Are there more risks with indices?

[Kagisopeter]

There are various options with indices and you can select the one you want to trade. I prefer NASUSD.

 

[MarkDawn]

I’ve read that the companies with higher share prices get higher weightage with indices, is that true?

 

[Ralfmeyer]

All I can say is that there is no harm in working on risk management at an earlier stage. Why wait till your account is at the edge of the cliff and then act. Having a proper risk management planned for your trades is the way to go. At least, that’s what I believe. Correct me if I’m wrong.

 

[botsmarok]

All I can say is that there is no harm in working on risk management at an earlier stage. Why wait till your account is at the edge of the cliff and then act. Having a proper risk management planned for your trades is the way to go. At least, that’s what I believe. Correct me if I’m wrong.

Can’t argue with that logic. How much do you risk per trade?

 

[ph1l]

I’ve read that the companies with higher share prices get higher weightage with indices, is that true?

A few indexes are price-weighted.
https://en.wikipedia.org/wiki/Price-weighted_index

The Dow Jones Industrial Average and Nikkei 225 are examples of price-weighted stock market indexes.

 

[MarkDawn]

Using index funds is no guarantee of investment success. Just like with any mutual fund or ETFs, how you use these products is the key to your success. Index funds are nothing more than a building block to construct your portfolio.

A good starting point you say?! I actually started with forex trading.

 

[MarkDawn]

A few indexes are price-weighted.
https://en.wikipedia.org/wiki/Price-weighted_index

Thanks for the link

 

[senumouv]

I’m not so much of an indices person but I’ve heard they can be profitable. I’ve traded demos with Xm and recently opened a live account with Fxview. The spreads are good with them.

 

[Ralfmeyer]

Can’t argue with that logic. How much do you risk per trade?

For a better and safe trade, I generally don’t risk more than 2% of it. Been doing alright with this figure so far.

 

[senumouv]

For a better and safe trade, I generally don’t risk more than 2% of it. Been doing alright with this figure so far.

I try not to go beyond 1% of my trades. I suppose it differs for different levels of traders.