Question about managing multiple open trades in Forex
Hey everyone,
I'm still relatively new to the forex space, focusing mostly on $EURUSD and $GBPUSD, trying to get my strategies down. I've been paper trading for a few months and recently started with a small live account. One thing I'm grappling with is managing multiple open positions. When I'm in one trade, say a short on $EURUSD, and then I see a seemingly good setup for a long on $GBPUSD, I feel a bit lost on how to properly size the second trade, or if I should even take it. My initial thought is just to divide my typical risk percentage across both, but then I worry about overexposure if both move against me, or if they're indirectly correlated more than I realize.
How do more experienced traders here approach managing multiple open positions simultaneously? Do you have a hard cap on total open risk? Do you prefer to close one trade before opening another, or is it common practice to juggle a few at once? Any insights on this would be really helpful.