Originally Posted by Tekmnd

Hi Mike

Welcome to the site.

"why is that some traders like you ,diversify their attentions and money on FX,shares,options,futures etc instead of focusing on ONE area of trading?"

Some traders feel you should focus just on one area and learn it really really well. For me, I have found that the way all the markets are related means that I can use one market as an indicator for another market.

An example of that would be to look at the US stock market and the USD. The USD is rising and dropping pretty much on safe haven/fear factor. You could argue the same but opposite is true about the stock market (one goes up, the other goes down). A trader could use the length of moves in one market to estimate the length of moves in another market.

Also, I have found that much of what applies to one market applies to all (chart reading for instance), so learning a new market is not like starting over.

Cheers
Tek

Originally Posted by Tekmnd

Hi again



The VIX (Volatility Index), which measures the open order positions of options. It is often referred to as the fear index.



Stochastics are more used to show over bought and over sold levels. It is an oscillator. Other oscillators to use like this are bollinger bands and RSI



Best is a matter of opinion; many traders prefer different tools.
I have an ongoing thread on the Speculative Sentiment Index (SSI) which shows the levels of small retail traders with positions in the USD. I am still learning the indicator, but hope the thread will grow into something big.
Speculative Sentiment Index (SSI) Analyst Project
Also, you might try the COT (Commitment Of Traders) report.

Cheers
Tek