Are there more risks with indices?

[MarkDawn]

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.

I’m too embarrassed to say that I am one of them, but the truth is that I started on a very good note, it’s perhaps overconfidence that took me down later on. My new plan is to play very safe with indices.

 

[Ralfmeyer]

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.

I might have some inputs on risk management. I find the use of stop loss, trailing stops and economic calendar most effective if dealing with indices. Helps a lot.

 

[terrifrancis]

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.

I would suggest not trusting anyone with your money. I wouldn’t!

 

[elizabethf]

There is good leverage on indices. But that will also depend on your broker. I usually trade with XTB, Oanda and Fxview and they have pretty low margins. The spreads are quite competitive and the risk can be avoided if you are careful enough. I trade NASUSD and E35EUR most days.

 

[Petermarkwood]

Try not to worry about it much. It is not that difficult to trade indices. The commission rates on them are low if you trade on a stable platform. For 100GBP, the commission round trip for 1 lot should be about USD 0.168.

 

[Ralfmeyer]

I prefer indices too. It’s good that you decided to collect information before stepping into it directly.

 

[Rickshaw Man]

How much risk with indices? Have yet to start. Wanted to know important bits before starting. Thanks a lot.

Stock's can go to zero, indexes can't. Hope that answers your question.

 

[Kagisopeter]

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.

Yeah, you’ve pretty much summed it up. You can also speculate on both rising and falling markets with indices.

 

[Launcepeter]

You can easily trade indices and there is not much you have to do with regard to them. They generally measure the performance of a group of stocks. There is a lot of exposure you get to the economy or a particular sector at once and that too by opening just a single position. You will have to keep an eye on the rising and falling of prices without taking ownership of any underlying asset.

 

[shawnaboyd]

Hope you know how to trade indices properly. It requires a lot of concentration and time. Only with a lot of practice as with other markets you would be able to get a hang of Indices market. It took me more than a month of continuous trades to make my first profit on Fxview, same was with my 2nd broker Oanda. And if I am to believe other traders, it can even take years before real profits start pouring in. So good luck with that!