You often hear statements such as "FX is volatile that's why I trade it". So just to put some numbers to the idea I had a look at the daily ranges expressed in % moves of ASX20 stocks, FX and Equity Index futures. This is what I found taking data from June the 1st this year to now.
So it seems that again a trading cliche doesn't stack up to reality. Its clear that FX is not volatile by the amount of leverage that people have to use to make the smaller moves meaningful for profit and loss. Of course that's doesn't make FX the worst instrument to trade nor is daily range the best or only indication of a good instrument to trade. I would consider trading cost, tick size and spread far more important.
One often selling point by FX brokers is that its a 24 hour market. For me this is actually the biggest negative for a couple of reasons. Firstly this game is addictive and tiresome. Having your market open all the time removes the necessary break and time away from endless hours at the screen. This cannot be underestimated. A lot of the learning comes once you step away from doing and focus on what you have done, in a calmer state. You cannot do this while the quotes are flashing changes in front of your eyes. Especially if you are going through a draw-down. And maybe the biggest changes happen when your market closes and you are in a disgusted state from your seemingly stupid actions. If your market is still open and you are in a distressed state your likely to just add to your problems. But at close time that is a great opportunity to start the "never again" planning while you cannot do any more damage to your equity and head.
The other negative of the 24 hour market for me is actually the time that the action is spread over. Take the HSI. Its only open for 4 & 1/2 hours yet you get at least the daily range that most FX instruments take 24 hrs to do. The closing and reopening of equity markets for a daytrader is where the opportunity lies. When you have lots of money being put to work in a limited time. Your trades are on and they are either proven right or wrong quickly. Then you can move on to the next idea or better still walk away from the screen and have a life.