When you read the article, Staying Up to Date with Market Conditions, you’ll learn that the market is constantly changing, sometimes for the good and other times for the bad. Since we can never fully predict the market, it’s important to have a well-diversified portfolio. By doing this, you’re not putting all of your eggs in one basket, but instead minimizing your losses. After all, even the best traders will experience losses – it’s all part of the trading process.
As you can see, the goal is to remove similarities between different pairs within a portfolio. As a result, if one of the currency pairs is unsuccessful, it doesn’t necessarily mean that they all are.