3 reasons why you should not trade forex only
Individuals who trade forex only should broaden their horizon
Many individuals who started trading forex declare that ‘I only want to trade forex because it is the best instrument for me’.
I agree there are many strong reasons for individuals to trade forex only. Indeed traders want to find markets that may suit their personal way of life. However anyone who excludes himself from trading other markets without giving it a try is depriving himself of many opportunities. There are 3 reasons that traders should look at other markets especially if he wants to trade for a living.
Trading as a skill
Trading is a skill and once it is mastered can be applied to trading futures, stocks, commodities as well among many others. Although each market has its own rhythm and rules, the skills applied to recognising setups in charts, understanding economic indicators, deciphering market sentiment, managing risk are nearly universal. Indeed, the skills that apply to trading can be applied to long term investing as well.
Interconnected markets, different rhythm
Although markets are deeply interconnected, they move at different rhythm so that while one market is consolidating, another is moving. Traders who trade many instruments can move around freely and capture opportunity from different markets.
Distribute risk, income source
There is a chance to design a trading and investment portfolio that includes products from different markets with different risks and time horizon. This will help the trader to truly optimise his activity by distributing risks, and gaining income from a mix of short term trading profit and long term investments.