Currencies or Commodities?

Though price on currencies is more volatile sometimes I feel that forecast on commodities might be more accurate and well-grounded, where market is generally flat, experiencing no significant price spikes (just look at Crude Oil charts). Expert traders say that sweep of volatility is the main characteristic of the market allowing us to earn. I do agree however I tend to think that CFD’s are more safe and profitable to trade than Forex. Guys, what is your opinion on that matter?

Well, both currencies and CFD’s are a good financial instruments to speculate. However I prefer Forex, because from of the standpoint of fundamental analysis there are more news and fundamental events happen to make sound high-probability analysis. I really have no clue where to get actual news or reports about coffee or oil…

I really keen on CFD’s. Currencies might be considered as derivatives of commodities and in my view is deeply bounded with them (I mean currency fluctuations is a reflection of changes in price of tangible goods. Well-grounded analysis is a prerequisite for smart speculation that’s why I prefer to trade CFD’s and trade currencies just to test smth or just for fun

Never tried CFD (maybe there is nothing to complain with my currency trading results, hehe). IMO you can anticipate price action without knowing external circumstances or conditions (I talk about technical analysis). Currencies and CFD’s both have charts and I am sure if I get commodity chart I will find there “head n shoulder” pattern and will get clear signal for entry. As well as in currency on. All depends on what approach you choose to interprete prices…

Never try CFD’s!!! With their miserable volatility you would need large stacks to and decent leverage to squeeze some money out of there. Just look at the Forex 50-100 pips changes - easy, in every 20 min. Betting there would yield tremendous profits unless you are crude hunter for perfect technical or fundamental analysis!

I also voice the opinion above. Currencies are the best asset of trading, depsite of higher risk of blowing up…

It is up to you what kind of asset you choose for trading. As a newbie trading on Hotforex I tried several assets to test out what is best for me. Actually it is quite difficult to find that suits you best because you are seeing the same price feed on every of them, similar volatility, volumes, trend patterns etc.

Oil is a very interesting and promising asset. Never know how dollar will behave, especially from the standpoint of fundamental events. But Oil - any war, conflict, currency drops or spikes will immediately reflect on this commmodity… However it really lacks volatility… sluggish one…

I tried to trade commodities only once (natural gas) but I was frustrated because of volatility as well. If I saw it in some currency chart I would think that market is flat :slight_smile:

I really don’t like trading on commodities using spot method because you can spent less capital on them with relatively equal reward trading options on them. Because of their low volatility you just freeze your capital on open position, paying spreads, swaps, etc. It’d reasonable to pay premium on option once and choose appropriate time of expiry.

Commodity and Currency exchanging is great, fulfilling and yet convey a higher risk too.

I would not recommend you to carry out these trading at a large scale or with a large amount if you are a beginner or an intermediate. Get to know the basics and then you can scale up the amount.

1 Like