Is FX more difficult to trade than...

[Nowler]

Hey folks,

What are your thoughts on FX being most difficult to trade than say... Commodities, bonds, or indices (feel free to add more to the conversation)?
Or what order would you put things in when it comes to difficulty? if you would put them in an order at all!

This is just one of my many ponderings (apparently "ponderings" is not a real word? but "selfie" is... pfft)
Is it just me that finds it harder? Is it because of my own cognitive setup? Maybe most people see it this way?

FX has a lot of factors!
Nothing is simple... everything is effected by other factors, but FX is a different beast.
Just because the EUR/USD goes up, doesn't mean the reason is down to a positive EUR factor... it could me down to a negative USD factor.

I believe I am right in saying that most newcomers to our game are drawn in by FX - right?
And if that's correct, and if FX is the hardest to get right, then what would the best place be for newcomers to start be?

I have been focusing on commodities in recent months and it's been interesting. A totally different take on things.

Any thoughts?

PS: I have just realised that I never mentioned Crypto - and I would currently find Crypto harder to trade then FX, lol

 

[tomorton]

Start by trading one forex pair - e.g. GBP/USD or USD/JPY or AUD/USD. Its not hard or risky, its pure TA.

 

[timsk]

. . . Any thoughts?. . .

Hi Nowler,
I've lost count of the number of newbies (not you) who come on here thinking that trading the financial markets means trading forex. They're hardly aware of - let alone consider - other markets and instruments. In itself, that's not the end of the world, but many of them think that forex is the 'best' one trade - without really considering what 'best' means. It's certainly not the easiest, at least not by any objective benchmark. But, by the same token, nor is any other market or instrument. If any one was easier to trade than another, i.e. more traders made more money trading forex as opposed to say, indices or commodities - then logic dictates that everyone who trade forex - me included. I've always steered clear of it for the simple reason that when I'm on holiday in mainland Europe and and Mrs. timsk asks me what the cost of the meal we've just had is in £GBP - I haven't got a clue. I figure that if I struggle with a calculation that simple then I've no business trading forex.

So, what does 'best' mean and how does one decide which market and instrument(s) to trade? The answer is to work back from all the known factors. Once one's decided the type of trader to be (day, swing or position), it's a case of balancing practical considerations with the markets and instruments that provide the best opportunities. For example, I used to trade U.S. equities and, after many years, abandoned them because I was never really comfortable tracking numerous instruments simultaneously. Multiple charts in different time frames requires substantial screen real estate. Also, the U.S. open is 2.30 pm U.K. time so, if one has a 9 - 5 job, this may not be the market to trade. Now, I prefer equity indices which I can monitor quite comfortably on my little 13" laptop. The downside is that when it's a choppy day with no opportunities - I'm stuck. Whereas, the U.S. equities trader will always be able to find something that's moving. At the end of the day, it's horses for courses.
Tim.

 

[Henow1969]

Forex is very easy to trade if you have good skills and knowldge and will to learn it more...

 

[Felix_trade]

Forex is very easy to trade if you have good skills and knowldge and will to learn it more...

Yes right. It depends upon a trader's mindset.

 

[Henow1969]

Yes right. It depends upon a trader's mindset.

Yes, I think trade's mindset should be clear with good plan to trade.

 

[Felix_trade]

Yes, I think trade's mindset should be clear with good plan to trade.

Absolutely.

 

[Joseph99]

It's not difficult but you need good knowledge.

 

[donald55]

I think its the most interesting out of all but definitely you need to put in effort to learn it.

 

[Trader H.C.]

Forex is just like any other asset classes when given the right strategy, it's profitable to trade. It's all about whether you have an edge with your trading strategy with that specific asset.

Check out my channel for more related videos, consider subscribing if you find it useful:
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