Monday, February 29, 2016

Is it true that FX, COMMODITIES and INDEX are risky products?

Recently, I spent sometime at a bookstore pondering through the books on the Financial Investment section. Today, the HOT topic is FOREX. The popular book title is HOW TO TRADE FOREX. Well, there are no BIG major difference trading/investing/speculating FOREX, COMMODITIES, INDEX and  STOCKS.
The key difference is the common mental traits among stock players is the LONG mentality mindset. While it is more apt to say FOREX and COMMODITIES traders are more flexible to take LONG and SHORT positions.

In terms of chart analysis, I use the same approach for all the 3 products mentioned above. Do not be mislead to believe that they are all different. The major different is LEVERAGING that you get from Forex and Commodities. The other key difference is that you can almost trade 24h -Monday to Friday for non-stock products with the popular MT4 platform.

In stocks, one has to be LONG bias. What happen when you do not see a good LOW RISK HIGH RETURN opportunity entry for stocks as the stocks continue decline? Are you going to sit and wait for 6 months doing nothing except waiting? 

Is it true that FX, COMMODITIES and INDEX are risky products? Well, those who do not understand and never learn (taking the initiative and effort) will think they are dangerous. IF they are dangerous, why am I still trading them? Even people who have not traded any product can tell you buying stocks are dangerous, speculation!!! I have met many people telling me all these financial products are dangerous more so with FX, COMMODITIES and INDEX.

It all lies with who you are talking this sort of conversation with. Those who condemn these products either do not understand or have never fully comprehend how to exploit this products positively.

As for me, I do not think I will focus on stocks until the time has come.


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