why wouldnt one trading system work on all sections.

[fmjvertigo123]

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.

 

[fmjvertigo123]

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

 

[Rhody Trader]

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

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?

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

 

[fmjvertigo123]

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

 

[Jack o'Clubs]

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

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]

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.

 

[Citizen2007]

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

 

[robertbell1227]

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