Are any markets easier to trade than others?

Hello guys,

The background for the question is that I have heard it stated several times that the foreign exchange markets are among the most difficult markets to trade compared to lesser efficient and lesser liquid markets.

What are your opinions regarding this statement?

Let`s put aside the complications of the irregulated FX market compared to the centralized electronic markets at the exchanges. FX are traded as futures as well so that should not be a problem.

Also, let`s not spend time considering if the question relates to a retail trader or a hedge fund manager. Forget about leverage, etc.

Although the above is naturally relevant in an absolute sense, I think the statement about being easier to trade got more to do with being able to predict the price action or taking advantage of information advantages.

So, is there any truth in this statement?:whistling

I`m skeptic.

Johnny

JohnnyForex said:

The background for the question is that I have heard it stated several times that the foreign exchange markets are among the most difficult markets to trade compared to lesser efficient and lesser liquid markets.

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I doubt it. Since when does less liquidity lead to easier trading? FX offers the strongest trending market opportunities of any market.

JohnnyForex said:

Let`s put aside the complications of the irregulated FX market compared to the centralized electronic markets at the exchanges. FX are traded as futures as well so that should not be a problem.

Click to expand...

This makes no sense.

JohnnyForex said:

So, is there any truth in this statement?:whistling

I`m skeptic.

Click to expand...

So you sign up as ‘JohnnyForex' and then claim to be a skeptic? Hmmmmm….

the premise is; Are any markets easier to trade than others?

based on the idea that the number one rule is to protect your capital, then, you should ask; do some markets increase the opportunity to lose........the thread question needs to be about understanding price action(s) in the market you are looking at and understanding who else is (likely) to be in action at the same time.......i think it is quite fool-hardy to jump too many guns with these types of questions as they highlight a misunderstanding of the trade set-ups themselves......to say the spx does not trend as strongly as the audvusd is a sidetrack issue and can be argued to be the same certain time, certain price levels.......so what is the real point of the question.......its a black box question......so many threads pop up like this one across the globe and it underlines an extent of knowledge......i mean, not the knowledge itself, the answer, can be calculated as black and white as the question is black and white, but, the market place is not black and white......entering a stronger current just because its stronger doesnt make for a better swimmer.......the flow changes constantly.......

if the spx spikes up on sentiment news and the dx spikes up at the same time then what difference would there be in being in one market over the other? so many markets are inter-related......if the dax players rip the price north on the same news release are they playing the same game at the same time? dax the might go 60 points south while the euro might travel 40 pips south and niether hit res or support while both creating a new res or sup, but, does trading one over the other via perception of "ease" make any difference to your understanding of that action am talking about?

by the time you get around the route of finding out which one is "easier" over the others you'll probably have reasoned that you didnt need to know in the first place.......

2c

ii

all markets have "less" liquidity at certain phases/times of the day, week/quarter etc......define "less"

In my experience, day trading US stocks is consistently the easiest of anything I've ever traded.
Check out the link under my signature. Where else can you get moves like that (one of my trades this afternoon) - and in only nine minutes.
Richard

I think it depends on your style of trading as to what is easier. But yes I know that some markets are easier for me to trade with my style. I trade Forex mainly, and my system works on most of the majors, but for some reason I can't understand, it works superbly on AUS/USD. It may survive on US stock markets, but I doubt it would be anywhere near as profitable as Mr Charts system on those, and may even lose.

I think all trading is hard. You will watch certain markets and you will develop a system for those. It is easy once you know how, but a nightmare before you do. I don't believe there is a market that I couldn't develop a system for, if given enough time to watch it and see how it behaves. In the end I gravitated towards forex because of the liquidity (comfort in knowing I can get out easily) and movement. You might prefer something else. The on;ly way to find out is to watch and see what you have a feeling for.

TheBramble said:

I doubt it. Since when does less liquidity lead to easier trading? FX offers the strongest trending market opportunities of any market.

This makes no sense.

So you sign up as ‘JohnnyForex' and then claim to be a skeptic? Hmmmmm….

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What makes no sense?

A lesser liquid market is likely to be less efficient. At least in theory.

I`ve heard the statement about forex markets being the strongest trending markets many times, but I have not verified this myself yet. Have you?

I`m not sure if I understand correctly what you are implying that I`m skeptic of?

I got nothing against the forex markets, but I do see the advantages with a centralized exchange compared to a market where your broker pretty much decides what price to give you. Of course, the longer the time-frame of the trade the more irrelevant will this be, but for a day trader it would be very important.

Interesting thread. Let`s hear more about this.

And btw, I was not looking to find an easy market to trade.

Regards,

Johnny