Edition 6: Help! Which market should I trade!?
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So what are the actual differences? It's true, the markets do vary slightly, but not as much as you'd imagine. If you're a fundamental trader who focuses solely on trading Oil, keeping up to date with everything being discussed in OPEC meetings, the production of oil out of Saudi Arabia, Canada, Russia and so on, then that's a different kettle. I personally have very little interest in following news headlines, predicting which is the next popular bro-coin to pop, or reading company earning reports. Which is why I am a technical trader focusing on charts & price action. |
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Equities markets are more fundamentally driven. Financial statements, earnings reports, changes to trade tariffs, and company mergers can all move markets and are something to watch out for when trading stocks. |
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Crypto markets are often popularity contests driven by hype. By far the smallest of the 3 asset classes the crypto market is very new and has adopted a lot of punters hoping to catch the next major move. Unfortunately, though there's a lot of exciting technology in this space, often the good stuff is falling to the wayside of other useless tokens simply due to hype. The trick with crypto is weeding out the bad from the good. "Pump & Dump" schemes are rampant in the crypto market. This is where the price gets artificially inflated by a large group of people that buy a "shit-coin" (as the term goes), to then spout its praise across Reddit and other forums. Once the coin gains interest from the gullible readers of these forums, price trends up, then the schemers sell at the top which drives price back down, never to return again. Something to certainly pay attention to! |
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Forex markets are most prominently dominated by technical traders. Having significantly the largest trading volume of all, market manipulation is virtually impossible, and price action is incredibly predictable compared to the other 2. Not being at the whims of a stray tweet from Musk wiping a position is a luxury to not be overlooked! Due to the well-respected chart patterns, technical traders typically prefer to trade Forex. For this reason, Pro Trader begins with teaching how to trade this asset class first, before introducing traders to the alternative asset classes later in the more advanced lessons. Personally, I trade 80% forex, and the other 20% is split between other asset classes when they present a clean entry. |
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I haven't seen any evidence that there is more money to be made in one asset class over another. Like any instrument, it comes down to how well you can make that beauty sing! Barker behind the drums, or Dylan behind the harmonica. It doesn't matter, as long as whatever you're doing, you do it well. 'til next time, |
