As far as I understand many find the forex platform more beneficial and suitable for newbies? Is it easier to make money on it?
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As far as I understand many find the forex platform more beneficial and suitable for newbies? Is it easier to make money on it?
In my opinion, you can make money on it, but it’s not easier. Although I’m trading now on a Olymp Trade forex platform , and I think, the options are more suitable for the newbies. The options itself is an easier to learn. Of course, to make a price forecast is not an easy task. Nevertheless with the options, a newbie should concentrate only on two parameters – direction and expiration. And the decision is made only once – at the moment of deal opening. On forex you should evaluate the situation all the time, the deal can be opened a few days or even weeks, and every day you should check if it’s still worth to keep it opened. Each market has a pros and cons.
Oh, clear. Actually, I was going to learn both platforms anyway. I’m just making a decision, where will be easier to start…
The biggest economic market is Forex market. Daily exceeding volume is more than $4 trillion. People are very interested to do this profitable business and seek for a reliable broker. To make high profit rapidly I join at Forex4you trading platform. They have the best facilities for making profit rapidly. They have the narrowest spread from 0 pips, instant market execution, flexible high leverage 1:1000, smart bridge of technology and error free trading platform.
broker selection must be able to be considered well, this is needed so that traders can become better and can get more leverage in carrying out trading activities to be even more leverage in getting security and comfort like what I get from Tickmill.
It’s difficult to say what’s easier to start with. People who started trading options tend to stick to this type of trading. Others, who got used to forex first, find options either too complex to understand the “philosophy” behind, or too limited in opportunities they give. If you ask my opinion, I would suggest to go ahead and start with forex. If you get used to options, you’ll find it more difficult to trade forex afterwards.
Why do you think forex gives more opportunities? It all sounds like options platform is more plain and easy to understand, but for some reason you think that if I start with options, I’ll still get my way to forex sooner or later. And then its going to be a problem. Correct?
Not exactly. I mean, not necessarily you will want to try forex. But most of the options traders I know do find it necessary to switch to forex market at some point of their career development. This is because when trading options your potential gain and loss are limited from the very beginning. As well, you can’t really do much about your open position when trading options. Its very similar to tossing a coin, but with some scientific approach to deciding whether you bet on heads or tails. The commonly known rule every trader knows is “Cut your losses and let your profits run”. It’s only applicable at forex. This is why people tend to quit options for the sake of forex/ETFs trading.
Easy-peasy! Thank you, this worked well and was exactly what I was looking for!
broker selection must also be able to be considered properly, this is needed so that traders can become better and can get more leverage in getting the security and comfort of trading like what I get from Tickmill.
I’ve always thought that expiration for options is the only way to find out what it ended up with. How come that you can cut your losses when trading options?
You can view option not only as a contract, according to which you either lose your stake or double it at certain time. This option is a liquid asset itself. If at a certain time before expiration you decide that something is not going according to your plan, you can sell this contract. The further is the price from option’s winning point, the cheaper it gets.
What a surprising discovery! I got the idea. But I don’t understand how anyone can use this feature with profit. Any ideas?
This feature is not exactly for making profits with. It’s the way to cut your losses when trading options. On the other hand, I've heard of some options strategies when you exploit it. Read it in Olymp Trade’s blog. The point is that you buy two opposite options with same expiration right before some important economic news release. Then you sell one of the options with a small loss once the price starts moving in a certain direction after the news release. Little loss on one of the options + big gain on another one = profit.
every trader must also be able to have a trading plan, a trader can arrange and test his trading plan in an educational program provided by Tickmill, this is done so that the trader can generate maximum profit and can survive on a real account.
I've read about this strategy on Olymp's blog. It's called binary gambit. Sounds good on paper. In real life economic news releases may be too stressful to trade.
I've finally opened and funded account at Olymp. Decided to trade options for the beginning. Too early to say whether the broker is OK, it's only been a week since I've started and I only traded 3 days. Not much profit to withdraw yet, lol
Trade with proper trading plan will be very beneficial for the Forex traders. In Forex market place the traders who trade with maintaining proper and effective trading plan, could achieve their success easily. I only work with ForexOne the secured broker. They give latest political news, events, charts, quotes, data, hottest currency news, economic calendar, trade alert and others so that the trader can make their own trading plan completely.
that's why it will be very important for novice traders to be able to take advantage of existing educational programs, this is needed so that traders can become better and can get more leverage in improving existing trading skills by utilizing Tickmill's education program.
Thanks! I'm OK, but real money trading is definitely a bigger challenge. My heart beats faster in front of a trading terminal than it does when I'm working out in a gym, lol.
No secret at all about forex. With options I only need to identify the entry point and the direction as you know. With forex there is another thing to worry about. I mean exit points. Also trades should last longer with forex and I don't always have much time to watch my open positions. I'm planning to return to forex later though, when I'm used to this stress and have more time.
The heartbeat problem will go away with experience. The most important thing here is to have a trading strategy and know exactly how to follow it. Once you have a strategy, you keep doing what you've got to do and leave the results up to market. If strategy is good, with some ups and downs but you will inevitably start gaining profits. This is an amazing feeling when you withdraw the first profits. I'm a little jealous you still have this experience ahead :-)
Thank you, that's very encouraging. By the way, speaking of strategies. I'm journaling all my entries when I trade options with Olymp. I've noticed that some of such trades could be done on forex with higher profits, but I don't have a proof so far. So in a journal entry about the trade I note what was the entry, where did the price go and what was the max profitable excursion for such a trade. If the data on at least 50 trades will show that MFE was really significant, I'll reconsider my decision about trading options only. Fortunately Olymp Trade has got forex platform as well, so I won't need to transfer funds to switch to forex.
broker selection must also be able to be considered properly, this is done so that traders can be better and can get more leverage in getting security and comfort like what I get from Tickmill.
Statistics is an interesting field of science. Numbers are too easy to manipulate to prove or reject some hypotheses. I don't mean manipulating the numbers in a common sense, but I mean that there is a danger that you choose certain specific parameters to investigate that would prove you are right or wrong depending on the result that you want to get. So before you decide whether you want to trade forex or options, better try both real-time and you will get more reliable results.
Totally disagree. Market is a battlefield. You can't win here simply by raising your sword here and there. Numbers, charts, indicators and statistics all come to help here. Yes, statistics is not a precise science and there is a chance that you gonna miss some important parameters in your analysis. But this is not a reason to reject the approach totally. My experience with Olymp has got much better when I started paying more attention to correlations and numbers. It can really bring trader to a new level.
I know what both of you are saying. To tell the truth, keeping stats and working on them is very tiring. Even though I suspect forex can be more profitable, but at this point I'm totally satisfied with how it all goes on options market, so for now I guess I'll just do my best to keep up the good work with options. I can always return to forex if i wish and I won't even have to change the brokerage, which is really nice as I've already said before. Was a good decision of Olymp to offer both opportunities on the same platform. They don't have too many features and I still think there could be more indicators there, but some nice ones like this easy switch between options and forex + easy withdrawals make a good deal overall.
the selection of the existing broker must be able to be considered properly, this is necessary so that traders can pay attention to the existing regulations and can be more leverage in getting the security and comfort of trading with Tickmill.