why wouldnt one trading system work on all sections.

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fmjvertigo123

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• Jan 31, 2011

• #1

what is the word you use when you are talking about things like forex, equities, cfd's. is it instruments? lol.

i've read that a system doesnt work on all things like forex, equities etc. could someone tell me why this is?

thanks guys.

 

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fmjvertigo123

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• Jan 31, 2011

• #2

for e.g. a system may make money trading forex. but then would be a losing system trading stocks.

 

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Rhody Trader

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• Jan 31, 2011

• #3

fmjvertigo123 said:

what is the word you use when you are talking about things like forex, equities, cfd's. is it instruments? lol.

Click to expand...

You can use "market" for forex, equities, commodities, etc. Things like individual stocks, CFDs, futures, options, etc. can be referred to as "instruments"

i've read that a system doesnt work on all things like forex, equities etc. could someone tell me why this is?

Click to expand...

Markets have different profiles and characteristics, particularly where volatility is concerned. They can create differences in system performance.

 

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fmjvertigo123

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• Jan 31, 2011

• #4

thanks rhody.
could you name the advantages of certain markets. for e.g. alot of people trade forex. why is this?

 

Jack o'Clubs

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• Jan 31, 2011

• #5

fmjvertigo123 said:

thanks rhody.
could you name the advantages of certain markets. for e.g. alot of people trade forex. why is this?

Click to expand...

Leverage. Newbies like the idea they can control millions of pounds of underlying risk for a few quid in a spreadbetting account - of course until they discover the downside of excessive leverage.

To be fair forex also trends relatively reliably and is very liquid, so narrow spreads and low trading costs.

 

Mr. Charts

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• Jan 31, 2011

• #6

Just because a horse and a greyhound both have four legs doesn't mean they aren't different animals.
Why should different instruments behave the same way?
I suspect you are thinking that technical analysis can be applied universally and asking why it doesn't work universally.
Why should it?
Understanding the individual market and the influences on it is far more important and is a pre-requisite of TA.
Even if TA "works" for you.

 

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Citizen2007

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• Jan 31, 2011

• #7

I would have thought it depends on the system, with the exception of equities.

 

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robertbell1227

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• Jan 31, 2011

• #8

Christmas 2008 is fast approaching and you might want to start making your shopping list now to avoid the stirring holiday rush and ultimately forefend being potentially labeled as a crappy gift giver. Since both you and I are fans of online gambling, particularly online poker - I am going to list down 8 great Christmas gift ideas to give away for our online poker addict friends