I am fine with less profit, it’s mostly the risk part I am apprehensive of. I actually took 6 months to learn forex trading and then traded for a while - EURUSD and GBPUSD because they’re “safe”. But even with them ultimately I lost all that I had made. So now I am thinking of turning towards a completely different segment.
How will you compare indices to currencies? Or is it just absurd to do that? The thing is that I’m new to this market but have some knowledge and experience with major currency trading. So I would understand clearly with relative comparison. Thanks!
There is only one position that you can open with indices. You can either go long or short with it and your profit or loss is measured by how accurate your prediction is. The best part about trading indices is that you don’t need a large sum as an initial deposit.
I think every investment is risky so you can probably work on your risk management with it. Better would be to do some research and analysis before chipping in.
Indices measure the price performance of a group of shares. DJIA, DAX, S&P 500 are the most traded ones out there. You can check them out.