I thought it would be easier to adjust to the forex market than it has been, transitioning from the stock market. I've been pretty successful with stocks, and knew it would take time and effort to learn forex, but honestly, it's been more difficult than I thought it would be. I thought I could at least be taking small consistant profits by now, but I'm definitely not there yet. I usually start with a good trade, but don't take profits when I should, or it doesn't run up as high as I expect, and it eventually comes down and stops me out. I'll get used to it but it's frustrating.
I'm on Interactive Brokers, minimum trade size is $25,000 which is fine with me. I've probably lost about $1000 total in my first month in forex, but I've made it back and then some in the stock market. I don't use big leverage, I'm not enough of a risk taker to do that, especially when I don't fully know how to read the market.
Pippy5000
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the best way to make money is by trading breakouts using stops.. A good breakout can go and go in the direction you want it to go in and you only need to use a small stop loss 30-40 pips.. I would advise against using limit orders as they can easily go against you (they start off going against you) .. You can get bigger profits but the risk is too high.
cpngtw
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What's the reason you move to forex?
I was in stock as well and to be honest, just moved to forex in less than 6 months
Took me a while to get used to. I use mainly TA and still learning about the fundamental aspects of it, not that I'm a fundamental guy!
I was in stock as well and to be honest, just moved to forex in less than 6 months
Took me a while to get used to. I use mainly TA and still learning about the fundamental aspects of it, not that I'm a fundamental guy!
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A few reasons for my interest in forex:
1) Going short is just as easy as going long. In the case of the stock market losing half of it's value (as it did last year) or major worldwide economic turmoil.
2) I quit my job to become a full time daytrader, and it's nice to be able to trade any time I want 24 hours a day.
3) I find it interesting to keep up with the worldwide news, and individual countries economies.
1) Going short is just as easy as going long. In the case of the stock market losing half of it's value (as it did last year) or major worldwide economic turmoil.
2) I quit my job to become a full time daytrader, and it's nice to be able to trade any time I want 24 hours a day.
3) I find it interesting to keep up with the worldwide news, and individual countries economies.
tripleogstar
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FX is a very complicated market and there are much more things that go on in the market that affects rates which traders at home are unaware of, e.g big risk reversal trades, hedging by corporates, swaps and other interest rate markets such as treasuries/gilts/etc. If you are to trade fundamentally, your market instinct needs to be top notch and even more importantly your ability to judge the response of economies to policies made by government and central banks needs to be very accurate.
Equities are not easier to trade BUT information is readily available to all participants in the market e.g volume data which I particularly find very useful and also company directors buying their own company shares, holdings by large fund managers etc
Those who were short equities during the crash have made a killing, e.g paulson & co (hedge fund).
Overall, FX is massively more difficult to trade than equities, it is faster, more complicated and the magnitude of moves are huge.
I still trade US equities during the normal session, but I would like to be more diverse and have more trade opportunities. Almost all of the forex trades I have made to this point have been scalping type trades, whereas I tend to be a position trader with the US Equity market. Good points made above, all of which I understand and am learning as I study.
