Stock vs Forex for trading? Pros/Cons?
Thursday, January 30, 2014
, Posted by Ryanita at 10:59 AM
BadBoyNice
Can you get rich with forex trading like you can with trading shares?
What is better?
I am thinking that forex is better because the market is opened pretty much anytime thus I would be able to keep a day job and trade too. Forex trading does not seem like there is much to it, as in... the news does not effect it does it? Like for companies once a company releases something publicly then the market gets effected. Is forex like that too?
I am completely new to Forex and just found out about it yesterday... Is forex trading just based off of pattern analysis?
Answer
First things first, you are new to Forex trading and at first you say it appears to you that there is not much to it. This opinion is normal for people new to Forex but when you get experience you will soon realize just how much you don't know and it is lifetime learning material. Trading Forex is also very hard and high risk so don't be under any disillusion; however the potential to make more money fast exists as does the potential to lose.
Stocks are much lower risk in contrast and of course will be less profitable but returns are safer, more secure and consistent... but this is relative.
Contrary to your initial thoughts the news does affect the Forex market a lot and that is why there is an economic calendar of scheduled news on all major Forex news sites. Forex is trading with leverage and because of that profits and losses are magnified sometimes by 400x or more, which means you can lose your initial deposit or make a lot of money within the day, if you are careless.
To trade Forex successfully you need to learn how to interpret the economic news, understand technical analysis and develop your own psychology to handle the market with real money. It is possible to become consistently profitable but you need a lot of experience and the right attitude.
Since it is a zero sum game those making money in Forex have to be much better than the average trader, and they have to have the right tools to beat the average trader (which includes having more funds). It also helps to be with a good STP/ECN broker that does not interfere with trades.
Here are some good websites that can help:
http://www.forexfactory.com/ - Biggest Forex website, forum, news, economic calendar
http://www.babypips.com/ - Forex educational website
http://www.investopedia.com/ - Finance educational website
http://www.investing.com/ - Forex, CFDs, Binary Options, Stocks news and information portal
http://www.xglobalmarkets.com/ - ECN-STP broker
First things first, you are new to Forex trading and at first you say it appears to you that there is not much to it. This opinion is normal for people new to Forex but when you get experience you will soon realize just how much you don't know and it is lifetime learning material. Trading Forex is also very hard and high risk so don't be under any disillusion; however the potential to make more money fast exists as does the potential to lose.
Stocks are much lower risk in contrast and of course will be less profitable but returns are safer, more secure and consistent... but this is relative.
Contrary to your initial thoughts the news does affect the Forex market a lot and that is why there is an economic calendar of scheduled news on all major Forex news sites. Forex is trading with leverage and because of that profits and losses are magnified sometimes by 400x or more, which means you can lose your initial deposit or make a lot of money within the day, if you are careless.
To trade Forex successfully you need to learn how to interpret the economic news, understand technical analysis and develop your own psychology to handle the market with real money. It is possible to become consistently profitable but you need a lot of experience and the right attitude.
Since it is a zero sum game those making money in Forex have to be much better than the average trader, and they have to have the right tools to beat the average trader (which includes having more funds). It also helps to be with a good STP/ECN broker that does not interfere with trades.
Here are some good websites that can help:
http://www.forexfactory.com/ - Biggest Forex website, forum, news, economic calendar
http://www.babypips.com/ - Forex educational website
http://www.investopedia.com/ - Finance educational website
http://www.investing.com/ - Forex, CFDs, Binary Options, Stocks news and information portal
http://www.xglobalmarkets.com/ - ECN-STP broker
Forex vs Stock risks?
Robi da ko
Ok i will not go in detail which is best, i'll only ask you to say which has more risks
Answer
Forex is riskier due to leveraged trades. Given the volume involved, the amount of leverage / margin gets amplified, leading to either huge profits or huge loss. For experienced forex traders, though, it's all part of the profit game.
Forex is riskier due to leveraged trades. Given the volume involved, the amount of leverage / margin gets amplified, leading to either huge profits or huge loss. For experienced forex traders, though, it's all part of the profit game.
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