Are there more risks with indices?

[terrifrancis]

Less risk with indices because they are diversified.

Less profit potential with indices because they are diversified.

That’s why I think they are a good investment option rather than for trading.

 

[Ralfmeyer]

Risk is less compared to say stocks or even currencies.

 

[Scataphagos]

That’s why I think they are a good investment option rather than for trading.

Both, actually.

 

[traderjakelong]

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.

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.

 

[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.

 

[MarkDawn]

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.

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.

 

[virtusa]

one wrong move and a trader’s money is history, and many times the trader too.

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.

 

[MarkDawn]

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.

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.

 

[MarkDawn]

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.

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.

 

[elizabethf]

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.

Maybe restrict your risk tolerance to 1% now, changes are very much required in profitable trading.