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.
It's a common challenge, especially early on. One approach is to cap your total open risk percentage across all trades, regardless of how many setups you see. This forces you to be selective and prevents overexposure.