear-headed and focused. When you’re not confused and overwhelmed trying to analyze several trading markets, your risk of losing money and entering a bad trade would be minimized.

Your favorite market will become your foundation, which will help you when adding other major markets later on. When you are just starting to learn Forex trading, it is highly recommended that you get to know one market, a favorite Forex pair or a favorite stock index. When you do this, you won’t have to worry about over-leveraging because you only trade in one or two pairs at the same time. This will not only help you contain the risk but will also reduce your temptation to overtrade and lose your money.

If you have a friend that you want to train to become a Forex trader, it is best that you advise them to focus on one Forex market for at least a couple of months. That market should be something they are comfortable with and they enjoy learning about. In the end, this is just one of the techniques in Forex trading. If you want to become successful trading in any market, you must learn how to read a price chart as well as the price action patterns. Get familiar with your chosen market’s price action and master that market before you look into adding more.