Forex and crypto similarities, which matter the most?

[Exitoral]

As we all know that forex and crypto have distinctive similarities. For any newbies here, this will open your mind to what you should do and shouldn't.

I'll list some of the most important similarities. If you have yours apart from the once I am going to talk about, you can add yours too.

The first most important one is risk management. As we all know that each human have a different risk appetite. Mr A might have the appetite to lose $1000 at a go. Mr B might have the appetite to loss $100. Know your risk appetite. Psychology is next. We all know that our mind is the greatest weapon. And to use that in the market is very crucial. You can't have an unbalanced life and think it won't affect the you when you come to trade. Do you stick to your plans that you set for yourself in the market or you do otherwise. Do you panic unnecessarily? are you a greedy person? Your ways of life affects your psychology and in return affects the market. Next is position sizing. You must know what amount to risk in the market. Let's say you have a capital of a $1000. You can't be risking everything on a trade. After you have done your risk management, then it is position sizing. Out of that $1000. How many percentage inside can you risk per trade that won't allow you blow your money. Another one is disciplined. Are you disciplined enough to follow that plan you set for yourself? Not revenging trade, enter trades only when your setup shows. Respecting your stop loss and all that. Is the market in the right trend? All that. Technical analysis. There are more. If there's other, please to do mention them.

My question is that out of all the similarities I have written and others who will later bring theirs. Which of them is most important in a long term when it comes to trading?

I won't like someone telling me all. There has to be some answer to that question.

[Oshosondy]

Respecting your stop loss and all that.

This is the reason most traders are losing. They will think of stop loss, which will encourage them to use high leverage and they will always be losing. They may be winning, but after days or 1 or 2 weeks, they will lose all their money. The best is to just use very low leverage, but most traders will not listen and be thinking that they are professionals.

[cryptoaddictchie]

My question is that out of all the similarities I have written and others who will later bring theirs. Which of them is most important in a long term when it comes to trading?

I won't like someone telling me all. There has to be some answer to that question.

I think forex or crypto what important is the patience of the user. Both concept have might differ but the goal of both is to profit so I think its really down to selfs discipline. I had some friends doing forex and they like the setup there. I wouldnt say crypto is better cause thats being bias since I am pro crypto.

I didnt try to do forex yet but hoping I could try and experience it bare hand to know the better differences.

[Body count4]

As we all know that forex and crypto have distinctive similarities. For any newbies here, this will open your mind to what you should do and shouldn't.

I'll list some of the most important similarities. If you have yours apart from the once I am going to talk about, you can add yours too.

The first most important one is risk management. As we all know that each human have a different risk appetite. Mr A might have the appetite to lose $1000 at a go. Mr B might have the appetite to loss $100. Know your risk appetite. Psychology is next. We all know that our mind is the greatest weapon. And to use that in the market is very crucial. You can't have an unbalanced life and think it won't affect the you when you come to trade. Do you stick to your plans that you set for yourself in the market or you do otherwise. Do you panic unnecessarily? are you a greedy person? Your ways of life affects your psychology and in return affects the market. Next is position sizing. You must know what amount to risk in the market. Let's say you have a capital of a $1000. You can't be risking everything on a trade. After you have done your risk management, then it is position sizing. Out of that $1000. How many percentage inside can you risk per trade that won't allow you blow your money. Another one is disciplined. Are you disciplined enough to follow that plan you set for yourself? Not revenging trade, enter trades only when your setup shows. Respecting your stop loss and all that. Is the market in the right trend? All that. Technical analysis. There are more. If there's other, please to do mention them.

My question is that out of all the similarities I have written and others who will later bring theirs. Which of them is most important in a long term when it comes to trading?

I won't like someone telling me all. There has to be some answer to that question.

For me I'd say risk management is the most important long term. The reason is you can have great technical analysis and psychology but if your risk management is poor, a single bad trade could wipe out months to years of progress. Even the best traders are wrong quite often, what keeps them profitable in the long run is making sure their losses stay small. Good risk management gives you enough time in the market to improve every other skill. Even as a beginner.

[Alphakilo]

My question is that out of all the similarities I have written and others who will later bring theirs. Which of them is most important in a long term when it comes to trading?

I won't like someone telling me all. There has to be some answer to that question.

I think forex or crypto what important is the patience of the user. Both concept have might differ but the goal of both is to profit so I think its really down to selfs discipline. I had some friends doing forex and they like the setup there. I wouldnt say crypto is better cause thats being bias since I am pro crypto.

I didnt try to do forex yet but hoping I could try and experience it bare hand to know the better differences.

I would say the experience is similar, but since the forex market seems older, and doesn't operate 24/7, that's one of the huge advantages of the cryptocurrency market.

One thing for sure is that both forex and crypto currencies market requires high level knowledge and use of risk management in order to stay in for longer and a sound knowledge of position sizing is a peck.
If a forex or cryptocurrency trader can be efficient about how they use and protect their capital at first, then they have already won about 50% of the trade, irrespective of the loss so far incurred . So I believe.

[slaman29]

Long term? Bias. Confirmation and anchoring bias.

Anchoring? Happened with me for many many shitcoins because of the BTC price action (ATH will always happen every cycle, and will never drop below 10% of ATH). So you get fixated on a price point and die because it never reaches that. Same happened with forex, on JPY (now all time low vs USD). There will always be a new low, no such thing as a bottom for some coins and currencies.

Confirmation bias, you know this. We look for news and Tweets to tell us we're right

[BitMaxz]

The most important aspect of everything mentioned above is risk management because our primary goal is to survive in the long run and eventually learn the other things you mentioned.

Take note about fees; I think this is the difference between forex and crypto, including the one mentioned above, in that in the forex market it's not always open, unlike crypto. Forex is closed on weekends, but crypto is always open.

[IjawMan]

My question is that out of all the similarities I have written and others who will later bring theirs. Which of them is most important in a long term when it comes to trading?.

There is no big difference between cryptocurrency trading and forex trading except for the assets traded in the respective structures. Both requires discipline from the trader, cause with discipline it helps to chart a course for risk management while minimizing losses.

To know that you should not be trading when your not emotionally stable cause it will affect your psychology, it all goes down to DISCIPLINE

To know that you shouldn't be greedy by using large leverage above your risk level, keeping to that knowledge still boils down to DISCIPLINE.

Every actions of the trader hovers around discipline, by a trader attitude, actions and reactions to the market it reveals how discipline or indiscipline they are.

[GreatArkansas]

My question is that out of all the similarities I have written and others who will later bring theirs. Which of them is most important in a long term when it comes to trading?

I will always go with discipline. This is the most difficult to master and maintain in trading, even crypto or non-crypto. Even experienced traders with huge capital still lose huge amounts of money, even though they already have great risk management, but why they already been in the market for too long; it is because of discipline. They are consistent in following their trading plans always without their emotions taking over.

[Aanuoluwatofunmi]

I will first advise that one should discover his own area of competency or interest, after this has been sorted out, try as much as possible to engage yourself in building up a professional competency in such area, understand why crypto trading is more important than forex trading, know their different strategies and also understand the conditions that each type of trade entails, crypto trading is mostly 24/7 unlike the forex trade that ends on weekends and resumes at the start of a new week.

[goldkingcoiner]

It really depends on what kind of trader you are in order to take advantage of the similarities. If you prefer trading low volatility and high liquidity, then forex is probably your go-to, but if you prefer higher volatility (and with some cryptocurrencies, low liquidity) then crypto is what you would want to trade.

You can do market analysis on either or both. Crypto is more about emotional speculation though, especially if you do not view crypto as Bitcoin but rather all the altcoins and shitcoins, including NFT's and so on.

That being said, I would put Bitcoin in it's own group and not put it together with crypto. Basically cryptocurrency = crypto+ Bitcoin.

[TheUltraElite]

I think this boils down to the qualities of a trader that are expected to do them good in the long term, they include patience and discipline. Only those who possess these qualities will time the traders properly and not fall for the wrong steps. There are people who trade and lose everyday and there are traders who trade sometimes and are often in net profit. Keeping yourself limited to spot trading is also another thing that prevents huge losses from happening.

Both forex and crypto deal with currencies, both are speculative markets. How we deal with the basics of trading a speculative market matter.

[jossiel]

My question is that out of all the similarities I have written and others who will later bring theirs. Which of them is most important in a long term when it comes to trading?

Risk management for me still just as you've said.

Because it comes with a lot of things, your limit of how much you'll trade and how much you're going to put the stop loss and the profit that you'll be taking.

Having that covers almost everything for the purpose of why we're trading. If you're so good at risk management, you'll minimize the risk and then content with what you'll earn.

[JeffBrad12]

My question is that out of all the similarities I have written and others who will later bring theirs. Which of them is most important in a long term when it comes to trading?

Knowing that forex and crypto is similar but different is important. Using high leverage in forex is normal because market doesn't swing too often but if you used the same behaviour in crypto trading, the market going to teach you lesson about respecting wide swing that crypto has.

In a nutshell, high leverage trading in forex = pretty normal, high leverage trading in crypto = you are asking to be hunted by market makers. The market of crypto beside the top 3 aren't big enough for your leverage trades to be safe.

[AVE5]

My question is that out of all the similarities I have written and others who will later bring theirs. Which of them is most important in a long term when it comes to trading?

I won't like someone telling me all. There has to be some answer to that question.

Are you for real? So you're obviously and naturally dislike me over my decision if I goes for all of them options?
Well as long as the financial market trading is concerned, they're all shares similarities in risk bearing and psychological behaviors.
Difference lies on the market behaviours that requires its strategies of studying the market movement before you take your decisions at what certain point you're predicting the market to settle depending the market direction of your prediction.
And perhaps their market driving speculation forces differs.
So on the volume of their volatilities and market driving forces differs too.

[Wakate]

Respecting your stop loss and all that.

This is the reason most traders are losing. They will think of stop loss, which will encourage them to use high leverage and they will always be losing. They may be winning, but after days or 1 or 2 weeks, they will lose all their money. The best is to just use very low leverage, but most traders will not listen and be thinking that they are professionals.

I don't know why you have been campaigning for people not to use a stop lose but you need to have a solid reasons before I will agree with you. I hope you don't become one of the victims of traders that have lost huge amounts of money because they never used stop loss.

It also depends on the kind of trader that you are. If you are a scalper or day trader, I can agree with you on a liitle ground but hope you don't find yourself in situations where you may regret why you never use a stoploss.

[Charles-Tim]

Forex is closed on weekends, but crypto is always open.

This is true, but what about TradeFi? It is called traditional finance form a reason, but it is traded on crypto exchanges and they are closing one hour daily and during weekends exactly like forex, commodities and stock markets. They are traditional finance, but traded on crypto exchanges.

[tbct_mt2]

I will always go with discipline. This is the most difficult to master and maintain in trading, even crypto or non-crypto. Even experienced traders with huge capital still lose huge amounts of money, even though they already have great risk management, but why they already been in the market for too long; it is because of discipline. They are consistent in following their trading plans always without their emotions taking over.

With a biggest similarity between forex market and cryptocurrency market like high leverage and liquidation risk, traders in both markets must be very careful with their capital, leveraged used and how they manage their positions to avoid market liquidations.

With traders, they commonly are affected a lot by emotion from greed, uncertain to fear, so they must use something as tools and weapons for managing their positions and capital. Weapons like stop loss order and stop limit orders can help them closing their trading positions automatically, without emotional delay.

One of the best weapons in trading.

[Frankolala]

Risk management is the most important of all because limiting your losses will give you a better chance to stay in the game for long and gain good knowledge about other aspects of trading. Some people open a position without understanding the market and they will end up losing. You should only open a position when you understand the market to avoid unnecessary losses.