Are there more risks with indices?

Discussion in 'Trading' started by MarkDawn, Jan 24, 2021.

  1. That’s why I think they are a good investment option rather than for trading.
     
    #21     Jan 28, 2021
  2. Risk is less compared to say stocks or even currencies.
     
    #22     Jan 29, 2021
  3. Both, actually.
     
    #23     Jan 29, 2021
  4. Yes, there is some risk associated with all the investments. So, it is better to know about all the investment avenues first and then choose.
    Also, talking about indices, they are less risky because they are diversified.
     
    #24     Jan 29, 2021
  5. virtusa

    virtusa

    You should also consider the biggest risk in trading/investing. That risk is called: the trader.

    If things go wrong many/most times the trader is an essential reason why it went wrong.
    Accounts that get wiped out are for 99% because of the risk of the trader, not the market or the stock.
     
    #25     Jan 29, 2021
  6. MarkDawn

    MarkDawn

    I wouldn’t deny that, but markets are so unforgiving, one wrong move and a trader’s money is history, and many times the trader too.
     
    #26     Feb 1, 2021
  7. virtusa

    virtusa

    That's exactly what I mean. If you wipe out in 1 trade you are the most unqualified person to trade, and even missing the most essential/basic things in trading.
     
    #27     Feb 1, 2021
  8. MarkDawn

    MarkDawn

    Same as with currencies right? I actually first started with only a $100 with fxview, in the beginning it was alright, but later I created more accounts with avatrade and icm as well, but as I increased my capital I lost almost all of my initial capital also. I am so demoralised now that I want to try a different market.
     
    #28     Feb 1, 2021
  9. MarkDawn

    MarkDawn

    I never risked more than 3% but it seems that wasn’t enough. I actually wouldn’t mind paying someone now for trading on my behalf.
     
    #29     Feb 1, 2021
  10. Maybe restrict your risk tolerance to 1% now, changes are very much required in profitable trading.
     
    #30     Feb 1, 2021