Why forex? | Forex Factory

Options

Permalinks
Print Thread

Similar Threads

Why Binary Forex Options are better than Spot Forex 734 replies

Why do indicators not work/work? Why is Forex not truly random? 129 replies

Why 95% of Forex traders lose in Forex? 18 replies

Why is Sentix Investor Confidence influentional on EURUSD! Why ??? 0 replies

Why oh Why .... 19 replies

Why forex?

  • #1
  • First Post: Dec 31, 2006 10:28pm Dec 31, 2006 10:28pm
Hi everybody,
i have some question and hopefully you can answer them :

1. Why is trading forex better than trading stocks or futures?

2. In the moment iam learning very much about candlesticks and that they are very based on gaps and sudden leaps.
Unfortunatelly in forex gaps and similiars rarely happen in opposition to stocks or futures. Why?

3. Is there any platform where i can analyse stocks and futures? It should contain the same features as metatrader. Or can i add stocks and futures to metatrader to analyse them?

4. What are futures exactly?

5. Are there some brokers where i can trade stocks and futures? What are the benefits of forex brokers?

6. What are CFDs?

I would be very glad about some answers.
Thank you in advance
Good night
-mike
I'm getting there ... slowly
  • #2
  • Dec 31, 2006 11:38pm Dec 31, 2006 11:38pm
Quoting miketoll
1. Why is trading forex better than trading stocks or futures?
Nothing,
it can be more difficult due to high volatility and news coming every week. But why, most people like forex, because you can open a account with less than 1000$(affordable to everyone). And many think they will be millionnaire doing EA or trading special system.
Learning its the easy part( in 1 week-end you know almost everything)...
Try to make money inside the first 6 month without loosing your first account!!!!
Quoting miketoll
2. In the moment iam learning very much about candlesticks and that they are very based on gaps and sudden leaps.
Unfortunatelly in forex gaps and similiars rarely happen in opposition to stocks or futures. Why?
"candlesticks and that they are very based on gaps and sudden leaps" is totaly false. Its only representation of price movement(Patern).

Sometime in Stocks you will have, what i call pause: Its when they stop trading the Stock because news annoncements or company modification,etc.. It may also be other things.
In forex, It never stop except on week-end(Or holidays). Most, if not all, of the time the gaps will hapen on Sunday(Open time) or broker problem.
By the way in forex, the concept is not like NASDAQ(Where they manage Bid and ask in a central place)(In forex is the brokers that do this:Well suppose to be the Bank ;-) )

Quoting miketoll
3. Is there any platform where i can analyse stocks and futures? It should contain the same features as metatrader. Or can i add stocks and futures to metatrader to analyse them?
Yes, few of them offer futures also.
You cannot add nothing to MT. You must open a account with a broker to be able to trade with them and have Future or Forex if they offer them(Or use a demo account)..
Sorry for my bad english translation
  • #3
  • Dec 31, 2006 11:58pm Dec 31, 2006 11:58pm
Quoting miketoll

3. Is there any platform where i can analyse stocks and futures? It should contain the same features as metatrader. Or can i add stocks and futures to metatrader to analyse them?

4. What are futures exactly?

5. Are there some brokers where i can trade stocks and futures? What are the benefits of forex brokers?

6. What are CFDs?
Its only a example : NorthFinance is one of them <- For education purpose, i know nothing about them i use InterbankFX.
-- Stocks
-- What is CFD

Brokers are, for now, the only way to trade in forex. Some dilema are about if they have dealing desk or not... But you should wary more about integrety of the compagny first.
Sorry for my bad english translation
  • #4
  • Jan 1, 2007 12:13am Jan 1, 2007 12:13am
I am fairly sure that MB Trading trades both stocks and forex. I used them for forex only so I have absolutely no knowledge about the other end of their business.

I also believe that they have been trading stocks longer than they have been offering forex trading.

I am neither going to recommend them nor warn you away from them. My experiences with them were basically neutral. The one downside they definitely have is that they are small. On the plus side, they are an ECN broker and while you pay a commission on forex trades, often the spread is very small compared to other brokers.
  • #5
  • Jan 1, 2007 12:15am Jan 1, 2007 12:15am
there are not much gaps in forex because our market is open 24hrs and gaps only occur on some broker's data feed because they open later (on sundays) than some other broker and the price had already moved.

I think forex is better than stock because it allow more people to get into trading with smaller margin. In stock, you would need large sum of money to make any kind of profit because of the commission cost. You can't buy 100 share of something and hope to gain enough money to cover your commission cost and then some profit.
  • #6
  • Jan 1, 2007 12:34am Jan 1, 2007 12:34am
Quoting nitman
I think forex is better than stock because it allow more people to get into trading with smaller margin.
Thats why there are so many fish...
Few people survive in forex and do this as a living or make enough money to grow there account.
This is not a easy market.
Sorry for my bad english translation
  • #7
  • Jan 1, 2007 12:44am Jan 1, 2007 12:44am
By the way, since you cannot Short the stocks(Well accept if you open a second account for shorting), when you pick a trend in stock, it as more power than Forex...

So trading Stocks for a good trader is less risky than forex...
Trend in Stocks can last for year and you have no negative interest on you trade...
And some compagny offer flat rate like 9.99$ for minimum share.

I love Forex, but they invent forex market to catch fish... :-)
Sorry for my bad english translation
  • #8
  • Jan 1, 2007 9:44am Jan 1, 2007 9:44am
Zeuzere, dont tell me that candlesticks are not based on gaps. Maybe the expression "based on gaps" is wrong, BUT where in the forex market do you find patterns like the belt-hold line? You cant find them, because there are no leaps. Also the engulfing pattern and the piercing pattern is hard to find..
In addition nearly every pattern is increased in its meaning by having greater gaps between the real bodys of the candle.
I think the last reason is a big plus for futures and stocks, because you can differ there between powerful patterns and weak patterns (by measuring the ditance between the real bodys of two candles).
So, do you know some more brokers offering futures and stocks to trade?
-mike
I'm getting there ... slowly
  • #9
  • Jan 1, 2007 6:23pm Jan 1, 2007 6:23pm
Anyway, i dont want to start a fight ;-)
But i stick :-) to what i say ( Patern ) ,
Yes they are formation where gaps is part of the formation but not all of them. Also, maybe we just dont have the same definition of gaps :-)

Quoting miketoll
Zeuzere, dont tell me that candlesticks are not based on gaps. Maybe the expression "based on gaps" is wrong
Sorry for my bad english translation
  • #10
  • Jan 1, 2007 7:07pm Jan 1, 2007 7:07pm
Quoting miketoll
Zeuzere, dont tell me that candlesticks are not based on gaps. Maybe the expression "based on gaps" is wrong, BUT where in the forex market do you find patterns like the belt-hold line? You cant find them, because there are no leaps. Also the engulfing pattern and the piercing pattern is hard to find..
In addition nearly every pattern is increased in its meaning by having greater gaps between the real bodys of the candle.
I think the last reason is a big plus for futures and stocks, because you can differ there between powerful patterns and weak patterns (by measuring the ditance between the real bodys of two candles).
So, do you know some more brokers offering futures and stocks to trade?
-mike

mike,
Are you thinking of quitting forex trade? I am wondering why someone like you with over 130 posts would be asking such basic questions.

Anyway, in my experience trading forex based candlestick pattern is interesting but not always reliable. C-sticks behave differently in forex because it is so volatile.
What helps me is to watch the live formation of wicks and tails especially on the H1 or H4 charts. Historical data of C-sticks won't show you what you must see forming before your very eyes in wicks and tails.
Powerful stuff.

good luck.
  • #11
  • Last Post: Jan 1, 2007 9:07pm Jan 1, 2007 9:07pm
Quoting Zeuzere
Anyway, i dont want to start a fight ;-)
But i stick :-) to what i say ( Patern ) ,
Yes they are formation where gaps is part of the formation but not all of them. Also, maybe we just dont have the same definition of gaps :-)
I have studied candlesticks extensively over the past 4-5 months. My answer to your gap question is "Don't worry about it!" You can't and don't need to spot and trade every single pattern possible. In fact, if you get 3-4 patterns down, trade the daily's, keep aware of the news, and get your MM right, you can do it, easy.

andersenws
"Youth is the trustee of prosperity." - Benjamin Disraeli
0 traders viewing now