No matter what market you decide to make your mark in, be it stocks, futures or forex, trading methods and strategies differ in all three. A trading method in the stock market will not work in the forex market due to the simple fact that the forex market is differently set up, differently run, and profits are even made differently than in the stock market. This combined with the high liquidity and extremely high volatility make trading forex much more risky than trading stocks. The same thing goes for futures contracts; they have different expectations and different methods than stocks.
When it comes to futures, a good trader never waits more than twenty or thirty minutes to execute a trade. If you wait any longer than that, chances are you will lose money. If you wait until the end of the day, you will no longer have the ability to make a decision: the trade will be automatically executed and closed when the bell rings to signal the market closing.
Forex is very different from futures; for one thing, the market never closes. Trading goes on all over the world, twenty-four hours a day, seven days a week. This means that a trader can carry out trades at any time of the day and night.
The trading strategy that you employ across all these different markets depends on you as a trader. What\’s your trading personality? Are you emotional and unable to cope with risk? Or are you rational and able to handle risk? This will determine what you use as your guideline in trading.