Commodities vs Currencies
In my opinion most traders trade currencies in forex and a major part of these traders trade major pairs. A big part of traders also trade commodities alongwith pairs.
Comparitively smaller part trade commodities because they think that commodities r less risky and equally profitable.
How do u trade forex? Do u think commodities are less risky as compared to currnecies.?
Stick to your rules
commodities r less risky bcoz their movement is easier to predict as compared to currencies. But it is only true in long run. In short run I dun see much difference between trading currencies and commodities.
Isnt commodity price related with a currency? So price fluctuations also take place bcoz of increase and decrease in currency value. So commodities price change bcoz of two big factors. One is demand and supply and the other is currency value.
Stick to your rules
A big percentage is day trader or scalper. I dun see much difference. It actually depends on u if u feel comfortable in trading currencies or commodities.
Currencies r easier to trade in my opinion. Maybe because I am used to them. I have traded gold for short time. But I prefer to trade Majors.
In terms of volatality, there is no difference when we trade. We can easily sell and buy both commodites and currencies. So even if currencies r more volatile, it doesnt matter.
In terms of prediction, it is upto u. Maybe u r used to trading majors or maybe u feel comfortable in trading minors or exotics. It totally depends on ur trading style. I dont know exactly why people choose a specific group of pairs but there is definitely some logic behind it. Most of the times logic behind using major pairs is that bcoz they r most discussed and popular pairs with lower spreads.
The good or ill of a man lies within his own will. – Epictetus
I trade currencies because of the fast inflow of cash and they are very easy to analyse,the are better also because they requier less capital as you would compaire with comodities. whether going up or going down,they are very good in having rewards on both sides.
"Foreign trading business includes currencies, metals and commodities but I always prefer currency trading. Some commodity trading is not so easy. Commodity trading is very dangerous and we can make a profit if we know the trend Come on in, take a look and enjoy yourself! "