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Thanks Paul. I just would like to add a list of pros and cons of Forex and YM. Ofcourse the Pros and Cons may not apply to everyone, but for me it seems that:
1. Forex is 24hrs, live. That means that there is no premarket and postmarket restrictions.
2. Forex has more volume.
3. Less volatile.
4. And is very flexible as far as how much money you want to risk. Can be highly leveraged, or low leverage.
5. I'm not sure how reliable the Forex trading is, but I have not heard about Forex servers going down.
6. I have not heard about Forex trading being closed because it was going down too much in value.
Now, I would be interested to know the disadvatages of Forex. One disadvantage I know of is that it is not very regulated. But if regulated means closing down trading because it is going too far in one direction then that may not be good however. |
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Abe,
Allow me to play devil's advocate:
1) The e-mini's are virtually 24 hours as well.
2) That volume number is an interesting one. I wonder how much volume a small trader needs in order to be successful?
3) We could find charts showing less/more volatility at certain times. Personally, I thrive on volatility so that works for me but I can see what you are saying here.
4) Same with the e-mini's. YOU control the leverage being employed.
5) You may not hear about servers going down b/c there is no centralized place to trade forex! You are trading against the broker! It's all on the broker's servers!
6) I would agree here but I've also read how certain types of 'bucket shops' will go stop hunting and since there is no centralized price center, there's not much you can do if Company A shows price there even though Company B does not...
And as you said, there is next to zero regulation here. That alone is enough for me to stay away. When there is no regulation, that only helps the BIG boys. Lack of regulation only hurts the small, retail trader.
I'll be interested to see how your forex trading goes Abe but I would guess if you go through a 'stop hunting' time period or the spread being outrageous during econ news, you may reconsider. And make sure you do your homework on what broker to go through!
Good luck Abe.