Trading Other Markets In Comparison to Crypto
Long before I was even aware of cryptocurrency's existence, trading on the "standard" markets was my passion and livelihood. To be more specific, the "Foreign Exchange" (Forex) markets. Whilst being quite tricky to work through on a daily basis, the profits would trickle in somewhat. And the levels of frustration from learning the ropes was something I'll never forget. Stress beyond stress. Luckily, the emergence of crypto had changed all that, almost...
Since the stagnancy of Bitcoin and the crypto market in general has been going on a little longer than I anticipated, going back to my previous "day job" was suddenly more of a priority than before. See, I love trading and charts. Since 2007 I've been involved and engaged in everything "candle" related so coming back to what I knew best was something that could be done with relative ease. Also just to mention, I'd already given FX a temporary break for about one year. Now, coming back I noticed the familiarity was pretty much instant and after a quick scour to see which pairs held the most potential, I dove straight in. GBP/JPY was my final choice which translates as the British Pound versus the Yen. This was about a fortnight back. Well, things are going OK but after the comfort of trading cryptos, these FX markets can be straight up hell!
Second guessing the price action, overshooting on some positions, sudden shifts in market sentiment. It's like a mine field compared to the ease of the crypto charts. Now, I know some may say that the volatility of the digital coin markets make it much harder to trade. Not the way I trade them though. The strategy of "buy low and sell on pumps". It's worked a treat for some time and don't see why things would be any different even in the near future. The way I see it, it's still a one way street and that's "up". And in stark contrast, dollar cost averaging on the way down will also continue for some time, with such a low overall total market cap valuation. Until years later where a level of equilibrium is found in the crypto markets, it's easy trading city! And having experienced that and now reverting back to the ways of the "old" markets isn't all that much fun, it seems.
But hey, these are swings and roundabouts, right? The quiet nature of Bitcoin for the time being, can't last forever. Something has got to give and I suppose it's just a question of a little more patience. No wonder I hear of professional investors and big institutions making the shift to these much improved highly profitable speculative markets in the crypto space. It just makes so much sense. But until the big turnaround transpires(whenever that may be), FX is playing a poor second fiddle to the best. Come on, BTC! Get your skates on, why don't you?
I've never forayed into Forex but did a bit of stock trading during the "tech boom" of the 90's . It was super old-school back then, I used to go to the library and read financial mags to determine which tech stocks looked promising. Although I didn't make much, it taught me what I needed to know to have a basic understanding of the crypto markets (and enough to finance the move from Ohio to Minnesota in '95)
I can totally relate, buddy. The decade or so of knowledge garnered from FX trading has taught me so much. Glad the knowledge is interchangable too! Happy to hear that it assisted with your move, man. :)
Thanks, @ezzy. It's so amazing how the past preps you for the future sometimes. Hope you all have a blast in Krakow!
Many thanks, my friend! :)
You are a brave man, playing on the FX market.
I'll stick to Stocks, Dividends and ETF's. Low stress, low return ... but at least I can feel comfortable that I can leave the screen long enough to go get a coffee.
Maybe I'm one of the lucky few but FX has been kind to me over the years. I'm hoping it continues until BTC lifts off again, lol. :)
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Forex is a tough market given how the governments themselves can manipulate and influence price with ease. Also, most times the use of leverage and margins presents a risk if you remain in positions overnight as traders in the market are very keen at taking your money by knowing where the stop order are.