Forex vs Futures and Stocks
I have traded every type of market from wheat to Sears from the euro stoxx50 to heating oil options, and complex binary strangles. So what are the advantages of Forex? I think the best advantage is the pairing of strength to weakness. This can be done in stocks but you have to know the balnce sheets of 1000's of company's and server tax disadvantages. There are only 8 major forex pairs only 8 countries balance sheets to understand...and every thing is done out in the open, all traders know at the exact same time that Aud is having some cpi drawbacks or that japans core ind. is suffering, and they are going to intervene to stifle inflation. Or that Britain is having geopolitical problems that is hindering their "recovery". All one has to do is pair ones weakness with anothers strength. There is always a bull market somewhere....right now its the pound, there economy is recovering very fast right now, while New Zealand is having some issues. So I am looking for pull backs in an uptrend. One very simple method is I look for the direction of the Hull 10 period.
Futures has a great advantage over stocks. I don't think I have to list them here but the sure winner is tax advantage and the uptick rule. I think that all the advantages that are in the ES is in the forex market with the added advantage of commissions.
ex. typical spread in the E6 1 tick 12.50. most commissions are $5.00 so once the trade is on your in the hole $17.50.
E6 = $125,000 worth of EUR/USD MB trading offers a flat rate of $2.95 per 100k so 2.95 x 125k = $3.68 plus a typical .60-.90 pip spread = $13.68 this is a savings of $3.82....not to much but I make nearly 40-100 trades a day. Which is a yearly savings of over 40k of course there is rebates for both futures and fx. but the interbank spread at times in the EUR can be as low as .10 of a pip.
The EUR/USD trades all day and almost all week with the only times not good for scalping is 4pm-7pm. Even then the volume is suitable enough to make it worth while.
If you like range bound markets there is plenty of it, as well as trends I have seen a trends similar to once a month big mutual fund arb trading in the ES that last 5-15min last for 2-4 hours+++ in Forex. Where every pull back is meet with fresh buying and bidding up. I have seen ( and do see now )a beautiful range bound Eur/Usd where it goes from one extreme to another and back and forth where RSI trendline breaks or bollinger bands works +90% if there waiting for news range bound if were responding to news like big numbers that surprise its time to dump the indicators and ride the wave.
So open an account and try it out, but be careful don't do the 200:1 margin that most allow and also try and get some sleep in between the sessions LOL
Futures has a great advantage over stocks. I don't think I have to list them here but the sure winner is tax advantage and the uptick rule. I think that all the advantages that are in the ES is in the forex market with the added advantage of commissions.
ex. typical spread in the E6 1 tick 12.50. most commissions are $5.00 so once the trade is on your in the hole $17.50.
E6 = $125,000 worth of EUR/USD MB trading offers a flat rate of $2.95 per 100k so 2.95 x 125k = $3.68 plus a typical .60-.90 pip spread = $13.68 this is a savings of $3.82....not to much but I make nearly 40-100 trades a day. Which is a yearly savings of over 40k of course there is rebates for both futures and fx. but the interbank spread at times in the EUR can be as low as .10 of a pip.
The EUR/USD trades all day and almost all week with the only times not good for scalping is 4pm-7pm. Even then the volume is suitable enough to make it worth while.
If you like range bound markets there is plenty of it, as well as trends I have seen a trends similar to once a month big mutual fund arb trading in the ES that last 5-15min last for 2-4 hours+++ in Forex. Where every pull back is meet with fresh buying and bidding up. I have seen ( and do see now )a beautiful range bound Eur/Usd where it goes from one extreme to another and back and forth where RSI trendline breaks or bollinger bands works +90% if there waiting for news range bound if were responding to news like big numbers that surprise its time to dump the indicators and ride the wave.
So open an account and try it out, but be careful don't do the 200:1 margin that most allow and also try and get some sleep in between the sessions LOL
sorry about the spellijg
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