Traders come in many shapes and sizes. With no shortage of markets and securities to choose from, new traders are likely to find their niche sooner rather than later.
Forex and commodities just so happen to be two of the most popular asset classes. At some point, you may be confronted with both. Although no-one says you have to isolate your trading to just one of the two, it doesn’t hurt to know the differences and see which one may suit you the most.
Find out if you are a Forex or Commodity Trader
5 Signs You’re a Forex Trader
- You think in pips: you’re already counting in pips instead of numbers.
- 2. You’re obsessed with the U.S. Dollar: You follow the news of the USD and its ups and downs have an effect on you. Makes sense as the greenback accounts for roughly 90% of total forex trades.
- Janet Yellen’s opinion matters most: You know who Janet Yellen is (in fact, you know every major central banker around the world). Central bank meetings make you anxious and excited.
- Markets are a 24-hour-per-day endeavour: You’re constantly thinking about how the euro will perform at the start of Asian trading. Not every trader views the market in full 24-hour cycles – unless they’re a forex trader.
- MT4 or bust: MT4 is the only platform that matters and you refuse to try anything else.
5 Signs You’re a Commodity Trader
- You’re not afraid of futures contracts: Not only are you not afraid of futures contracts, you prefer them. Commodities are futures contracts.
- You don’t actually own any gold bars: When it comes to owning physical bullion, you’re all talk, you prefer doing it online. It’s OK, a lot of us are the same way!
- You believe an economic disaster is around the corner, and have believed this to be true since the financial crisis: You love gold because you are 100% sure a major market crash is about to happen, and gold is considered your safe haven.
- West Texas Intermediate and North Sea Brent mean something to you: reading about WTI and Brent is the news you look forward to and get excited about.
- You look for weather patterns: You think about the impact of weather patterns on crop yields even though you are not a farmer nor do you have any plants to take care of.