Focus or diversify?

T

tortoise

I've heard it both ways. Better to master one trading vehicle. Better to spread your bets. Personally, I'm inclined to know one financial instrument inside-and-out before playing the multiple signals game. My question is this -- does anyone build a career around one instrument. Seems like the ES offers enough to absorb one for many years (assuming his/her account stays afloat):D . Thoughts?
 
I can see both sides of the argument. Personally, I prefer to focus on a limited amount of markets and know them inside and out.

It may also depend on your type of trading. If swing trading you can probably widen out the amount of markets.
 
Quote from tortoise:

I've heard it both ways. Better to master one trading vehicle. Better to spread your bets. Personally, I'm inclined to know one financial instrument inside-and-out before playing the multiple signals game. My question is this -- does anyone build a career around one instrument. Seems like the ES offers enough to absorb one for many years (assuming his/her account stays afloat):D . Thoughts?
More...

You can still trade only one market while monitoring just as much other key markets that have impact on your market that you actually place trades.

Therefore, YES, I know several traders that trade for a living (profitably) via trading only one trading instrument but they are just as tuned into other key markets.

Advantages of the above will be that there will be a day your either unable to trade your trading instrument (data or exchange problems) and you can still trade that day in one of the other key markets that you monitor closely.

There's also a situation where you may need to hedge for whatever reason.

By the way, every profitable ES trader (exclusively trades ES) I've met are also prepared to trade other key markets that's involved in their intermarket analysis with ES.

Mark
 
Quote from tortoise:

I've heard it both ways. Better to master one trading vehicle. Better to spread your bets. Personally, I'm inclined to know one financial instrument inside-and-out before playing the multiple signals game.

My question is this -- does anyone build a career around one instrument. Seems like the ES offers enough to absorb one for many years (assuming his/her account stays afloat):D . Thoughts?
More...
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TorToise;
Good nickname:cool:

Yes focus on a few & even focusing on ES,still leaves plenty of time to check SPY,QQQQ.

Pretty sure it ''can be done with one'';
wouldnt want to be that non diversified, myself.

As far as diversification, yes also;
in time,
in location.....:cool:

murray t turtle
 
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