Post
Topic
Board Economics
Re: Why is crypto trading so similar yet so different from Forex trading?
by
South Park
on 25/05/2023, 23:08:31 UTC
This question seems so simple, yet the answer seems to escape me. Both involve technical and fundamental analysis, which includes indicators, charts, and candlesticks. They make use of the same trading principles, ideologies, and strategies. However, I have yet to see a forex trader who has dumped forex trading for crypto trading. I have yet to see a forex trader who doesn't claim that they make more money than crypto traders. I have also yet to see a crypto trader who has dumped it for forex trading. Have you made a move from Forex trading to crypto trading or crypto to Forex? What happened? Can one do both at the same time?
The principles to trade both markets are the same, however there are some differences which will require an adjustment in your strategy, the volatility of this market is higher and if you do not reduce your position size accordingly then the risks that you will take will be too high and your losses will increase as well, also the reason you probably do not see a forex trader becoming a crypto trader and the other way around is because once you know how to trade and asset and you can obtain profits with it, it makes more sense to specialize on that asset rather than to look for other markets to trade.