Which market to start off trading?

[tofu]

Hi everyone,

I just read through a thread in the forex board where it was mentioned not to start off trading the fx market as a beginner.

Why is that so? I understand the advantages in forex as opposed to stocks or futures as I was set on going through my 'learning plan', yet even the first steps thread timsk put up doesnt even propose the fx market to start with, after having thought about it again.
Which all made me think twice.

I have a few theories on it, hah.. but instead Id really appreciate more experienced traders input, is there something Im missin?

 

[Walkio]

The FX markets are extremely volatile and therefore riskier than other markets. I would, however, like to know what markets other traders think beginners should start in. I'm guessing Equities?

 

[soccerscott]

My advice is to open a cash account and trade equities at 1:1 leverage. This will prohibit you from shorting but there is enough inverse etf's to buy when you need to be short

 

[soccerscott]

Once you make over 100 trades calculate your win/loss percentage and reward/risk (money made vs money lost) ratio. Practice your position sizing and trade management as this is the real key to trading.

 

[soccerscott]

Once you can get those positive ratios, then you can trade products with leverage like equities with margin, futures or spot fx. Trading is the same across all those products and everything you did on the first 100 trades still apply (position sizing and risk management). Spot fx should be the last product to trade.

 

[soccerscott]

Look at this business as a long term proposition and it may take you 3 years until you are qualified to trade fx. Getting in with a good trading group will help to shorten this time period

 

[soccerscott]

One last thing. Don't jump into options since it is inherently different than directional trading like stocks, futures and fx. With options you need a much deeper understanding of option pricing, volatiliy and skew. Just learning the basics of options is a twelve month process.