Are there more risks with indices?

botsmarok · Feb 17, 2021

Petermarkwood said:
I keep these three things in mind while trading. Be it indices or any currency pair, I use an economic calendar, tracking stops and stop loss orders. These are really helpful for bringing down the potential risk.

That’s good Peter. Could you give some details and what broker are you using, if you don’t mind?

Laura48 · Feb 17, 2021

The risk factor with indices is low, you can go ahead. Just be careful with making choices.

Petermarkwood · Feb 17, 2021

botsmarok said:
That’s good Peter. Could you give some details and what broker are you using, if you don’t mind?

I believe tools like the trailing stop is very powerful when it comes to tracking some market movements while the stop loss entirely protects the account from blowing up. I’ve been using these with my brokers - Pepperstone, XTB, Fxview. I keep using a blend of these two depending on what security I am trading and what the market conditions are.

scadderoccasional · Feb 17, 2021

I’ve been trying to get used to indices myself. Any suggestion would be great, thanks!

MarkDawn · Feb 18, 2021

Laura48 said:
The risk factor with indices is low, you can go ahead. Just be careful with making choices.

I am assuming you mean to go with the more popular options.

hilfspaul · Feb 18, 2021

I day trade all securities and that includes indices as well. My main reason for this is avoiding overnight or other costs for holding a position for long. But I wouldn't suggest this to beginners as it can be very time consuming and requires decisions on the feet.

botsmarok · Feb 19, 2021

I suppose indices can be seen as a good asset for holding long term.

hilfspaul · Feb 19, 2021

botsmarok said:
I suppose indices can be seen as a good asset for holding long term.

There are no rules as such but yes, swings are not crazy with indices like in stocks or currencies, so can give off more stable returns if traded right.

Nicolemaz · Feb 20, 2021

@hilfspaul Stock trading is a big no for newbies. I think only experienced traders should involve themselves with trading stocks. Stock prices hitting lower circuit is a big risk which made me lose my money as a complete market noob. I restarted with fxview with indices, spreads were/are appealing, but I couldn’t keep myself off stocks for long. Again invested in fidelity but this time following the ‘invest and forget’ approach.

botsmarok · Feb 20, 2021

Nicolemaz said:
@hilfspaul Stock trading is a big no for newbies. I think only experienced traders should involve themselves with trading stocks. Stock prices hitting lower circuit is a big risk which made me lose my money as a complete market noob. I restarted with fxview with indices, spreads were/are appealing, but I couldn’t keep myself off stocks for long. Again invested in fidelity but this time following the ‘invest and forget’ approach.

So I’ll add stocks to my long-term asset list