I think it might be easier to trade Fx and Commodities rather than FX and Stocks - although you are essentially playing the same theme! - i am ok at tading stocks,Indices etc... as for FX I think i am easily the most consistent trader on T2W - I always lose money.. it's uncanny..!
Trading Two Different Markets
- Thread starter Prawnsandwich
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pennystocks
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I think it might be easier to trade Fx and Commodities rather than FX and Stocks market. stocks will never double, triple or quadruple in value like a penny stock can. They are tapped out.
DionysusToast
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Regarding day trading...
I know people that day trade stocks and that can trade pretty much any stock. In my experience, if you trade events (e.g. news, earnings), then you are with a crowd of people that also trade those events and the stocks tend to exhibit common behaviours at those times.
I know a very succesful futures trader that can trade many different markets but he's been doing it over a decade and has learnt each one individually. His recommendation for people new to Forex is to stick with one market and learn how it behaves before moving to the next.
Seems to me that you can trade things that share the same behaviours, as a newbie, you probably won't know which markets share traits and so it seems sensible to stick to one market until profitable there. Downsides of course are there may not be trades to take.
I know people that day trade stocks and that can trade pretty much any stock. In my experience, if you trade events (e.g. news, earnings), then you are with a crowd of people that also trade those events and the stocks tend to exhibit common behaviours at those times.
I know a very succesful futures trader that can trade many different markets but he's been doing it over a decade and has learnt each one individually. His recommendation for people new to Forex is to stick with one market and learn how it behaves before moving to the next.
Seems to me that you can trade things that share the same behaviours, as a newbie, you probably won't know which markets share traits and so it seems sensible to stick to one market until profitable there. Downsides of course are there may not be trades to take.
Prawnsandwich
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OK well, thats not really addressing the point of the thread....
The point of the thread is not whether you can trade different markets, which obviously you can of course, but rather if trading very different markets can negatively impact on your performance on one or more of those markets...
Obviously it takes time to learn any market, and you should stick with one until proficient. However, there may be merit in trying an alternative market if its not working out on a particular market...provided you have given it adequate time, and have taken a systematic approach...
I would consider trading stocks and in particular trading momentum plays, as one market....
In terms of forex I'm not sure that newbies should only stick to one market ie one currency pair....although there may be benefits to doing so :
If a particular set up is being traded such as a trend following approach based on daily / weekly timeframes with entry and stop positioning based on price action on lower times frames, then why limit your search to just one pair if you can find good opportunities in a wide number of pairs.....
wackypete2
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I disagree with your forex approach. I absolutely think that a new forex trader should stick to just one currency pair at first. Of course there's correlation but each pair does have it's own erratic behaviors and volatility is very different across pairs. Forex is a very different beast. There's no real DOM, no actual volume to work with, and sovereign countries are all manipulating their own currency to suit their needs. Certainly there are plenty of opportunities across a wide range of pairs and you can move on to them as you progress but I highly recommend a new trader study 1 pair first.
As I said earlier trying to trade stocks and forex in the same day with both platforms up is stress you don't need. Even switching back and forth every day or other day will have that deteriorating effect you are talking about.
A suggestion that worked for me was to trade whichever market you choose for 2-3 days at a time. It gives you time to get your mind set on your market without thinking about if you are missing opportunities in the other market.
Peter
HowardCohodas
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I met a girl earlier this week with multiple personality disorder. I wonder if we have just discovered an advantage to what is generally considered problematic.
Prawnsandwich
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Thats fair enough Peter, we all have different approaches, and you certainly have more Forex experience than me..
I'm not familiar with how you trade Forex, but understand that you trade price action off lower TFs, so perhaps Forex pairs do behave differently at these levels....and a trader needs to build significant screen time getting familiar with the market to trade like this effectively...
That said, on the higher time frames, weeklies and dailies, a strong trend is a strong trend...whatever the pair, and if you can get a good entry in said trend, with reasonably tight stop placement, good RR taking account of S/ R / Pivots.....then surely this type of set-up can be found whatever the pair..
Thats a good suggestion for devoting a few days to one particular market...at the moment I'm doing Forex in the am, then switching to stocks when US markets open an 2.30pm local time...
wackypete2
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I tried that too. I'm on New York time so I was forexing until 9:am, 1/2 hour break then traded stocks when NYSE opened. Honestly, I just couldn't make it work that way. I couldn't focus enough on each market to make good decisions.
You're right about the higher time frames so nevermind what I said!
Peter
FX Bandit
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The problem with these discussions is that everyone's approach is personal and different. To me, a chart is a chart, but my style is to be extremely selective.
Overall, PA is universal - it has to be, it's just a picture of price behaviour. That said, after a while in front of the screen you do get to see a certain personality in many markets.
ES and YM, for example, feel very different. Then again, the obvious set ups work equally well on either.
And now I'm going round in circles.
Overall, PA is universal - it has to be, it's just a picture of price behaviour. That said, after a while in front of the screen you do get to see a certain personality in many markets.
ES and YM, for example, feel very different. Then again, the obvious set ups work equally well on either.
And now I'm going round in circles.
davidriched
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The above thought is smart and doesn’t require any further addition. It’s perfect thought from my side. I appreciate the concern which is been rose. The things need to be sorted out because it is about the individual but it can be with everyone. The initiative taken for the concern is very serious and need an attention of every one. This is the concern which exists in the society and needs to be eliminated from the society as soon as possible.There is nothing called a free lunch is this world. If anything needed to be resolved then initiated need a support to be sorted out.
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Best Savings
davidriched
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The above thought is smart and doesn’t require any further addition. It’s perfect thought from my side. I appreciate the concern which is been rose. The things need to be sorted out because it is about the individual but it can be with everyone. The initiative taken for the concern is very serious and need an attention of every one. This is the concern which exists in the society and needs to be eliminated from the society as soon as possible.There is nothing called a free lunch is this world. If anything needed to be resolved then initiated need a support to be sorted out.
===============================================
Best Savings
===============================================
Best Savings
davidriched
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The above thought is smart and doesn’t require any further addition. It’s perfect thought from my side. I appreciate the concern which is been rose. The things need to be sorted out because it is about the individual but it can be with everyone. The initiative taken for the concern is very serious and need an attention of every one. This is the concern which exists in the society and needs to be eliminated from the society as soon as possible.There is nothing called a free lunch is this world. If anything needed to be resolved then initiated need a support to be sorted out.
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<a href="http://www.banksavingsinterestrates.com" rel="dofollow">Best Savings</a>
davidriched
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Comment
The above thought is smart and doesn’t require any further addition. It’s perfect thought from my side. I appreciate the concern which is been rose. The things need to be sorted out because it is about the individual but it can be with everyone. The initiative taken for the concern is very serious and need an attention of every one. This is the concern which exists in the society and needs to be eliminated from the society as soon as possible.There is nothing called a free lunch is this world. If anything needed to be resolved then initiated need a support to be sorted out.
===============================================
Best Savings
The above thought is smart and doesn’t require any further addition. It’s perfect thought from my side. I appreciate the concern which is been rose. The things need to be sorted out because it is about the individual but it can be with everyone. The initiative taken for the concern is very serious and need an attention of every one. This is the concern which exists in the society and needs to be eliminated from the society as soon as possible.There is nothing called a free lunch is this world. If anything needed to be resolved then initiated need a support to be sorted out.
===============================================
Best Savings
davidriched
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I appreciate the concern which is been rose. The things need to be sorted out because it is about the individual but it can be with everyone. The initiative taken for the concern is very serious and need an attention of every one. This is the concern which exists in the society and needs to be eliminated from the society as soon as possible. There is nothing called a free lunch is this world. If anything needed to be resolved then initiated need a support to be sorted out.
====================================
Best Savings
====================================
Best Savings
HowardCohodas
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