Forex vs stock day/swing trading: differences?

[KenCalhoun]

Hi - I wanted to find out what those of you who have made the transition from equity to fx trading have found to be the biggest differences?

examples: no gaps, no volume data, 24-hour market, technical signals: similarities/differences?

I'm asking, because I want to see what your biggest differences are ... I think the whole 24 hour trading, and having multiple market opens (euro/asia etc) to deal with are a couple.. others?

thx,

ken

 

[options]

Ken.

The biggest difference is that fx markets trend so much better and longer than stocks, which are more open to manipulation then fx.
I'm not talking about the usual mm tactics here but manipulation from bigger money groups etc.

The 24 hour trading? Well in truth, as with any market, there are only a few times during the day when you should be trading. You don't often get trading opportunities at 3 o'clock in the morning gmt time. Although oportune moments do pop up, liquidity will be small. Much better to trade when the main players wake up; ie Gb open and usa open.

 

[KenCalhoun]

Thanks.. seems also that the relative lack of (dangerous) gaps would make fx ideal for swing trading, reducing that particular risk... though the lack of volume data seems like a big potential handicap.. (as I use tape reading extensively for intraday entries/exits)... and the fx charts look a lot more choppy, so likely the stochastics/rsi/candle reversal patterns are more useful for intraday, than volume-breakout type stock strategies...

ken